We are all reborn, who wants to be the richest man?

Chapter 634 The Development of the Computer Industry

The Audi Group's computer integrated manufacturing system is a huge hit around the world.

Not to mention the car companies, what ordinary people are thinking is how can a broken software system make so much money?
"Wall Street really doesn't miss any opportunity, but this is a good thing for us.

The tide will eventually recede and they won’t understand the importance and impact of the Internet.”

Thanks to a computer-integrated manufacturing system, the Audi Group’s market value increased by more than $10 billion in just one week.

During this week, Wall Street's hype was overwhelming, and the average valuation of all companies in the entire Internet industry increased by 10%.

Everyone knows what happens next, which is to go public and cash out.

However, Wall Street now pays attention to the Internet industry but does not think highly of it. This can be seen from the various Internet companies they have invested in and those that have let go that have an impact on future fields.

Luo Nianzhong could understand that it was the wild age of the Internet. After all, there was no one else like him in the world.

This incident of Audi Group has allowed the world to see a new direction for corporate development, which is the combination of traditional industries and emerging industries.

This has happened before. The oil industry introduced computer systems very early on, but this is the first time that the Audi Group's computer-integrated manufacturing system has made such a thorough move towards intelligence.

For car companies, they will no longer need to conduct extensive testing when designing car models in the future, because a lot of data has been tested by predecessors, which will save a lot of costs.

Why is it called Computer Integrated Manufacturing System instead of Computer Integrated Automobile System? It means that this is a system created for the manufacturing industry.

This is true for Audi Group's car manufacturing system, and it is also true for other industries.

"But through this incident with the Audi Group and the financial statements of last year that will be announced by listed companies soon, Wall Street will react soon."

Luo Nianzhong did not deny what Welch said. It was just that the computer industry was developing too fast.

"It doesn't matter. We've already established the momentum. Even if Wall Street wants to start a new business, it won't be possible. We are far ahead in technology and patents."

The New Year's Eve of 1993 was considered a late year, as the traditional Chinese festival, which was also the most important festival, slowly began on February 1994, 2.

After the New Year, major listed companies around the world began to announce their 1993 performance reports. However, before that, an article on computer and communications statistics in Hong Kong Financial Magazine made investors around the world focus their attention on this emerging industry which had only been developed for a few years.

First, the Hong Kong Financial Magazine announced the top ten countries in the world in terms of the number of computers. The first one is naturally the United States, the world's largest economy, with 8730 million computers, and the number of computers per thousand people reaches 337.

Whether it is the number of computers owned or the number per thousand people, it ranks first, which also reflects the strong consumption power of the United States.

The second place is the island country, with 1610 million computers.

Germany ranks third, with 1380 million computers.

The fourth place is Britain, with 1110 million computers.

Fifth place: France. The romantic French have not been able to escape the attraction of this emerging technology and own 940 million computers.

The remaining six to tenth places are Italy, Canada, Australia, Denmark and Finland. Even Finland, which ranks tenth, has 580 million computers.

However, this is the total amount. The number of computers per capita is another story.

This time, the island country did not even make it into the top ten. It was replaced by Hong Kong Island, which ranked second with 284 computers per thousand people, just behind the United States.

Next is Australia, which has 247 computers per thousand people, ranking third.

Canada, Norway, Finland, New Zealand, Denmark, England and Switzerland follow in order. According to data from Hong Kong Finance Magazine, in 1993, the number of computers in the world exceeded 2.31 million, of which 6300 million were multimedia computers, an increase of 1992 million from 1400. It is expected that more than 1994 million computers will be added in 2000.

The annual PC production is expected to reach 6500 million units, and it is likely to reach an average of million units per year within three years.

As soon as this report came out, the stock prices of computer manufacturers and corresponding computer accessories manufacturers soared.

However, the market value of these companies has increased significantly, but none of them has grown as rapidly as one company, that is Microsoft.

In less than a year and a half, Microsoft, which unified the operating system market, doubled its market value to $930 billion.

Relying on Microsoft's market value and its efforts in the mid- and low-end PC market, IBM once again won the title of the world's largest company by market value, reaching 1270 billion US dollars.

The second-ranked company is also closely related to the computer industry. It is Far East Chip, which firmly occupies the mid-to-high-end chip market. Its market value exceeded 1142 billion for the first time, reaching billion US dollars.

Last year, Intel launched the Pentium series, which was supposed to dominate the market. Moreover, this Pentium has significantly better performance than the original one. For example, its process technology has reached 0.6 microns, which is much more advanced.

Unfortunately, Intel originally thought that it could narrow the gap between itself and Far East Chips, but it didn't expect that Far East Chips would come up with a bigger trick than Intel did.

In 1993, Far East Chip officially launched a new generation of Longteng chip. In addition to using the world's most advanced 250-nanometer manufacturing process, the biggest improvement came from technology.

Previous chip interconnection technology used aluminum interconnection, but the first generation of Longteng chips uses the latest copper interconnection technology developed by Far East Chip. The resistance of copper is 40% lower than that of aluminum, which results in a processor speed increase of at least 15% and a significant increase in reliability.

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Thanks to this technology, the gap that Intel originally thought was narrowing was ruthlessly widened. According to reports from the U.S. media at the time, governments and relevant departments of various countries will have to adopt high-end chips from Far East Chip, otherwise the funds invested in this era of information reform will be meaningless.

On March 3, Honor Computer released its performance report for last year, with annual PC sales reaching a staggering 8 million units. According to data from the Hong Kong Financial Magazine, Honor Computer has captured nearly 1764% of the global computer market share.

This made Honor Computer's market value, which had been slowing down, soar again. Not only did it enter the top ten in the world's market value for the first time, it also reached the fifth place.

Of course, this ranking is not accurate, because it is updated in real time on the website of Hong Kong Financial Magazine, and is not the 1993 global corporate market capitalization list after rational analysis. The market capitalizations of many companies are inflated.

In addition to Honor Computer, another computer company also took advantage of this wave of wealth, and that is HP in the United States.

Honor Computer, IBM, and HP, after years of development of the PC industry, these three PC manufacturers are now the three largest PC manufacturers in the world, and more than 7% of the global market share is in the hands of these three companies.

The continued disclosure of annual reports of Internet semiconductor companies and the surge in stock prices and market capitalization, combined with the data updated on the Hong Kong Financial Magazine website every morning, have really added fuel to the fire in the technology industry.

The most direct way to reflect the popularity of the technology industry is through money.

In mid-March, IBM announced that it planned to acquire its former rival DEC for $3 billion in order to better develop the PC and minicomputer industries.

As soon as the news came out, there were exclamations everywhere. Although DEC's current revenue is good, it has long lost the glory of competing with IBM. The market said that DEC will inevitably be lost in the PC torrent. Unexpectedly, IBM was willing to acquire it for US$62 billion.

"This is because IBM is not giving up. The rise of Microsoft and IBM's financial improvement in the past two years have made them start to expand."

Luo Nianzhong also learned the news at the first time. IBM's acquisition of DEC was not simply to increase market share, but was aimed at the high-end computer field.

The reason why DEC has been declining year by year is not because of its product positioning.

From the very beginning, DEC had never thought about lowering the prices of their products to a level that most consumers could afford. It was okay before, but after the rise of Honor Computer, DEC's business went from bad to worse.

IBM acquired DEC more because it valued the brand. After all, DEC is a time-honored Western high-end brand, and consumers subconsciously accept its high value, but whether they will choose it is another matter.

Therefore, Luo Nianzhong feels that this acquisition by IBM will plunge the blue giant, which has finally recovered, into a deeper quagmire.

(End of this chapter)