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February 24, 1988


By CBR Staff Writer

Plessey Semiconductors is looking for at least UKP8m a year in new business from a ‘first right of refusal’ chip supply agreement it is negotiating with the planned GEC-Plessey Telecommunications Ltd joint telecomunications venture. The contract is agreed in principle, and the UKP8m matches the business the Plessey unit currently does with Plessey Telecommunications. Moreover the prospect of Eastern Bloc sales of System X as a result of the imminent relaxation in Cocom trade restrictions could lead to a significant increase. Most of the chips provided by Plessey will be application-specific destined for particular roles in systems. The new venture is still expected to buy in some chips from other sources but the agreement is that it will come first of all to Plessey.

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