Despite all the effort now being devoted to semiconductor capital equipment as a result of the creation of the Sematech consortium, the major companies with interests in the field still want out. IBM Corp had to help prevent closure of Perkin-Elmer Corp’s interests after that company moved to shed them, and now General Signal Corp, the Stamford, Connecticut conglomerate that rescued GCA Corp in 1988 when it was floundering in debt and losses (CI No 860), now itself wants out of the business, and says it wants to focus capital and management resources on core operations. It wants to sell the loss-making operation, but warns that the move is likely to result in a $58.2m after-tax charge against earnings. The division lost about $7m or 26 cents a share during the first nine months of 1992, on sales of $135m. General Signal said the estimated charge is expected to cover net losses on sales, potential future operating losses, severance, idle facilities and related restructuring costs. While the semiconductor fabrication equipment industry is in a more healthy state than it was when General Signal bought GCA to add to its existing interests, and US manufacturers have been clawing back market share from the Japanese in significant segments of the industry, it is not at all certain that there will be a queue of would-be buyers.
