Tech Giants: Starting from Bankrupt Companies

309: Chapter 309 Made in Indonesia 4.06:00 PM, the third round of negotiations.

Li Wanqing walked into the conference room.

She was forty-one years old, wearing a white shirt and black trousers, with rimless glasses. She was the president of Xinghuo Chip and a legendary figure in the Chinese semiconductor industry.

”Mr. President, Xingchen International will build a 28-nanometer chip packaging and testing plant in Karawang, Java.”

Data on the large screen:

Investment: 3 billion USD

Production capacity: 30,000 units per month

Applications: Automotive chips, consumer electronics chips, industrial control chips

Employment: 8,000 direct jobs, 20,000 indirect jobs

Technology: Xingchen International’s mature 28-nanometer process, full-process technology transfer

Joko Widodo asked, ”How long until production begins?”

”By the end of 2020.”

Joko Widodo was silent for three seconds, then smiled. ”The chip plant in Vietnam is also set for the end of 2020. Indonesia must be synchronized with Vietnam.”

Li Wanqing also smiled. ”Mr. President, Xingchen International’s principle is: whoever signs first gets it first. But since you are the first president to come in person, we can deliver to you simultaneously.”

At 7:30 PM, all negotiations were completed. On the long table, three agreements were neatly arranged. Each was fifty pages thick, with the Indonesian national emblem and the Xingchen International logo embossed on the covers.

”Nickel Ore Deep Processing Cooperation Agreement”

”Power Battery Super Factory Agreement”

”chip Packaging and Testing Factory Agreement”

Total amount: 15 billion USD.

Additional clauses:

Indonesia promises that Xingchen International will enjoy priority mining rights in three mining areas.

Xingchen International promises to prioritize the hiring and training of local Indonesian employees.

Both parties will jointly establish the ”Indonesia-Xingchen Industrial Development Fund,” each contributing 1 billion USD to support local small and medium-sized enterprises.

Xingchen International holds veto power over all projects. The funds are provided by the Bank of Indonesia, which will lend 10 billion USD to Xingchen International for the development of the three projects. It is equivalent to Xingchen International borrowing a chicken to lay eggs; they didn’t pay any money themselves, merely authorizing the technology and building the factories.

When Joko Widodo signed, his hand was very steady.

When Su Chen signed, his pen strokes were powerful.

The two exchanged agreements and shook hands.

Flashes of light went off, flooding the entire hall.

8:30 PM, a private dinner.

Only eight people: Joko Widodo, Su Chen, Lin Wan, Bahlil, Zhang Zhen, Li Wanqing, and two interpreters.

On the table were a few simple dishes: steamed leopard coral grouper, blanched shrimp, garlic greens, and a bowl of rice.

Joko Widodo raised his glass.

”Mr. Su, this toast is to the future of Indonesia.”

Su Chen raised his glass.

”To cooperation, to trust.”

The two drank it down in one gulp.

Joko Widodo put down his glass and looked at Su Chen earnestly.

”Mr. Su, Indonesia is the largest country in ASEAN. A population of 270 million, 17,000 islands, and the world’s largest nickel reserves. We once thought this was enough.”

He paused.

”Later, we discovered that having resources alone is not enough. Australia also has mines, but they are rich, and we are poor. Why? Because they have technology.”

Su Chen nodded.

Joko Widodo continued, ”Today, with these three agreements signed, Indonesia finally has its own technology. Nickel ore becomes batteries, batteries are installed in cars, and cars are sold all over the world. This cycle previously only belonged to developed countries.”

He stood up and raised his glass again.

”Thank you, Mr. Su. Thank you for giving Indonesia a chance to become a developed country.”

Su Chen also stood up.

”Mr. President, Xingchen International does not bestow opportunities. Xingchen International only provides choices. It was Indonesia that chose Xingchen International, not Xingchen International that chose Indonesia.”

The two clinked glasses.

The next day at 10:00 AM, both parties held a signing press conference in Shenzhen.

On the stage, Joko Widodo and Su Chen stood side by side.

Off the stage, reporters from over three hundred global media outlets aimed their cameras at them.

Joko Widodo’s voice was transmitted to the world through simultaneous interpretation:

”Today, Indonesia and Xingchen International have signed three historic agreements. Nickel ore deep processing, power batteries, and chip packaging and testing—a total investment of 15 billion USD.”

He paused, his voice rising:

”But these are not just three contracts. This is the starting point of Indonesia Manufacturing 4.0.”

The large screen displayed Indonesian and English:

2025: Become one of the world’s top five battery producers

2030: Become the largest electric vehicle manufacturing base in ASEAN

2035: Achieve autonomy in the semiconductor industry chain

Joko Widodo turned to Su Chen.

”Mr. Su, thank you for giving Indonesia this opportunity.”

Su Chen smiled.

”Mr. President, it is not an opportunity I gave. It is Indonesia’s own resources, own determination, and own choice that created this opportunity.”

Thunderous applause broke out off the stage.

11:00 AM, Jakarta Stock Exchange.

The opening bell rang.

On the large screen, the Jakarta Composite Index opened with a gap—up 4%.

Mining stocks hit their daily limit collectively.

In the trading hall, cheers were deafening.

A trader excitedly waved his hands: ”Indonesia! Indonesia!”

The person next to him patted his shoulder: ”Stop yelling, buy quickly!”

2:00 PM, Jakarta Presidential Palace.

In the Presidential Palace hall, hundreds of officials, entrepreneurs, and scholars watched the live broadcast of the Shenzhen press conference on the large screen.

When Joko Widodo announced ”Indonesia Manufacturing 4.0,” applause exploded.

Minister of Industry Agus said to the person beside him, ”Ten years ago, we went to Japan to beg for technology, and they wouldn’t give it. Five years ago, we went to South Korea to beg for investment, and they made us do low-end work. Today, Xingchen International has moved the entire industrial chain here.”

The person next to him nodded: ”The times have changed.”

4:00 PM, Jakarta, LG Energy Solution Indonesia factory.

The president of LG Energy Solution Indonesia, Kim Soo-hyun, urgently convened the management team.

More than a dozen people sat in the conference room, all of them Korean. The atmosphere was so heavy it felt like it could drip water.

”Headquarters called,” Kim Soo-hyun’s voice was a bit hoarse. ”Contact Xingchen International immediately and apply to join their battery ecosystem.”

Someone was confused: ”We are competitors...”

Kim Soo-hyun smiled bitterly.

”Xingchen International’s battery costs are 25% lower than ours, and their technology is two generations ahead of ours. Now the Indonesian government is leaning completely towards Xingchen International. If we don’t join, we’ll just be waiting to be eliminated.”

The conference room was silent.

Kim Soo-hyun stood up and walked to the window.

Outside the window was the LG Indonesia factory area. Three factory buildings, 5,000 workers, producing enough batteries to equip 300,000 electric vehicles annually.

”Send an email to Xingchen International,” he said. ”Just say that LG is willing to open up technical cooperation, on the condition that our market share in Indonesia is preserved.”

7:00 PM, Lin Wan pushed open the door to Su Chen’s office.

Su Chen was standing at the window, watching the lights of Shenzhen. The nights in this city are never quiet.

”The Indonesia contract for 15 billion USD is signed. The LG Indonesia factory sent an email applying to join the Xingchen International ecosystem. The Jakarta Composite Index rose 6%, and mining stocks hit their daily limit collectively.”

Su Chen nodded.

”Reject LG’s cooperation application.”

Lin Wan was stunned: ”Reject?”

”They want to exchange technical cooperation for market share. But we don’t need their technology.” Su Chen turned around. ”Tell LG, if they want to stay in Indonesia, they should honestly act as our foundry. Accept Xingchen International’s patent licensing, produce according to Xingchen International’s standards, and products will be sold by Xingchen International. Profit split is 30/70; they get 30%, we get 70%.”

Lin Wan smiled: ”Will they agree?”

Su Chen also smiled.

”They will agree. Because if they don’t, they will have to exit the Indonesian market.”

He walked back to the window.

”Next step, how will we cooperate with Thailand and the Philippines?”

Lin Wan shook her head: ”Let them consider it themselves. Joko Widodo is a sensible man; he knows that trading resources for technology is only the first step. True development must rely on oneself.”

Outside the window, the lights of Shenzhen Bay stretched to the horizon.

Further away were the South China Sea, the Java Sea, and every shipping lane leading to Indonesia.

A new industrial powerhouse is being born.