Chapter 192: Targeted Wealth Transfer

Jiangjin Group, besides wanting to expand into home appliances and mobile phones,
also planned to build a semiconductor factory in Germany, but repeatedly encountered setbacks. Behind these setbacks was Deutsche Bank.
Deutsche Bank's aim was to protect the European companies it had invested in.
Jiangjin Group, on the other hand, was trying every means to break through their blockade and extend its reach inside.
"We've expanded our operations significantly—mobile phones, smart home appliances, and other businesses—it looks impressive on the surface, but the foundation is hollow. That foundation is chips."
Qin Han's expression turned serious.
"But this thing is our Achilles' heel. Our lifeline is entirely in someone else's hands."
"During the chip shortage a few years ago, we had orders and production capacity, but no chips. We could only watch helplessly as the entire group's production lines came to a standstill.
I've had enough of that! I made up my mind long ago that Jiang Jin's lifeline must be in our own hands."
"So you want to get into wafer foundry?" Su Hao asked bluntly.
"Hey, talking to smart people is so much easier!" Qin Han praised.
"No matter how loudly we shout about designing our own chips, we still have to find someone to manufacture them in the end.
The problem is, global production capacity is concentrated in the hands of a few companies, and we have absolutely no bargaining power.
Being held hostage is a minor issue; the key question is, do you dare hand over your core design blueprints to them?"
At this point, he thought of the behemoth from Taiwan—TSMC.
That company only does contract manufacturing; it never produces its own products, emphasizing "neutrality."
"That's quite normal. Put yourself in the shoes of those European automotive giants, like BMW and Mercedes-Benz. Would you entrust the chip designs that determine the future of your cars to a Japanese company that manufactures both chips and cars?
Forget about tampering with the production line; even if they cut off supplies, raised prices, and prioritized their own products under the pretext of 'capacity constraints,' what would you do?"
Therefore, TSMC's core principle can be summarized in one sentence: 【We will never compete with our customers.】
"So, my plan is to start from scratch and replicate TSMC.
We'll go to Europe and establish an independent wafer foundry, ostensibly completely separate from the Jiangjin Group.
We won't touch the most cutting-edge mobile phone chips; we won't directly compete with TSMC."
"We'll establish ourselves in Europe, specializing in specialty chips for automotive electronics and industrial automation."
Qin Han's eyes gleamed.
"TSMC's strategic focus is on consumer electronics, on these 'small-batch, high-reliability' industrial markets.
For specialty chips, service and response speed aren't actually top-tier.
That's our opportunity.
By integrating local technologies and companies, we can not only better serve those overlooked European customers, but also, in turn, ensure the security of our group's own supply chain!"
"Is it also under the banner of 'never competing with customers'?"
"Exactly! Many companies will definitely be hesitant at first, but as long as our customized services, response speed, and logistics efficiency are all superior, do you think those European automakers and industrial giants won't be tempted?"
"When you say logistics efficiency, are you referring to the shipping company under Fanghuan Shipping?"
"Of course!" Qin Han smiled like a cunning old fox.
"Think about it, a brand new European chip company, plus the massive orders our Jiangjin Group will receive in the future!
Brother Su, this is a huge boon for Fanghuan as well. Jiangjin Group will be your biggest core customer!"
It truly is a win-win situation. Fanghuan Shipping will gain a super-stable, incredibly reliable client. This deal is a sure thing.
"However, all of this is just wishful thinking now."
Qin Han's smile faded, his eyes sharpening.
"All of this is predicated on one thing—Deutsche Bank must collapse!"
This financial behemoth, known as "Too Big to Fail" (TBTF), is the biggest obstacle to Jiangjin Group's expansion into Europe.
Only when it crumbles can Jiangjin Group, this tiger, break free of its cage and conquer new territories on the European continent.
Qin Han suddenly grinned mischievously, looking at Su Hao meaningfully:
"Besides, your Fanghuan Investment bought up all the CDS on the market, just waiting for Deutsche Bank to go bankrupt so you could make a fortune, right?"
"You knew that?" Su Hao was slightly surprised.
"Of course! The first person that popped into my head when I heard this rumor was you!"
Qin Han stared at Su Hao with certainty,
"I knew it, you planned all of this from the very beginning!
Step by step, each step meticulously planned, the ultimate goal was to push this behemoth into the abyss!"
Currently, Fanghuan Investment's Deutsche Bank CDS position has a nominal value of 30 billion.
They not only swept up all the existing CDS on the market, but also signed betting agreements with major investment banks, and even issued new CDS contracts.
But… what if Deutsche Bank survives?
Then Fanghuan Investment will have to pay a whopping 900 million in premiums every year until the contracts expire.
In that case, all that hard-earned money has gone down the drain. Maybe even more.
"Moreover, your crazy buying spree of CDS has blown up its spread.
It's like pushing Deutsche Bank further into the fire.
With such a high interest rate spread, panic has spread, causing widespread anxiety in the market. Now, there are signs of a bank run at Deutsche Bank.
Hey, that's what banks fear most."
"However, the German government will definitely not stand idly by. They will absolutely protect Deutsche Bank." Qin Han stood up, walked to the window, and his tone became heavy.
"This thing is too big. Once it collapses, the entire European financial system will be finished, potentially triggering a global financial tsunami.
But if it doesn't collapse, our Jiangjin Group's European market will struggle, and we might be slowly worn down.
Now is the moment that will determine the fate of our Jiangjin Group for the next ten years!"
Su Hao could sense the determination in Qin Han's words. It was clear that he had staked everything on this European expansion.
"I wish Jiangjin Group every success," Su Hao said calmly.
"Oh?"
"I said it before, compared to foreign companies, I'd much rather see Chinese companies reach the top of the world."
This was his honest opinion.
Of course, there was an even more direct reason—he couldn't let his 30 billion yuan bet go down the drain.
"Alright! Now that you've set the stage, the job of wielding swords and dancing on it is up to me!
Fortunately, Deutsche Bank has made too many enemies over the years, relying on the German government's backing to offend countless people."
Qin Han slapped Su Hao heavily on the shoulder.
"You've already brought your prey, bound hand and foot, right to my doorstep.
If I can't even cut off his head, I might as well quit being chairman!
I've already contacted several international financial groups.
We'll join forces to ensure that when Deutsche Bank collapses, its corpse can be quickly divided and absorbed by us, minimizing the market impact and preventing a second Lehman Brothers!"
He knew many people feared that Deutsche Bank's collapse would trigger another global financial tsunami.
What he needed to do was work with his allies to turn this tsunami into a controlled, targeted "wealth transfer."