Pullout by Philips, ICL's purchase hits Europe's memory-chip study

Article Abstract:

The Joint European Submicron Silicon Initiative (Jessi) is troubled by two announcements that may take the momentum out of the group's static random access memory (SRAM) research project. The first problem for the consortium is the pullout of founding member N.V. Philips. Philips claims the move is part of its $1.51 billion reorganization strategy that also involves eliminating 10,000 jobs. Philips states it will remain involved in research on projects such as logic semiconductors, computer-aided design and HDTV. The move leaves only Siemens AG and SGS Thomson working on the SRAM project. The other obstacle for the Jessi group is the acquisition of ICL PLC by Japan's Fujitsu Ltd. Members of the group must decide whether to exclude ICL because of its ties to Japan.

Research, Europe, Mergers, acquisitions and divestments, Industrial research, Random access memory, RAM (Random access memory), Philips Gloeilampenfabrieken N.V., Consortia, Research and Development, Reorganization, Foreign Competition, ICL PLC (London, England), SRAM, SRAM (Static random access memory), Consortium, Joint European Submicron Silicon Initiative

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Wrong way to save chip industry

Article Abstract:

The industry and government plan to subsidize the US production of semiconductors will not work; the market is too small and unimportant to save. The hoopla over US Memories Inc, a consortium of seven computer manufacturers looking to create a US DRAM manufacturing market, is wasted energy. Inducing US corporations to stay in an industry in which they cannot make a profit is bad business sense. Dependence upon foreign sources for DRAMs is not the best method, but neither is dependence on foreign oil. DRAMs actually represent just one-third of all semiconductor revenues. A growing proportion of the market is in smarter chips, whose larger profit margins can absorb higher US production costs.

Economic aspects, Forecasts and trends, International trade, Subsidies, DRAM (Dynamic random access memory), DRAM, Industry Analysis, Government Funding, Government aid, US Memories Inc., U.S. Memories Inc.

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Unitrode chip ban imposed by U.S.; loss for year seen

Article Abstract:

The US Department of Defense has issued a 'stop shipment' order covering shipments of semiconductors from Unitrode Corp, due to quality-control concerns. Earlier in Dec 1989, Unitrode had imposed a halt in their own shipments, and will continue to do so until the company and the government have completed an investigation into the matter. The semiconductors that were banned are used in military products, accounting for 25 percent of Unitrode's $163.3 million in 1988 sales. On the New York Stock Exchange, Unitrode shares closed at $5.875, down 25 cents per share. The company does not know how long the investigation will take.

National security, Semiconductor chips, Integrated circuits, Laws, regulations and rules, Quality control, Distribution, United States. Department of Defense, UTR, Distribution Management, Government Regulation, Unitrode Corp.

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