October 16, 1976
AMS - INTERSIL MERGER
There seems to be quite a bit of nervousness on the part of the Intersil
personnel as to what changes might occur after the merger. Overall, the
profitability of Intersil should be increased substantially. Intersil has an
excessive number of senior personnel. Personnel cuts will vary depending on the
programs Ori Hoch intends to implement.
Much of WEMA's confidence was due to the support they got from local industries.
They have not developed to keep up with the highly technical people in Silicon
National Semiconductor continues to show signs of "troop" unrest and of
production mistakes in watches and other products.
WORLDWIDE IC SHIPMENTS
Forecasts are beginning to shape up for 1977 with most companies feeling that
this will be a good growth year for both integrated circuits and discretes.
Most purchasers feel that the silicon material has not been extremely
competitive, and probably will welcome an additional source. Trevor Law reports
silicon consumption is still only 80% of its 1974 peak, which would imply higher
yields and more careful use to avoid wastage.
Hoefler had a scoop only for a few days. MM has reported sales and profits
publically [sic]. This still doesn't save MM from increasing competition on
PROM and microprocessor bit slices, and the product line needs updating. A
surefire improvement in PROM reliability alone would do it.
Harris is riding along on the watch chip boom (including the type that flash
suggestive messages), but for the long term needs to get established in CMOS
microprocessors and RAM. The relationship with Intersil has been helpful, but
SEMI/NITRON SECOND SOURCING
Many cross-license deals these days are made only to bolster user confidence.
The SEMI/GI cross-license had not produced significant second-source product,
any more than the touted Rockwell/National agreement. These agreements are
useless (even dangerous) to the user until actually implemented (or consummated,
if you will).
© 1976 Copyright Integrated Circuit Engineering Corporation