Chapter 159 Giant Group

In 1991, the annual semiconductor chip production of Longteng Technology's semiconductor factory reached 5 million. Longteng University's Long Language was fully popularized, and other related high-tech companies were born in Shenzhen one by one. There were more than 500,000 technicians in the IT industry busy in Shenzhen alone. Although, from the perspective of scientific research power, Shenzhen is far from leading the world trend. However, the region with the fastest development of IT technology in Asia is Shenzhen. Like Silicon Valley, Shenzhen is full of vitality. Every day, people take new patents to attract venture capital investment, and intellectuals start from scratch and start businesses.

Although Beijing's Zhongguancun is known as the most high-tech enterprise, it seems dead compared to Shenzhen, which is changing with each passing day. Even recently, Sitong Group, the largest private high-tech enterprise in Zhongguancun, has moved its headquarters to Shenzhen. After all, the political atmosphere in the capital is too strong and does not have the soil that allows enterprises to develop freely like the Shenzhen Special Zone.

At this time, Shenzhen was praised by Chinese and foreign media, "Oriental Silicon Valley", "the paradise for technicians", "there are no less than Silicon Valley in Shenzhen every day", "Shenzhen attracts technicians from all over the world to come here to look for opportunities"...

Shi Yuzhu came to Shenzhen in 1989 with 4,000 yuan, and soon integrated into the entrepreneurial army. He relied on a set of m-6401 desktop word processing system and used the software copyright as collateral to advertise first in the "Computer World" newspaper and then pay, with a promotion budget of 17,550 yuan. In half a month, Shi Yuzhu received the order, and his sales exceeded 300,000 in 2 months.

Having tasted the sweetness of advertising, Shi Yuzhu not only paid off the advertising fees he owed, but then he also trolled all his funds to continue to invest in advertising. Four months later, Shi Yuzhu has become a rich man worth 5 million. Regarding the speed of making a fortune among all the self-made people in China, Shi Yuzhu is second only to Zhang Bixuan, who cheats on information ahead of the times. When the information he has mastered is not ahead of the times, being able to achieve such achievements can only mean that he is really a genius.

However, Shi Yuzhu has to thank Zhang Bixuan. Because, if Longteng Technology had not been able to ignite the spark of China's IT industry without Longteng Technology, his achievements would have been absolutely not as great as they are now.

Due to the unprecedented rapid development of the entire Chinese IT industry. In 1991, Shi Yuzhu established the Giant Group in Zhuhai, and the actual assets of the Giant Group exceeded 100 million. Shi Yuzhu, who was addicted to the bright prospects of the IT industry, was not as interested in health products and pharmaceutical industries as in history, but instead wanted to be the Blue Giant of the East.

"Our Giant Group wants to become a giant in the IT industry!" Shi Yuzhu said at the meeting during the establishment of the group, "We must aim to surpass Longteng Technology!"

Seeing that the members of the Giant Group had a look of surprise on their faces, Shi Yuzhu was very satisfied because he attracted the attention of the backbone members.

Of course, Shi Yuzhu is not an ignorant person, so after the bragging slogan was shouted, he smiled and said, "Before defeating Longteng Technology and becoming a real giant, we must cooperate with Longteng Technology. We must order their chips and produce our Giant-branded computers! Although Longteng Technology is now the largest IT company in Asia, according to the development speed of our giants, the future belongs to us!"

Hundreds of employees of Giant Group are in full swing, as if they will soon surpass Longteng Technology, which is the inevitable result in the near future.

According to the agreement between Longteng Technology and Intel, Longteng Technology helps Intel produce 3 million chips each year, with a foundry cost of US$5 each. The remaining chips are handled by Longteng Technology itself. However, they have to be labeled as "intel inside" unless the patented technology used by the chip is not provided by Intel.

Therefore, in addition to obtaining US$15 million in foundry fees every year, Longteng Technology can also sell more than 2 million chips that have been completed. Therefore, Longteng Technology is well deserved to be the largest semiconductor chip factory in Asia. Every year, after various domestic PC manufacturers digest Longteng Technology's 286,386,486 and other chips, they can only sell a small part of them in China, but most of the computers are exported to Southeast Asia, Japan, and even Europe and the United States.

Because Longteng Technology's chips are about the same quality as Intel's original chips, but the price is more than 30% cheaper, foreign imported chips basically only account for about 10% of the Chinese domestic market, and most of the imported chips are risc chips used in servers. PC chips have basically been monopolized by the products of Longteng Chip Products Factory.

Originally, China was still in the planned economy era. The relevant departments felt that there were already hundreds of PC production lines in China and would no longer easily approve production approval documents to an unplanned enterprise, so a large number of unplanned enterprises could not get PC production approval documents anyway. It is precisely because unplanned enterprises could not get production approval documents that Lenovo left Hong Kong in 1988 and has since gone to a completely different path from domestic PC production companies such as Founder and Great Wall.

However, with the booming development of the IT industry in Shenzhen Special Economic Zone, it is difficult to obtain PC production approval documents, which will inevitably kill the vitality of the entire IT industry. The leadership team of Shenzhen began to seek the conditions for reducing PC production approval documents from the central government, so that a large number of unplanned enterprises can participate in the IT industry.

Giant Group benefited from this factor to obtain PC production approval documents that were impossible for unplanned companies a few years ago.

In early March 1991, the spring was shining brightly. The freshman Giant Group held a press conference and announced that it would invest 50 million yuan to build a PC production, which aroused the interest of many Shenzhen journalists. You should know that although Shenzhen is more likely to obtain PC production approval documents, many PC companies have emerged like mushrooms after a rain.

However, most PC companies, like the "workshop factories" and "home-style workshops" in the early 1980s in the United States, are very small in scale. Young men who know technology and have strong hands-on ability dare to set up a PC factory with tens of thousands of yuan in capital, collect parts and assemble a computer, and then shout and sell the products like vegetable markets.

It is rare for Giant Group to invest more than 50 million yuan to build a regular factory at the beginning.

Longteng Technology is also very happy to cooperate with large-scale PC manufacturers, and soon signed a contract with Giant Group for 50,000 chips.
Chapter completed!