Lessons linger as U.S. Memories fails: chip venture unable to win wide backing
Article Abstract:
U.S. Memories Inc, an unusual US effort at cooperation in the computer industry, has collapsed. U.S. Memories was an alliance intended to challenge Japanese domination in memory-chip manufacture, a business that some see as strategically important. U.S. Memories was envisioned as a secure, stable source of dynamic random-access memories (DRAMs), not burdened by a preoccupation with short-term earnings goals, a concern that some say is the biggest failing of American management. The consortium's promoters sought to build an instant giant that would produce DRAMs in huge quantities; the consortium's enemies said that U.S. Memories would violate anti-trust laws and stifle entrepreneurial creativity. In the end, there were not enough supporters to raise the capital that was needed. U.S. Memories is dead, says its president, Sanford L. Kane.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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U.S. Memories to abandon bid for chip venture
Article Abstract:
US Memories will abandon plans to make dynamic random-access memory (DRAM) chips. The proposed alliance failed to get enough commitments of capital to go through with the planned joint venture, which would have challenged Japanese dominance in memory-chip production. According to David Teece, a professor at Walter A. Haas School of Business at the University of California at Berkeley, this failure signals an American 'lack of vision.' American industry is fragmented, says Teece, and the US is competing with an industry that is much more coordinated. US Memories Pres Sanford Kane met on Wed, Jan 10, 1990, with representatives of the consortium's founding members and other potential investors. On friday, in a telephone interview, Kane called the week 'very frustrating.'
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Apple isn't investing in U.S. Memories, chip group formed to battle Japanese
Article Abstract:
Apple Computer Inc reports that it will not invest in U.S. Memories Inc, the consortium established in June, 1989, to help US companies regain part of the semiconductor market from Japan. U.S. Memories is looking for major investors to help them compete in the $10 billion market for dynamic random access memory chips (DRAMs). Apple's withdrawal may have some effect politically, because the dominate computer company was seen as a strong ally to U.S. Memories. But U.S. Memories says that it will announce other investors soon, and other companies will be encouraged to join. Apple explains that there is no advantage for them to join with U.S. Memories because Apple has a policy of buying chips from a wide range of suppliers all over the world.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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