Tech Giants: Starting from Bankrupt Companies

183: Chapter 183 The ”Collapse” of EDAGermany time, February 10, 3 PM. In the strategic conference room on the 32nd floor of Infineon headquarters, the atmosphere was as heavy as a tomb.

Seventeen board members sat on either side of the long oak table, with an average age of fifty-seven, all with grey or white hair. Outside the window were the red roofs of Munich’s old town and the twin towers of the Frauenkirche. Five hundred years of history flowed quietly under the winter sunlight, but inside the room, time seemed to have stopped.

Marcus Schneider stood in front of the projection screen, the collar of his white shirt soaked with sweat. He held a laser pointer, the dot trembling on the PPT.

”Board members, this is the announcement released by Synopsys at 9 AM this morning.” He switched the screen, enlarging the original English text:

[Synopsys Announcement]

To European Partners:

In view of the current special circumstances, we have decided to provide European enterprises affected by the situation with limited licenses for the 2018 version of Virtuoso tools, valid until February 10, 2019. This version supports process designs of 14nm and above, but is prohibited for use in advanced processes below 7nm.

Additional Terms:

Users must submit design files for review every quarter.

It is prohibited to transfer design data to non-America EDA platforms.

If you cease cooperation with specific third parties (specifically Spark Technology), you may apply to upgrade to the latest 2023 version.

Marcus finished reading, and the conference room fell into a ten-second silence.

”This is the ’mercy’ of America.” Chief Financial Officer Joseph, a bald sixty-year-old man, was the first to break the silence. ”Old version, 30% worse performance, plus backdoors for auditing. The most poisonous part is the last clause—they want us to cut ties with Spark Technology.”

”But at least it’s an option.” Hans, representative of the conservatives and Vice Chairman of the Supervisory Board, spoke up. He was seventy-three, wore gold-rimmed glasses, and had once led Infineon through the 2008 financial crisis. ”Marcus, tell us the truth: Can Spark Technology’s Shennong platform really replace Synopsys?”

Marcus took a deep breath.

Over the past ten days, he had barely slept. After the twelve-person expert team from Spark Technology arrived at the Infineon design center, he had personally participated in the comprehensive testing of the Shennong platform. The results shocked him, and also frightened him—shocked by the technical strength of the Huaxia people, and frightened that the understanding he had built over thirty years was being overturned.

”Mr. Hans, I have the complete test report here.” Marcus switched the PPT.

Data Comparison Table:

Tool Comparison: Synopsys Virtuoso 2017 vs Spark Technology Shennong v2.1

Layout and Routing Speed: Shennong is 3.2 times faster (AI-assisted optimization)

Power Analysis Accuracy: Error within ±2%, on par

Design Rule Checking: Shennong supports European automotive standards

7nm Module: Currently missing in Shennong, but Spark Technology promises to complete it within three months

Most importantly: Shennong is open source, no backdoors, no mandatory audits

He zoomed in on the last line: ”Synopsys’s old version not only has poor performance, but more fatally—what happens in a year? If America cuts off supply again then, our designs will be paralyzed again. Moreover, they require quarterly audits of design files, which means the next-generation chip schemes for Mercedes-Benz, BMW, and Porsche will be mastered by America in advance.”

”But that’s a year away.” Hans insisted. ”We can use American tools to get through the immediate crisis while looking for alternative solutions. Marcus, you understand technology, but you must also understand business reality—80% of our customers are American automakers. If we completely offend Synopsys and offend Washington, what will happen to the orders from Ford, General Motors, and Tesla?”

”They won’t cancel the orders.” Erich, the Technical Director and a veteran of chip design at fifty-five, suddenly spoke up. ”Because besides us, no one can design an electric vehicle control chip that meets America’s new EPA emission standards within three months. Hans, you don’t come from a technical background, so you don’t understand—it’s not that we are begging them now, it’s that they need us.”

”But the political pressure...”

”Politics?” Marcus suddenly raised his voice. This was the first time he had been so uncomposed in a board meeting. ”Mr. Hans, you lived through the Cold War. If the Soviet Union held our lifeline today and told us ’use my technology, or I’ll cut off supply,’ what would you choose?”

Hans froze.

Marcus walked to the window and pointed at the city outside: ”Munich was bombed into ruins during World War II, and we spent fifty years rebuilding it. Why? Because we knew that if we handed our fate over to others, the outcome would be ruins.”

He turned around, his gaze sweeping over every board member.

”There is a subtle sentence in the Synopsys announcement: ’If you cease cooperation with specific third parties.’ They don’t dare to write ’Spark Technology’ directly because they know it violates WTO rules. But this is a threat—using sugar-coated bullets for one year to induce us to break with Spark Technology. After a year, once the sugar coating is eaten, the bullets will explode.”

”Then what should we do?” Chairman Karl finally spoke. This seventy-six-year-old man was the soul of Infineon. Every word he spoke seemed to have been precision-machined. ”Marcus, tell me the truth: Do you believe that the Shennong platform will complete the 7nm module within three months?”

Marcus was silent for three seconds.

”I believe it,” he said. ”Because over the past ten days, I have seen Spark Technology’s speed with my own eyes. Their engineers work eighteen hours a day, and code updates are measured in hours. Last night, Academician Li Weimin—one of the founders of Synopsys—called me personally to say that the core algorithm for the 7nm module has been broken through and is currently being tested.”

He pulled up an email, sender: Li Weimin.

The content was brief: ”Marcus, the first version of the Physical Design Kit (PDK) for the 7nm module has been completed, test report attached. We plan to release it to European partners for trial within 72 hours. P.S. Welcome to visit Huaxia, I will show you the real ’speed’.”

The attachment was a 128-page test report, with data so detailed it was outrageous.

”Li Weimin...” Chairman Karl murmured. ”I attended his lectures at Stanford thirty years ago. If even he believes in Spark Technology, then...”

The meeting lasted until eight in the evening.

Outside the window, it was dark, and the lights of Munich came on. A waiter brought sandwiches and coffee, but no one touched them.

It was time to vote.

”Those in favor of accepting Synopsys’s terms and suspending cooperation with Spark Technology, please raise your hands,” Karl said.

Seven hands went up—just over half.

Marcus’s heart sank.

But Karl didn’t announce the result; instead, he continued: ”Those in favor of completely switching to the Shennong platform and decoupling from American tools, please raise your hands.”

Another seven hands went up.

A tie.

Everyone’s eyes were fixed on Karl—the Chairman had two votes.

The old man slowly took off his glasses and wiped them with a velvet cloth. He had been doing this for fifty years, every time before making a major decision.

”When I was young,” Karl began, his voice old but clear, ”I was an apprentice at Siemens. My master told me: Germany manufacturing is a world benchmark not because we can imitate, but because we dare to innovate and dare to walk our own path.”

He put on his glasses and looked at Marcus.

”In the seventies, America monopolized large computers. The German government said: Let’s buy from America; developing it ourselves is too slow and too expensive. But a group of engineers insisted on making their own computers—the result was the birth of Siemens’ 7000 series. Although it was a commercial failure in the end, we accumulated talent and accumulated technology.”

”In the eighties, the Japanese semiconductor industry rose. America suppressed Japan, and Germany took the opportunity to develop its own chip industry. We didn’t pick sides; we walked our own path.”

Karl stood up and walked to the conference room wall. Hanging there was a black-and-white photo: Munich in 1945, in ruins. Beside it was a color photo: Today’s Munich, prosperous and modern.

”Ruins can be rebuilt, but if the backbone is broken, you can never stand straight again.” The old man turned around. ”I cast this vote for the Shennong platform, for autonomy.”

8:7.

The resolution passed.

Marcus closed his eyes and let out a long breath.

But the war was not over yet.