newsbytes@clarinet.com (01/18/90)
SANTA CLARA, CALIFORNIA, U.S.A., 1990 JAN 15 (NB) -- U.S. Memories, the project aimed at rebuilding the competitiveness of American semiconductors, has gone down in flames after failing to garner enough industry support. U.S. Memories had been envisioned as a way for the U.S. to take back some of Japan's 75 percent world market share of memory chips, or DRAMs. Sanford Kane, president of the consortium, said that despite initial industry support, the project did not draw the investment from semiconductor firms nor the commitment from computer companies which it needed. It needed $400 million in debt and $350 million in equity. That goal had not been achieved despite a year-long fund raising campaign. Even more importantly, only two major computer firms had agreed to purchase large quantities of the products U.S. Memories would produce -- IBM and Digital Equipment. Such large chip-buyers as Apple Computer and Sun Microsystems had publicly refused to participate. U.S. Memories Chairman Wilfred J. Corrigan put it bluntly, "The problem is our inability to work together and cooperate. We are like an all-star team... We don't work together very well. Others keep winning while we keep getting knocked off, one by one." The member firms were IBM, Hewlett-Packard, Intel, Advanced Micro Devices, LSI Logic, Digital Equipment, and National Semiconductor. One reason observers think the idea floundered recently was because last year's shortage of memory chips ended, and along with the increase in supply came a decrease of concern for America's slipping technological leadership. (Wendy Woods/19900116) -- This, and all other articles in the clari.nb hierarchy are Copyright 1990 by the Newsbytes Information Service. Only paid subscribers may access these articles. Any unauthorized access, reproduction or transmission is strictly prohibited. We will reward the first provider of information that helps us stop violators of this copyright. Send reports to reward@clarinet.com.