Haifeng understood better than anyone:
The Qinglong chip wasn't just a processor.
It was a strategic foothold.
It was compatible, efficient, and powerful—making it the perfect entry point for external licensing.
It wasn't like the A-series, which was tightly bound to China Star's internal systems and OS.
Qinglong was universal.
That made it valuable… and vulnerable.
It could be copied.
Reverse-engineered.
Improved—by companies like Qualcomm.
Haifeng knew time was short.
"They'll borrow from our design, then mass-produce with superior lithography.
We've got one year.
So before the wolves arrived, he had one goal:
Monetize it. Quickly. Ruthlessly.
The Offer
Lei Jun, sitting across from him, wasted no time.
"President Lu, I'll be blunt—what's your price?"
Haifeng smiled.
"Development and R&D costs were high.
So the price is 1,000 RMB (≈ $137.59) per chip."
Lei's eyes narrowed slightly.
He had expected a premium. But 1,000 RMB?
"The manufacturing cost can't be more than 500 RMB…" he thought.
And once China Star ramped up production, the cost would drop further.
Haifeng wasn't being greedy—he was being strategic.
He priced it high to protect his mobile brand.
Why?
Because every unit Xiaomi sold with the Qinglong chip…
…meant Haifeng earned 500 RMB in profit
…and Xiaomi's profit margin shrank
Even with access, Xiaomi would always be playing catch-up.
Lei knew the math. Still, he tried:
"800 RMB (≈ $110.07)—make a friend?"
Haifeng raised an eyebrow.
Make a friend?
I know that line…
He nearly quoted a classic joke:
"Making phones doesn't make money.
The money's in selling accessories."
But he held back.
"800's a little low. We have a lot of mouths to feed.
R&D doesn't pay for itself," Haifeng smiled diplomatically.
Then Lei leaned forward and went all in:
"If you agree to 800 RMB per chip,
I'll place an initial order of 500,000 units."
Haifeng paused.
500,000 chips × 800 RMB = 400 million RMB (≈ $55 million USD)
Not bad for a first deal.
That number didn't just show intent.
It showed respect.
Lei Jun was serious.
Now, the ball was in Haifeng's court.