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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

281.0. "Should DEC buy Fairchild?" by SLDA::OPP () Tue Mar 17 1987 18:10

      I read in today's "Boston Globe" that Schlumberger has decided
    not to go ahead with its sale of Fairchild Semiconductor to Fujitsu
    due to U.S. Gov't opposition.  Consequently, a question popped into
    my head:  should DEC consider buying Fairchild?  I don't have a
    good answer but I heard that years ago we considered buying Mostek
    but decided against it.  
    
    Greg
    
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281.1QUARK::LIONELFree advice is worth every centTue Mar 17 1987 19:578
    We did not consider buying Mostek - we were qualifying Mostek as
    a second source of our semiconductor products, but that fell through
    when Mostek did.
    
    DEC management has repeatedly said that we're not in the acquisition
    business, and I think that's fine.  What would we get out of
    buying Fairchild, a semiconductor company that is not doing so well?
    					Steve
281.2Look to the people that run DECHUDSON::PIERPONTWed Mar 18 1987 01:326
    I would suggest a look at the list of Vice Presidents that we have
    and see where they came from. Check the BOD, too.
    
    Do we need to buy Fairchild? Not in my opinion.
    
    Howard
281.3SAUTER::SAUTERJohn SauterWed Mar 18 1987 11:135
    Although Fujitsu has not technically bought Fairchild, it appears
    from the news reports that the two companies will be doing a lot
    of joint ventures together.  They may remain separate companies
    in name only.
        John Sauter
281.4Mostek purchase dates from '77SLDA::OPPWed Mar 18 1987 16:4917
    RE: .1
    
      When I joined DEC in 1977, DEC was manufacturing 4K dynamic RAM's
    at a facility in Worcester leased from Sprague.  The process and
    design for these 4K RAM's was purchased from Mostek.  My cost center
    manager at the time told me DEC had considered buying Mostek, ap-
    parently to acquire its dynamic RAM design and production capability.
    It probably was a wise decision not to buy it, considering the 
    commodity nature of the DRAM business today.  
    
      I suspect purchasing Fairchild would be equally risky.  It is
    my impression that DEC intends to design and build only those
    IC's which it can't get outside or which are too sensitive to
    have designed by a potential competitor.  
    
    Greg