CH130 | Heir

Various types of semiconductors are used in mobile phones.

In particular, manufacturing smartphones required memory semiconductors as well as communication semiconductors.

To develop CDMA-based smartphones, it was essential to use Qualcomm’s chips—this was hardly an exaggeration.

Qualcomm’s technological prowess would allow it to dominate the CDMA market.

And before smartphones became mainstream, securing a favorable patent agreement with Qualcomm was crucial.

That’s why I flew directly to the U.S.

As soon as I arrived, I headed straight to SAVE Investment to check on the progress.

"How are the negotiations with Qualcomm going?"

Team Leader Han had flown to the U.S. a few days before me.

Together with David, he had been handling all matters related to Qualcomm.

"Acquiring Qualcomm’s shares wasn’t difficult. Last year, their stock peaked at $88, but after a slight rebound, it’s now sitting around $35."

"We also acquired some Qualcomm shares during the last Wall Street gathering, right?"

"Yes, we currently hold about 12% of Qualcomm's shares."

Qualcomm was one of the biggest casualties of the IT bubble.

If things continued as they had in my past life, its stock price would drop to the low $10 range in the next few years.

"What does the ownership structure look like?"

"Qualcomm itself holds just 20% of its shares, while the remaining 80% is split between Wall Street investors and retail traders."

"So, if we secure just 8% more, we'll own a larger stake than Qualcomm itself."

"It’s possible to buy more right now. Wall Street is eager to offload IT stocks at this point."

Right now, Qualcomm's stock was at $35.

But once the smartphone era fully took off, its value would at least triple.

There was absolutely no reason not to buy.

"Since we're buying, let’s go all in. Secure a 50% stake."

"Even though Qualcomm’s stock has dropped significantly, its market cap is still over $40 billion. We’d need at least $16 billion to raise our stake to 50%."

"Don’t we have enough liquidity for that? The profits from our IT derivatives trading alone should cover it."

"That’s true… but wouldn’t it be too risky?"

"It might be tough for a while, but in a few years, it will prove to be an invaluable asset. So don't worry—just focus on securing the shares."

"Understood. I’ll make the rounds on Wall Street and acquire as many shares as possible."

Once smartphones hit the market, no amount of money would be enough to secure Qualcomm’s shares.

But right now, in the aftermath of the dot-com bubble burst, acquiring them was still possible.

* * *

A few days later.

I arrived at a quiet sandwich shop near Washington, D.C.

It was already late, and the place was locked up, but I knocked on the door anyway.

Knock, knock.

The sound was soft, barely audible—yet, a response came almost immediately.

Click!

A burly man opened the door.

His physique was far too muscular for a typical chef.

"He’s waiting inside."

Following his lead, I stepped into the restaurant.

At one of the tables, someone was eating.

"Apologies for the late hour. This was the only time I could spare, so I hope you understand."

"Not at all. In just a few days, you'll be the President-elect of the United States. Of course, I should adjust my schedule for you."

The man sitting in the restaurant was George W. Bush.

The brutal election battle had left him visibly worn out.

Gesturing toward the seat across from him, he invited me to join him.

"This place has amazing sandwiches. My father introduced me to it—especially the bacon sandwich, it’s their specialty."

"Then I’ll have the same."

Since it was a simple dish, it didn’t take long for the sandwich to arrive.

With Bush staring at me intently, I had no choice but to take a bite.

It was an ordinary sandwich—just bacon, tomato, and lettuce.

"How does it taste? There aren’t many places in America that make a proper sandwich."

"Thank you for introducing me to a great spot."

"I should be the one thanking you. Without SAVE Investment, my campaign funds wouldn’t have been as secure as they are now. But what made you trust me enough to donate such a massive sum? What if I lose?"

Two days remained until the election.

With the polls still razor-thin, Bush couldn’t hide his nervousness.

"SAVE Investment has never made a bad bet—whether in stocks, bonds, futures... or people."

"So you’re convinced I’ll be the next President?"

"Why else would I be here at this hour? If I weren’t meeting the future President of the United States, I wouldn’t have come at all."

"You sound more confident than my own staff."

Bush chuckled, but my words seemed to ease his mind.

"Thanks. That actually makes me feel a little better."

For Taewoo Group to expand globally, it needed America’s support.

No, even just avoiding U.S. interference would be enough.

That’s why I had invested heavily in Bush.

He had to win.

"I’ve already prepared a gift for your victory."

"Haha, already? You’re ahead of yourself. But now I’m curious—what is it?"

"Taewoo Group has decided to build a new $10 billion manufacturing plant in the United States. We’ll construct it in whatever location you prefer."

Taewoo Motors and Taewoo Electronics both needed new factories.

With U.S. sales on the rise, building a new American plant was inevitable.

And if we were going to do it anyway, why not boost the next President’s image while we were at it?

"That’s an incredible gift. I’ll make sure to return the favor properly."

"Your gratitude is more than enough."

My meeting with Bush ended shortly after.

The next time we met, it would likely be at his inauguration.

The next meeting was with Apple.

After traveling to California, I arrived at Apple’s headquarters.

Steve greeted me with an awkward smile.

"You must be tired from the long trip. And I’m sorry—iPhone’s launch keeps getting delayed."

"It’s not too late yet."

Steve’s perfectionism was remarkable.

Even as Apple’s stock plummeted due to the dot-com bubble, he continued to postpone the iPhone’s release to upgrade its performance.

"I can’t delay it any longer. We’ll unveil it at next year’s CES (Consumer Electronics Show)."

"When do you plan for the official launch?"

"By June at the latest."

"That leaves less than eight months. The production timeline will be tight."

"That’s a bit of a concern, but we should be able to meet demand through outsourced manufacturing."

Steve had already signed a contract with a Chinese OEM (Original Equipment Manufacturer).

If I got involved, Taewoo Electronics could take over production.

But since manufacturing wasn’t profitable, I chose to step back.

Apple only paid 3% of its revenue for outsourcing, making it an unattractive deal for Taewoo Electronics.

However, supplying components instead of manufacturing was a different story—that was where the real profit lay.

And that was exactly why I was here.

"We’d like Taewoo Electronics to be the exclusive supplier of semiconductors for the iPhone."

"Taewoo Electronics has a semiconductor division?"

Steve raised an eyebrow.

"I was planning to contract with Samjin Electronics, Hyundai Semiconductor, and a Japanese firm."

"We’re in the process of acquiring Hyundai Semiconductor. The deal should be finalized by the end of the year."

"If that’s the case, then it’s possible... But I can’t sign an exclusive contract. I need to diversify risk."

It was a sound strategy.

Sourcing parts from multiple suppliers was a safeguard against disruptions.

If a fire or disaster struck a single supplier, production could grind to a halt.

But if multiple sources were involved, production could continue, even if at a slower pace.

"I completely agree, Steve. Even if we acquire Hyundai Semiconductor, there’s no guarantee that Taewoo Electronics can produce high-quality semiconductors. Signing an exclusive contract would be a risky move."

Steve nodded.

Then, he narrowed his eyes.

"So why did you make such an offer?"

"For Apple’s future."

"Taewoo Electronics doesn’t manufacture mobile phones. That means we’ll never compete with Apple. But Samjin Electronics and Japanese semiconductor companies do make their own phones."

Technology leaks.

Steve had poured every ounce of Apple’s capability into developing the iPhone.

Some of those technologies were covered by Taewoo Electronics' patents, and many had originated from my own ideas.

Yet, if Apple signed contracts with competing manufacturers,

it was only a matter of time before information leaked.

Even if they couldn’t copy the entire technology, they would inevitably learn key aspects of smartphone manufacturing.

"You make a good point. Right now, competitors can’t produce anything close to the iPhone… but eventually, they will."

"Taewoo Electronics never competes with its customers. Otherwise, why would they trust us with their business?"

Never competing with customers.

That wasn’t my original idea.

It was a principle I had borrowed from a Taiwanese semiconductor foundry.

And it was also the future strategy for Taewoo Electronics' semiconductor division.

"Are you planning to develop Taewoo Semiconductor into a foundry company?"

"That’s right. Apple is just the beginning. We also plan to sign an exclusive contract with Qualcomm soon."

That was why I had been buying Qualcomm’s shares.

If I could secure exclusive deals with both Apple and Qualcomm,

I could instantly turn Hyundai Semiconductor's losses into profit.

"I understand your vision, and I agree with your reasoning. But can Hyundai Semiconductor be trusted? Even in terms of market rankings, they don’t even make the top 10."

"If we’re only looking at revenue, that’s true. But their technology is far from lacking. And Taewoo Electronics plans to invest over $5 billion in semiconductors annually."

"Hmm… Alright. We’ll give Hyundai Semiconductor the priority contract. But if there are any performance issues or production delays, I’ll have no choice but to sign with other suppliers as well."

I had secured Steve’s commitment.

There were conditions attached, but I was fully confident that I could meet them.

In reality, I didn’t even need to persuade Steve.

Since I owned the majority of Apple’s shares, I could have easily forced an exclusive contract with Taewoo Electronics.

But I chose not to.

That would be like killing the goose that lays the golden eggs.

"There won’t be any issues with performance or production capacity. Even if Taewoo Semiconductor incurs billions in losses, I will keep my promise."

"Are you planning to manufacture semiconductors with money alone?"

"The semiconductor industry requires massive investments of both time and money upfront. If necessary, I’m even willing to use my personal assets."

Steve gave a satisfied smile.

He had a rough idea of the scale of my wealth.

"That’s a reassuring answer. Then I’ll leave the semiconductor issue in Taewoo’s hands."

He might have thought I was simply relying on money.

But I knew better.

Money and time were crucial, but a single exceptional talent could drive even greater change.