June 5, 1976
AMI (hopefully) will go back to handling custom circuit customers and attract
those people that are interested in creative work of this type. While, at first
glance, this might not appear to be as lucrative as standard products, ICE
believes that, in the long run, having 1,000 custom circuits locked up in a
sole-source proprietary situation is still more valuable. This backlog will
provide AMI a better future than a hot 4K RAM product.
Louay Sharif has had Nitron profitable since last December, although he still
has a number of difficulties under the McDonnell-Douglas umbrella and is
correctly allocating his resources.
Price bombing still plagues the semiconductor industry. There appears to be no
change in the attitude of many with respect to market share. The Harvard
Business School magic of "15% market share minimum" has pervaded the
semiconductor community, without appropriate rules regarding the profitability
of such a penetration.
Synertek has been amazingly successful in spite of a four-split ownership. It
is rumored that some of the owners want to sell their shares, however. An
ownership change with respect to Synertek should be expected.
GORDON NESS ELECTRONIC WATCH
ICE's pleased to receive the publicity on the electronic watch report which will
cover $29.95 (retail) and down watches. A later report will cover $29.95 and
We hear a lot of talk about skipping 4" diameter wafers and moving directly to
5". With the increasing utilization of silicon for solar cells, etc., Monsanto
is probably pretty safe on a basic expansion program.
Rockwell/Collins are tremendously over-facilitated, even for their present
fairly large business. It's also known that Rockwell has lost a great deal of
money in the calculator business. The Collins facility is considerably larger
than Rockwell's (180,000 sq. ft. vs about 40,000 sq. ft.).
© 1976 Copyright Integrated Circuit Engineering Corporation