View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 4, 1987

US AGENCIES SPLIT ON WHETHER TO ALLOW FUJITSU TO TAKE CONTROL OF FAIRCHILD

By CBR Staff Writer

The Reagan administration has extended the mandatory 30-day period for review of the proposal by Schlumberger Ltd to sell 80% of Fairchild Semiconductor to Fujitsu Ltd – but despite the increasingly protectionist stance in the US, the message is getting through that if Fujitsu is not allowed to take the company over, Fairchild may simply be closed altogether. According to the Wall Street Journal, while the Pentagon is opposed to the deal on the grounds that Fairchild does some 40% of its business with military contractors, both the Treasury and the State Department are in favour – but the acquisition could be turned down on anti-trust grounds, since the combination would create the fifth largest chip company in the world. The anti-trust issue is the only one on which the merger can be rejected under US federal law, but restrictive measures available to the Pentagon and the Commerce Department could make the acquisition unviable for Fujitsu. The Pentagon fears that the merged company will back off from developing and manufacturing the specialist military chips that its contractors need, but Fujitsu has already agreed to maintain that side of the business, and to institute controls to safeguard any classified information.

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED
THANK YOU