Chapter 174 When it rains, it pours



Cars sped past on the road, kicking up clouds of dust.

Su Wu's mood at this moment was as turbid and scattered as the smoke and dust.

Gao Qiang's words were somewhat incomprehensible to him.

130-nanometer chips are currently the most advanced chip technology, so why are there no orders?

Even if they don't need chips, they can still manufacture integrated circuits for various signals on their own.

But why haven't I received any orders for a whole week?

Is it because Gao Qiang and his team lack professional skills, or is there another reason?

He couldn't understand it; he really couldn't understand it.

Regardless of the reason, his situation would likely be even more difficult if he didn't order any food.

Currently, Ruyang Group has invested 300 million yuan in municipal engineering projects and acquired 100 million yuan worth of bank-mortgaged properties, which brings its total investment to 400 million yuan.

Even if there's no immediate concern about the Modern City project, he hasn't secured any funding whatsoever.

Moreover, the chip factory can't afford to waste time every day; they can't afford to.

Su Wu arrived at Ruyang Electronics Technology Company with extremely mixed feelings.

As soon as he opened the meeting room door, he saw a cloud of blue smoke drifting out.

At that moment, Gao Qiang and the others were sitting there smoking, almost setting themselves on fire.

"Smoking so much without opening the windows, are you all planning to commit mass suicide?!"

With a curt remark, Su Wu sat down in the seat that had been arranged for him.

As soon as he sat down, he subconsciously lit a cigarette for himself.

There's nothing I can do, I'm so worried.

"Tell me what happened. Our chips should be fine."

"Our chips are definitely fine. They're blind to the value of a gem, those foreign-worshipping bastards!"

No sooner had he finished speaking than Gao Qiang retorted somewhat indignantly.

Upon hearing this, Su Wu raised an eyebrow, sensing that something was amiss.

Gao Qiang organized his thoughts and began to explain.

“We visited many manufacturers this week, and even small workshops in Shenzhen that make counterfeit mobile phones were not spared.”

"But they don't understand chips at all, and they don't believe we have the production capacity. They completely see us as fraudsters."

"In their view, it's simply impossible for China to produce chips, let alone 130-nanometer chips. We..."

He recounted the experiences of his business team like a wronged young wife.

The others also wore a wronged expression, as if they had suffered a great injustice.

Su Wu finally understood.

Ultimately, it's because his company, Ruyang Electronics Technology, has no reputation in China at the moment, and no one is supporting him.

And since they were using high technology, they created a huge dragon without any foreplay, which no one believed.

He never imagined that the domestic environment would be so bad, with not even a single person willing to try.

It's important to know that their chip costs are much lower than internationally.

Similarly, the integrated circuits they produce are cheaper than those internationally.

He and Gao Qiang and others conducted detailed calculations.

Chips or integrated circuits of the same quality are priced 20% lower than imported ones.

And this is all under the condition that they guarantee the same profit.

Even if you buy their products at international prices, you can save 5%-10% on shipping costs. Isn't that a great deal?

Even so, no one is buying it?

Su Wu felt increasingly aggrieved and gritted his teeth as he spoke.

Didn't you tell them about our price advantage?

"After I told them, things got even worse. Several acquaintances who wanted to buy a batch of parts on credit gave up immediately after hearing the price."

"Damn it, why is this happening?"

"You get what you pay for. And in their view, even if we could produce it, the price should be higher."

"What the hell... what kind of logic is this?"

When he asked, Gao Qiang felt even more aggrieved.

Gao Qiang is, after all, an industry insider, and he must have some connections.

As a result, the cheaper price made those people back out.

Su Wu didn't understand this; he truly didn't understand it.

However, Gao Qiang and the others understood exactly why.

He gave Su Wu another bottle before explaining, somewhat helplessly.

"President Su, our technology is too advanced right now, and it hasn't been verified or endorsed, so it's normal that no one believes it."

"After all, there were quite a few tech scams a few years ago, and now people don't believe in them anymore."

"Moreover, given the current level of technology in China, even if we could manufacture the same product, the cost would often be higher, which is a fact."

Upon hearing this, Su Wu felt as if the times had played a cruel joke on him.

Although it sounds a bit far-fetched, it really makes sense.

This is no longer the era of the Dragon Kingdom in later generations, where it was unrivaled and seemed to have a cheat code.

The current technological backwardness is a true reflection of the domestic environment.

Currently, China spends approximately 200 billion US dollars annually on chip imports.

As development progresses, this number will continue to rise until 20 years from now.

On the one hand, this shows that China has the world's largest market; on the other hand, it also shows that China's market is being exploited.

Although the cost is ultimately borne by the consumer, these costs will eventually be passed on to the consumer.

However, China also has the world's largest consumer market, which is beyond doubt.

In his previous life, Su Wu felt a pang of heartache when he looked at the annual statistics in America.

At that time, he fantasized about how wonderful it would be if one day he could bring back all kinds of advanced technologies.

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