Both sides strive to find the biggest benefit, with each side paying the other 50%.
This is a cut in half. Look how much profit is in this.
But Xing Baohua can still fight for it.
They could easily make at least a billion.
As for how much more profit AVIC can make from him, I don't know, but he definitely will.
Putting aside other things, once the wafer fabs in Shanghai start operating, in addition to producing CPUs, they will also have a production line for memory chips.
Once the engine speed is increased, the cost of memory will decrease. Then we can directly equip AVIC with solid-state drives.
The price difference here is made up by saving money on each individual memory chip.
After signing the letter of intent and seeing off the AVIC representatives, Xing Baohua turned to Lei Jun, who had followed the negotiations throughout, and asked, "What do you think?"
Which aspect are you referring to?
"cost!"
"I feel like we've lost out!"
"?"
These words surprised Xing Baohua, as he had never made a losing deal before. Even if he claimed to have lost money, he was actually still making a profit.
You might think that those stores that constantly shout "sell at a loss" are actually doing so. In reality, they're just making a profit through high volume and low margins.
These are all schemes.
“Tell me your reasons, where did we lose out?”
"Leaving aside their construction costs, just consider the transportation itself. How much is the sheet metal plus fuel worth? If you factor in the construction costs, their costs over the years can actually be averaged out to a great extent."
"And when we factor in equipment costs and depreciation expenses, our costs are high."
Xing Baohua nodded in agreement, then sighed and said to Lei Jun, "You need to learn more about rice."
"I'm trying to understand it."
"What I showed them were all experimental equipment. You have to understand that things that come out of the lab are the most expensive, bar none. But in business, costs are measured by the factory. Time plus production volume can bring costs down even further."
"I'll take you to see the Shanghai wafer fabs sometime, to see their production capacity."
"What is the capacity of Shanghai's wafer fabs to produce sub-chips?"
Xing Baohua shook his head and said, "No, but memory chips can."
After Xing Baohua's analysis, Lei Jun seemed to have figured something out and happily gave Xing Baohua a thumbs up.
What is used in the largest quantities? Various chips. Quantum chips are a main processor that controls the computing speed. However, what is actually used in large quantities is not this thing, but memory, hard disk databases.
This is all massive stacking! Given Xing Baohua's level of greed, he wouldn't be able to sell at cost price unless he added ten yuan to each chip.
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