AT&T Microelectronics-Espana SA is planning to invest another $85m over the next five years at its Madrid applications-specific integrated circuit manufacturing plant. The company, 80% owned by AT&T Co in partnership with Telefonica de Espana SA, 20%, produced the first integrated circuit exclusively designed, manufactured and tested in Spain during the fourth quarter of last year. The Spanish chip, called DCD, was custom-designed for Telefonica’s computer systems subsidiary and will be used in a local area network currently under development. Jointly designed by the chip company and Telefonica, it enables speech and data to be mixed on one telephone line, supporting duplex transmission and rapid file transfer. According to George Foyo of ATT Microelectronics, Spanish companies have hitherto had to have their circuits fabricated abroad as there was very little manufacturing capacity until AT&T arrived in Spain in 1985. Since its arrival AT&T has invested $176m in the plant, and the extra $80m will be spent on new equipment and technology. The company is forecasting sales of $8m this year, rising to $170m by 1991, when it is expected to become profitable.
