MICROELECTRONICS NEWSLETTER
August 14, 1976

MONOLITHIC MEMORIES
ICE's economic analysis of MOS companies suggests that it takes at least $10 million a year to break even in this market, and approximately $30 million a year is required to have an optimum P & L possibility. Exceptions might be in specialty areas, but the 4K RAM must compete in volume.

MICROCOMPONENTS
Microcomponents seem to have taken a fairly ambitious position for a small company, becoming a supplier to people like Eastman Kodak for highly specialized bipolar integrated circuits. It is highly underrated and unknown to many West Coast firms, even some of those offering competitive products, but its new 12L direct light-to-frequency converters demonstrate unusual innovation. (Another "unknown" supplying Kodak is Vactec).

SYNERTEK - UNITRODE PURCHASE
We understand that the 20% interest went for $1.25 million. - It appeared to be from Synertek's stock and does not represent a replacement. Thus, none of the four had sold Synertek. Synertek also has some 50-50 joint venture coming up with a Japanese IC manufacturer. Schreiner has so many wheel-deals going, he must have trouble keeping track.

ITAC OPTOELECTRONICS MARKET
There appears to be a slight reduction in the interest in the optoelectronics market with the LED approach. Most people, including the car manufacturers, are looking for something better than the current offerings in either LED or liquid crystal form.

SUNCRUX
ICE's recent analysis, "The Low Priced Digital Watch Revolution," indicates that the potential profits in the watch business are not for either the IC chip supplier or probably even the module maker, but instead the "jewelry" market is probably the most important.

DCA RELIABILITY
DCA Reliability had a good thing going until they overstepped into trying to become a distributor as well as a testing and screening house.

WEMA PREDICTIONS
One of the difficulties in getting accurate bookings number in the length of time and cancellation privileges that a company might have with respect to orders placed.

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Tom Collier, at one point, was working at Motorola International and Bruce Everitt may remember him from those days.