Because YiFu doesn't deal directly with TMSC, he deals with someone that deals with someone that deals with someone else. He probably pays three times what they actually cost from the fab, and someone else in the process makes sure that twice as many chips get produced, etc...
I remember he told on a video that one must know people (have personal contacts) in China to make business. Now it turns out that he actually doesn't. Instead, he knows people who know people who know people.
Chinese people called it "interpersonal relationship". It is the most important factor of running a business in China.
In the rest of the world we call it 'mob ties,' 'organized crime,' or simply 'racketeering.'
Plot Twist: Yifu is not alive, someone else is posting on Yifu's account.
Mindfuck: the entity extorting Avalon is ASICminer; Friendcat is actually a ruthless PLA princling!
This is by far the best drama around, bar none!
I'm looking forward to tomorrow's season finale of All My Bitcoins even more than the new Breaking Bad on Sun.