I have a debt of 3 trillion, and my creditors are begging me not to die.

Sihai Electronics released its pre-prepared chip price list early this morning, covering everything from the most commonly used 28nm chips to the high-end 3nm chips, and even the ultra-high-end 2nm chips specifically designed for large-scale AI applications. It includes chips for mobile phones, computers, and other electronic products, as well as industrial products such as automobiles and refrigerators – practically everything you could want.

For example, a Qualcomm Snapdragon 8 Gen3 chip costs 200 Eagle Coins, while the same-spec Sihai chip has more powerful performance, but its unified retail price is only 29.9 Eagle Coins.

Why is it stuck at 29.9 Eagle Dollars per piece?

According to relevant data, the cost of a single Qualcomm Snapdragon 8 Gen3 chip is approximately 200 Dragon Coins, which is less than 30 Eagle Coins.

Sihai Chips' selling price is their cost price, so how can they compete?

The current cost per chip for Sihai Chip is around 150 Dragon Coins. As production increases and economies of scale reduce costs, the cost per chip is expected to drop to around 100 Dragon Coins. The profit comes from this cost advantage.

Once Sihai Chip has crushed Qualcomm, Nvidia, and others, it can gradually raise prices. At that point, foreign companies will have no choice but to accept the price increase, just like Chinese companies did before.

To avoid foreigners complaining, Sihai Chip even listed the chip's cost in detail, including the entire process from design to packaging, transportation, and storage. The cost of each step is clearly stated. It also listed the approximate range of basic income and actual take-home pay for employees in different positions at the chip factory, working hours, social welfare benefits, etc. It also included the cost of living and currency purchasing power in Jiangcheng area, and made detailed comparisons with Europe and the United States.

With this detailed list, foreigners have no grounds to complain about employee salaries and working hours, because Sihai Chip's employees are better off than employees of any other foreign industrial company.

The list was immediately reprinted and reported by major media outlets, and netizens rushed to express their blessings and envy.

"My goodness, these chips are dirt cheap! Doesn't that mean phone prices can be drastically reduced? Chips are 85% cheaper now, so a phone that used to cost 3000 can now sell for just over 1000, right?"

"As expected, we still have to produce them ourselves. How much money did those foreigners make off us before? That was all our hard-earned money. The money that mobile phone manufacturers make from selling a single phone isn't even a fraction of what they make from selling chips."

"Thank you, Mr. Yang. This is the significance of our own technological progress, from which everyone can benefit. This is also the significance of supporting domestic products. If we don't support them during their development stages, how will they have the opportunity to truly develop? Those who always praise others, don't you feel ashamed now? Actually, you are just like those who go abroad. You go abroad when things are good, and now that our country has developed well, you shamelessly try every means to come back. In short, you run away when you need to work hard to build the country, and come back to enjoy the benefits once the country is well built."

"To be honest, I'm really envious of this salary. I really want to move to Jiangcheng and settle down, then work hard to get into Boss Yang's company. That way, I won't have to worry about anything for the rest of my life. Only by being Boss Yang's employee can I have a life. Being an employee of other bosses is just about surviving."

With chips at rock-bottom prices, fast-moving consumer goods like mobile phones will naturally see significant price reductions as well.

The first company to announce a price reduction was Loongway, because they were already "short of chips" and could decide who to buy chips from at any time based on the actual situation.

When Yang Chen briefed domestic manufacturers, Longwei directly signed a supply agreement with Sihai Chip. From now on, all of Longwei's mobile phones and related products will use Sihai chips at bargain prices, which will naturally reduce costs significantly and lower prices by about 30%.

For example, the Mate XTs Extraordinary Master was originally priced at 17999-21999 Dragon Coins, but now it has been adjusted to 12999-15999 Dragon Coins, a significant price reduction.

Other domestic mobile phone brands have also lowered their prices, but Xiaomi has not followed suit because they have stockpiled a lot of Qualcomm, Samsung and other brands of chips. If they were to follow suit and lower their prices so drastically now, they would not make any money on the mobile phones and other products that they have already produced or are currently producing.

However, Luo Jun is discussing countermeasures with executives and shareholders, and it is highly likely that he will sacrifice this year's performance to follow suit with price reductions.

With domestic mobile phone brands drastically reducing their prices, it's natural to see that foreign brands like Apple are overpriced.

At this time, the fruit company held an emergency meeting overnight to discuss countermeasures.

President Cook angrily cursed, "Damn Yang Chen, why did you set the chip price so low? Our costs are higher than their selling price, how are we supposed to compete?"

The vice president said, "It's okay. We don't make money from selling chips. Our main profit comes from end products. Besides, the A-series chips we use are unique, so we don't need to follow suit with price reductions. We've spent so many years cultivating Apple users in China. We can even sell a SIM card ejector tool for 60 yuan. They don't care how high the phone price is. We can continue to sell at the current price, or just make a token price reduction of about 5%."

The others nodded in agreement with the vice president's statement. High-end products require users to be trained. For example, the CEO of Zhong Xuegao expressed a similar idea, and recently the owner of Baiguoyuan also expressed a similar idea, that users need to be trained to adapt to high-priced products.

The only problem is that other brands failed to adapt, but the fruit company succeeded.

Kurk nodded and said, "I think we should just lower the price by 5%, and then launch the screen cleaning cloths that we planned to use, raising the price to 20 Eagle Dollars each. Anyway, our users will buy them, and we can make back the profit from the price reduction on the cleaning cloths."

"genius!"

"Ha ha……"

At this time, Nvidia was also holding an emergency meeting.

Fruit companies can maintain their total profits by offering perfunctory price reductions and launching new products, but Nvidia cannot.

Nvidia's main business is chips, and this time Sihai Chip directly impacts chip companies like it.

Wang Wenxun was extremely agitated at this point, and his face turned red from yelling.

"What a load of rubbish! His terminal price is lower than our cost price, how the hell are we supposed to compete? I've studied his cost list carefully, and there's not a single flaw. Their ordinary workers live better than our engineers, fuck!"

Wang Wenxun was exhausted from yelling, so he stopped to drink some water and calm down.

Others began to share their opinions.

"Currently, it's definitely impossible to make low-end products. Their prices are simply too low. No matter how much we cut performance and reduce costs, we can't reach their level. Our only hope lies in high-end chips, especially the 2nm and 3nm chip market, where we still have a chance." "But the demand for high-end chips is relatively small. The biggest demand is for 7-28nm chips. Giving up this market would be tantamount to abandoning the company. Yang Chen's goal is clear: to drive other companies out of business with low prices, so he can raise prices at will and make huge profits. We absolutely cannot back down, not even for the lowest-end chips."

"Everyone understands the logic, and everyone can talk the talk, but we also have to be realistic. We really can't compete in the low-to-mid-range market anymore. We can't afford to lose money to compete with them, can we? Even if we were willing to compete at a loss, we couldn't sustain it for long. They can make money, and they won't be afraid of this competition going on forever, while we can only lose money for so long."

"Fair competition has no chance of surviving under Yang Chen's control; we can only resort to political means. We need the government to announce that our companies and allied countries are not allowed to purchase Sihai chips, so that no matter how cheap Sihai chips are, it won't make a difference."

"It seems this is the only option left. Sigh... I never thought we'd end up like this. Let's contact Intel, AMD, and other companies and go to the White House together. Now, only political means can save us."

Wang Wenxun immediately contacted the CEOs of companies such as Intel, AMD, and Qualcomm, who flew to Washington, D.C. overnight and went to the White House to petition early the next morning.

Two hours later, the White House held its routine press conference.

When asked by reporters about Sihai Chip's big move of supplying the world at rock-bottom prices, the spokesperson took the opportunity to announce the bald eagle's countermeasures.

“We believe that every commodity should have its due price. Chips are high-tech, high-end products, and their prices should be kept at a reasonably high level to incentivize companies to continuously research new products. If they can't even recover their costs, who will continue to invest in research? Therefore, from a long-term perspective, excessively low prices are a serious detriment to the industry.”

"We have no right to interfere with how much Sihai chips are sold for, but we demand that our companies and allies share the same goals and resolutely oppose low-priced chips. Therefore, we will explicitly prohibit Sihai chips from entering the United States, and once discovered, we will impose the most severe penalties on the relevant companies and responsible persons. At the same time, we demand that our allies follow our policy, such as Japan, South Korea, Europe, and other countries and regions. If our allies do not follow our policy, we will impose a 200% tariff on them, effective immediately!"

Foreign media reporters at the scene immediately booed, expressing their resistance and contempt for the bald eagle's hegemonic behavior.

But the bald eagles don't care, after all, they're used to it.

The reporters could only boo a few times and couldn't do much more.

Following the press conference, the U.S. Ministry of Commerce and the Ministry of Industry and Information Technology simultaneously issued announcements, disseminating the spokesperson's words in the form of an order. They also contacted relevant departments in countries such as Japan and Japan, requesting them to follow up on the U.S. policy.

The United States has become notorious for betraying its allies in recent years, so those allies dare not speak out against it and can only comply, successively introducing relevant policies to restrict the development of chips from all over the world.

However, every policy has its own countermeasures.

The whole world knows that Sihai chips have good performance and are cheap. How could manufacturers from various countries resist the temptation of profits?
For example, Sanxing, which had already cleared out its inventory and equipment, directly had Sihai Chip help with OEM production. They used Sihai Chip's technology and processes, but put Sanxing's brand logo on the packaging.

Because the two countries are geographically close, the chips that Sanxing obtained in this way were actually cheaper than those they produced themselves. This meant that, given that South Korea did not allow Sihai chips to enter the market, Sanxing chips could seize the entire chip market by offering discounts under some pretext and earn more money than before.

Yang Chen's sales champion status led California Governor Nelson to prepare a chip company at Yang Chen's suggestion.

By having Sihai Chip manufacture their own chips under its brand, even if they are sold at half the price of comparable products from companies like Nvidia, the profit margin is still over 400%. What more could you ask for?

The Bald Eagles thought that by banning Four Seas Chips from entering their market, they could protect companies like Nvidia. But this wasn't the first time they'd experienced Yang Chen's methods; doing this was simply giving Nvidia a suspended death sentence.

Nelson called Yang Chen.

"Mr. Yang, everything is ready. Please ship the goods to me as soon as possible. We'll just use air freight; the shipping cost won't make a difference."

"Haha... Don't worry, we can delay the delivery of chips for everyone else, but yours must be delivered on time and with guaranteed quality. You're my sales manager, after all. If I don't pamper you, who else should I pamper?"

"Haha..." The two of them burst into laughter, genuinely enjoying themselves.

Then Nelson added, "So how do you think I should set the price?"

Yang Chen chuckled and said, “It needs to be attractive enough, but not too low, otherwise the U.S. government will definitely stop you, or even investigate you. My suggestion is to price it similarly to Nvidia's products of the same specifications, but offer discounts in other ways. For example, give a 10% discount for orders of 100 chips or more, a 20% discount for orders of over 1000 chips, and so on, until the price drops to your lowest expected level. If the federal government investigates you, just say that a new company needs to seize the market, and sacrificing profits to gain market share is normal business behavior. Then, use your networking skills to make sure that all the Smith commissioners at various levels are well-fed and clothed, and they won't touch you. As long as it's U.S. people selling chips, it doesn't matter who's selling them, right?”

Nelson laughed heartily and said, "Mr. Yang is truly experienced. I know what to do. We'll airfreight directly to the Mosaic factory and start making big money. Haha..."

On the other hand, Infineon, a European semiconductor company, has been secretly having Sihai Electronics manufacture memory modules, CPUs, and other products under its own brand. Now that Sihai Chips is coming on strong, they naturally can't miss out.

Infineon CEO Mario called Yang Chen.

"Mr. Yang, everything is ready on our side. You can ship the goods to us now. Also, I have a request: I hope you will only provide OEM services for us, and not for any other companies. We want to capture the entire European market. Is that alright?"

I'm not afraid of my partners setting conditions; I'm afraid they won't dare to set conditions.

For Yang Chen, having his partners set conditions means he can, in turn, set conditions for his partners.

"This... doesn't seem quite right, does it? It's putting me in a difficult position. You want to make more money, and so do I. But doing it only for one company is definitely not as good as choosing a partner in each country. After all, your company has limited resources, and it's impossible to take care of every country completely. You agree, right?"

"Mr. Yang, please rest assured on this point. Our position in Germany and Infineon in Europe ensures comprehensive coverage of every country. If you agree, we can increase our procurement prices by 20%. How does that sound?" (End of Chapter)