August 7, 1976
National's efforts in add-on memories should provide them some super background
in solving important systems problems and, based upon IBM's price structure,
should be profitable. Although competition exists from Intersil/AMS, that
organization will be pretty busy and probably will not make any important new
market pushes in plug-compatible field.
National's watch difficulty has been fairly well reported and ICE believes
that none of the problems thus far uncovered should be long-term; i.e., more
than a few weeks long. Although this does put a niche in quarterly revenues, it
should not affect National for very long. ICE still harbors some concern that
hybrid and assembly problems on a broader scale exist.
Fairchild will have difficulty in retaining its better personnel based on the
present salary schedule and it's likely that some adjustments would have to be
Penisten should have quite an impact on AMI's mode of operations, since it's
vastly different than Texas Instruments. His semiconductor background was
primarily gained at Texas Instruments.
SECOND SOURCING - FAIRCHILD, MOSTEK
Second sourcing will become more important for some of the complex circuits such
as 4K RAM. More and more, effective second source and even a third source is a
requirement for a major purchase order. The large system houses have been
flexible in using different parts compatible at the board level, but they are
tiring of the extra bother and expense.
Kapton is fairly well known in the industry and is the basis for many of the
gang-bonding procedures such as the one developed by General Electric, and now
utilized by TI. Previous techniques bonded the punched Kapton to a copper foil
with an epoxy adhesive.
It is difficult to see how a semiconductor house could absorb very many systems
people, although the microprocessor bit-slice products need lots of applications
help. The MM systems business (minicomputer) has been advertised very little,
and the industry is generally unaware of the effort.
© 1976 Copyright Integrated Circuit Engineering Corporation