Chapter 1657 The boomerang is whistling

a few days later.

TSMC headquarters, inside the chairman's office.

Morris Chang picked up the remote control, his fingertips lingered on the plastic buttons for a moment, and finally pressed the power button.

On the opposite wall, a huge LCD screen slowly lit up.

Then he skillfully switched to an archived column of the international news channel.

Morris Chang himself soon appeared on the screen.

Just over a week ago, inside the New York Times studios.

"I must emphasize," he said steadily on the screen, "that I became a citizen of the United States as early as 1962. My career and values are deeply rooted in the freedom and opportunities that this land offers."

This was in response to the host's question about identity.

Soon, the interview turned to the part about semiconductor production.

Morris Chang is fully confident about this: "TSMC's position in the semiconductor manufacturing industry is the result of decades of technological accumulation, continuous investment, and operational excellence. 'Leading and irreplaceable'—I believe this is the most accurate description of the current situation."

The scene switches to the host asking with a professional, inquiring expression:

"What do you think of the recent ban on semiconductor technology from China? Will this have a significant impact on TSMC's business?"

"Business decisions are always based on practical considerations. As for the ban itself, I would like to say that if we—meaning the entire rules-based advanced technology alliance—really want to stifle their semiconductor development, then the other party is doomed to be powerless."

He even paused for emphasis, looking directly into the camera and repeating clearly:

"Yes, there is nothing I can do."

"Ugh……"

A low sigh sounded in the empty office.

In reality, Morris Chang muted the TV, and the talkative figure on the screen turned into a silent pantomime.

Many details in the studio are pre-designed, and some programs are even performed according to the script from beginning to end.

But those assertions, which were made with strong confidence and even a sense of superiority, were indeed what he truly thought at that moment.

And now, just half a month had passed, and the boomerang that had been thrown was coming towards the back of his head with a whistling sound that tore through the air.

He sat up straight, somewhat tiredly, and picked up the report on the corner of the table that had been jointly submitted by the head of the publicity department and the vice president of technology research and development just a few hours ago.

Opening the cover, the first page was the picture that had already spread all over the Internet.

A hand wearing an anti-static glove is holding the corner of a green substrate with precision tweezers. On the dark gray silicon wafer in the center of the substrate, the four laser-etched numbers "1515" are clearly visible, while the characters below are obscured by the liquid metal thermal conductive material.

Over the past few days, speculation surrounding this image has spread like wildfire.

Technology forums, financial media, and social media are awash with insider stories: TSMC outsourcing through secret channels? Samsung engaging in backdoor deals? There's even a bizarre story about Huaxia obtaining a mysterious EUV light source.

At first, even Morris Chang himself was full of doubts and sternly ordered several of his most trusted executives, including General Manager and Co-CEO Liu Deyin, to conduct the most thorough cross-audit of all contracts, logistics documents, production records and even capital flows related to Hua Xia over the past six months, even if they were extremely marginal.

And now, this report, which embodies TSMC's highest-level internal review capabilities, is spread out before him.

He flipped directly to the last page and his eyes fell on the bold words in the "Conclusion" section:

After a comprehensive review of all production records, logistics documents, order systems, communication logs, and financial transactions for all TSMC production lines worldwide (including R&D and verification lines and confidential production lines) from midnight on December 2014, 12 (when the sanctions took effect), and cross-verification with core equipment operation logs, we have confirmed the following:

TSMC has not produced, delivered, or has any unfulfilled orders involving the "Kirin" or "Ascend" series 7nm process chips in any form (including but not limited to direct foundry, indirect transfer, technology licensing, equipment leasing, mask provision, personnel support, etc.).

No unusual records, instructions, or fund flows were found that indicate any of the aforementioned violations. All verified information indicates that the "1515" batch of chips circulating online had no connection to TSMC.

Below the report are the handwritten signatures of all core members of the audit team, as well as the final confirmation seal of Liu Deyin as the general person in charge.

Morris Chang threw the report back onto the table with a dull thud.

The report's cold conclusion eliminates all illusions of luck.

In the past, there were only three companies in the world capable of mass-producing equivalent 7nm process chips: TSMC, Samsung, and Intel.

The latter two were the most active promoters behind the sanctions order and had no large-scale commercial outsourcing agreements with China in advanced processes.

After eliminating all impossibilities, the only remaining answer, no matter how unbelievable, can only be reality—

China has achieved independent mass production of 7-nanometer process chips through some unknown technical path.

Perhaps ASML and Zeiss have finally mastered the EUV light source they swore was impossible, or perhaps by combining ArF immersion lithography with more extreme multiple exposure technology, they have squeezed the potential of DUV to the equivalent of 7nm...

In short, no matter which one it is, it means that Washington's attempt has completely failed.

It is no longer possible to stifle the development of the other party's semiconductor industry using the equivalent 7nm process.

What’s even more frightening is that this ban has cleared the biggest market obstacle for Huaxin International, allowing the other party’s originally immature process technology to have full room to play.

"Cultivating competitors and then giving them the market... TSMC has become the second-biggest clown..."

Morris Chang didn't know that there was someone even more wronged, Musk, who was secretly complaining about his wrongdoing.

He believes that the "biggest clown" is Ao Guanhai himself, who insisted on pushing for the ban.

But soon, things were about to change.

After thinking for a moment, Morris Chang picked up the phone and pressed the call button:

"Deyin, come to my office immediately."

A few minutes later, Liu Deyin hurriedly pushed the door open.

"Chairman."

"Deyin, sit down." Morris Chang pointed to the chair across from him and pushed the report in front of him. "You and I both know the conclusion. The situation is ten times worse than the worst-case scenario we anticipated."

Liu Deyin nodded silently without reading the report.

As the leader of the internal investigation, he was already familiar with the conclusion.

"We're facing a huge problem right now," Morris Chang said, his voice quickening. "SMIC has broken through the 7nm process, and even under the pressure of the ban, they've taken advantage of the market space we vacated and quickly established themselves."

Liu Deyin nodded:

"Yes, Chairman. The technical department and intelligence analysis team also believe that the possibility of the other party possessing independent mass production capabilities is... very high. Although the specific technical path is unclear, the results are already in sight."

"Therefore, our previous strategy needs to be adjusted, and immediately!"

Morris Chang's tone was firm:

"Immediately organize your staff and draft a detailed report and analysis as quickly as possible. Focus on the massive impact and instability the current semiconductor ban has had on the global supply chain, particularly the negative impact on TSMC's own business and long-term competitiveness. The core demand is to suspend or at least significantly relax the ban on Chinese semiconductor foundry services!"

Liu Deyin wasn't surprised by this direction, but he was also well aware of the sensitivity involved, so he asked, "Chairman, is the report's focus...on the damage to the industry economy and the increased supply chain risks, or...on the changes in the competitive landscape brought about by the other party's technological breakthroughs?"

He needed clearer instructions on the wording and strength of the report.

Just as Morris Chang was about to explain in detail the focus and logic of the report, the black phone on the table, which was used exclusively for important external communications, suddenly began to ring sharply and continuously.

His expression changed slightly, he raised his hand to signal Liu Deyin to be quiet, and then picked up the receiver.

A familiar female voice came, speaking quickly and clearly:

"Morris (Zhang Zhongmou's English name), based on the latest intelligence assessment and administrative authorization, Washington will dispatch a team of specialists to conduct a comprehensive compliance review of TSMC. You must provide full and unconditional cooperation."

There was no greeting, no explanation, and not even a chance for Morris Chang to ask or respond.

The phone was hung up cleanly, leaving only a monotonous busy tone.

The air in the office froze instantly.

Morris Chang held the receiver, frozen in place, his expression turning from solemn to pale.

Liu Deyin's heart sank to the bottom, and the ominous premonition seemed to be real.

Before the two of them could recover from the sudden shock, another internal phone on Morris Chang's desk began to ring frantically. He almost subconsciously picked up the receiver.

"Chairman! I'm Jin Hanming!" The head of the security department's voice was unprecedentedly hurried and panicked. "There's a team of people with credentials from the Bureau of Industry and Security and the National Security Agency, and a... a document with the seal of the federal court..."

"They forced their way through the main entrance of our headquarters. Security personnel tried to stop them, but they were extremely adamant, claiming to have the highest authority... I..."

Jin Hanming's voice stopped abruptly. A noisy pushing sound and a few vague but harsh English scoldings came from the receiver, and then the call was rudely cut off.

"Hello? Hanming? Hello?!" Morris Chang shouted twice into the busy tone, but of course there was no response.

He raised his head and looked at Liu Deyin, who also had a pale face.

At this moment, there seemed to be a commotion outside the door.

And it was approaching from far away, rapidly approaching the top floor office.

"Bang! Bang! Bang!"

The heavy door of the office was slammed hard, the sound was urgent and carried a kind of arrogance that did not allow for rejection.

At the same time, the secretary's panicked voice came from the desktop communicator: "Chairman! They... they forced their way in! I can't stop them..."