The possibilities of a closer relationship between Sun Microsystems Inc and the giant Fujitsu Ltd emerged last week, as Fujitsu’s interest in the Sparc processor as a strategic product became more evident. An inside source claimed that talks between the two companies had already begun, although the likely terms of any agreement that might eventually result remain unclear. The source claimed Sun is now working closely with Amdahl Corp 46% owned by Fujitsu – and that a two-phase announcement will be forthcoming. The first phase will involve a high-performance server project using the Texas Instruments Viking superscalar implementation of the Sparc, possibly an amalgam of Sun’s Galaxy multiprocessor project and the remains of Amdahl’s aborted Key Computer Laboratories effort. The second phase will be an extended technology agreement and software exchange, with Amdahl supplying multi-processing hooks and system reliability features it views as essential. Amdahl’s long-term interest is said to be in Sun’s Gallium Arsenide developments, codenamed Brut and thought to be under the control of Sun’s director of advanced development Dave Ditsel in conjunction with Vitesse Semiconductor Corp – chips are expected around the end of 1992. According to the source, Fujitsu not only overruled a decision by Amdahl’s engineering department to go with the MIPS chip, in favour of the Sparc, but also influenced ICL’s 1987-88 decision to use the Sparc, considering it a pre-requisite before take-over discussions could begin – in the mid-1980s, ICL, too, had been leaning towards the MIPS chip. Now Fujitsu wants to ensure it has access to all of the necessary enabling technology so that it can compete effectively with IBM’s potentially explosive Rios RISC effort. Fujitsu, Amdahl and ICL are also amongst those touted as companies waiting at the front of the queue to take a stake in AT&T’s Unix System Laboratories. Sun’s motivation for talks with Fujitsu could be its insatiable appetite for cash, which can no longer be satisfied by turning to AT&T now the company has the full 20% stake in Sun under the agreement between the two: it is possible that Sun will try for a similar deal with Fujitsu, allowing it to retain control. Another possibility, given AT&T’s bid for NCR and cooling relationship with Sun, is that Fujitsu might buy AT&T’s stake. Sun chief executive Scott McNealy said he always replied no comment to rumours, but did describe Fujitsu as an aggressive Sparc partner. Fujitsu in Japan told Unigram’s Tokyo office that its policy was not to comment on rumours, but other Japanese sources thought the story could well be correct adding that the Sun-Fujitsu-ICL combination, with Fujitsu as the manufacturing nexus, could challenge IBM.