T.R | Title | User | Personal Name | Date | Lines |
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2417.1 | press release | BHAJEE::JAERVINEN | No Pentium inside | Tue Mar 16 1993 10:05 | 68 |
|
DIGITAL EQUIPMENT CORPORATION ANNOUNCES ALPHA AXP SECOND SOURCE
RELATIONSHIP WITH MITSUBISHI ELECTRIC CORPORATION
MAYNARD, MASS. -- March 16, 1993 -- Digital Equipment Corporation
announced today that Mitsubishi Electric Corporation will become a
second source for Digital's Alpha AXP microprocessor architecture.
Mitsubishi will manufacture and sell Digital-designed versions of
Alpha AXP microprocessor chips, as well as build and sell its own
designs based on the Alpha AXP architecture. By providing a second
source of Alpha AXP microprocessors, Digital is furthering its
commitment to establish the Alpha AXP 64-bit architecture as an
open market standard.
"We are very pleased to work with a company with the
manufacturing and technological excellence of Mitsubishi," said
Robert B. Palmer, President and Chief Executive Officer, Digital
Equipment Corporation. "Together we have the capabilities to make
the Alpha AXP architecture successful in applications ranging from
high-volume desktop and embedded markets to the high-performance
supercomputing market. Digital's strategic goal has been to foster
innovation and competitive pricing in the marketplace by
establishing other sources of supply for Alpha AXP microprocessors."
"We are looking forward to a very successful long-term
relationship with Digital," said Takashi Kitaoka, President of
Mitsubishi Electric Corporation. "We are planning to actively
promote the development and manufacture of the Alpha AXP RISC chip.
This cooperative business arrangement with Digital Equipment
Corporation will be vital in the process."
Mitsubishi chose the Alpha AXP architecture because of its
performance leadership, scalability and broad spectrum of operating
environments supported. The operating systems supported include
OpenVMS and unified UNIX, and emerging market standards such as
Microsoft's Windows NT.
Mitsubishi will manufacture, market and sell Alpha AXP chips
including new designs developed by Mitsubishi. This will be
accomplished in a phased approach where initially Mitsubishi will
manufacture and sell Alpha AXP chips based on Digital's chip
designs. Production is scheduled to begin in late 1994. Digital is
currently shipping Alpha AXP chips in volume from its multiple
semiconductor fabrication sites.
The relationship is an important part of Digital's strategy to
establish Alpha AXP as a widely used open market standard. The
company announced the Alpha AXP architecture one year ago, and
introduced its first systems based on the architecture in November,
1992. More than 35 Alpha AXP partners have announced their adoption
of the Alpha AXP architecture, including Cray Research, Encore, ACRI
(Advanced Computer Research International), Kubota Pacific,
Olivetti, Raytheon, and Aeon Systems.
Mitsubishi Electric Corporation is a leading manufacturer of
electrical and electronic equipment. With an aim of harmonizing
high technology with the human society in all aspects, the company
is endeavoring to manufacture products of high quality and
reliability. Its businesses range from home appliances, information
processing and communications systems, semiconductors and electronic
devices to such areas as equipment for automobiles and industrial
use, transportation systems, energy-related equipment and space
products.
Note to Editors: Alpha AXP, AXP, DEC, Digital, and OpenVMS are
trademarks of Digital Equipment Corporation.
OSF and OSF/1 are registered trademarks of Open
Software Foundation, Inc.
Microsoft is a registered trademark and Windows NT
is a trademark of Microsoft Corporation.
|
2417.2 | | YNGSTR::BROWN | | Tue Mar 16 1993 12:15 | 8 |
| Wonder how much we paid em.
Details of the agreement would be interesting. Intel has an agreement
with IBM that IBM not manufacture more than 50% of the (486 variants
for now) chips in it's own machines, and also has agreements on
mounting, etc. I wonder if DEC was desperate enuf to land any
second source (in this case, 8th place in the semi world) that
Mitsubish was able to avoid constraints that might interfere
with future dumping.
|
2417.3 | 2 Alphas in every pot? | VMSDEV::HALLYB | Fish have no concept of fire. | Tue Mar 16 1993 12:42 | 7 |
| > Wonder how much we paid em.
Wonder how much royalty DEC gets from each chip.
And if it's in $ or �.
John
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2417.4 | Exulent!! | TRCOA::TRCP90::ahmed | Engage .. | Tue Mar 16 1993 13:10 | 11 |
|
Great News!!!
I wonder if Mitsubishi plans to use the chip in any of
it's own products?
That would be great if they used it in some of their
high end electrical stuff!
Nadeem
|
2417.5 | there goes another technology | SOFBAS::SHERMAN | | Tue Mar 16 1993 13:25 | 9 |
| This is precisely how Japan got a lock on the consumer electronic
products market. They "licensed" the technology, "changed" it, patented
the changed products, and then dumped them on the US market for as long
as it took to run the US manufacturers out of business.
Why don't we ever learn?
kbs
|
2417.6 | | 10386::GOLDSMITH_TH | Tom Goldsmith | Tue Mar 16 1993 15:21 | 5 |
|
Mitsubishi Digital.....has a nice ring to it.....
|
2417.7 | | AIDEV::WARNER | It's only work if they make you do it | Tue Mar 16 1993 15:34 | 2 |
| Mitsubishi already makes Digital sound recording equipment...
|
2417.8 | | KALI::WATERMAN_D | Dave, LeNAC/PCI Engineering | Tue Mar 16 1993 15:37 | 5 |
| One of the most prevalent rumors of the past 10 years is that Digital
was going to be "bought" by Mitsubishi...
Dave W.
|
2417.9 | Why be U.S. biased. | ESGWST::HALEY | become a wasp and hornet | Tue Mar 16 1993 16:23 | 33 |
| re <<< Note 2417.5
> This is precisely how Japan got a lock on the consumer electronic
> products market. They "licensed" the technology, "changed" it, patented
> the changed products, and then dumped them on the US market for as long
> as it took to run the US manufacturers out of business.
The Japan bashing is getting a little strong here. Intel licensed early
x86 chips which came back into the country as V20 and V30 chips. It didn't
seem to hurt them too badly. :)
I think having a dependable second source is great. There are several
experienced computer buyers who know that single sourcing is a high risk.
We have been able to avoid part of that up to now based on the low volumes
and the commitment that we were searching for a second source.
Would you rather us not have a second source, which may well mean that many
people will not buy from us? Is your fear that the Ed Caldwell's people
have written a contract that will cause us to lose access to future
designs? Do you think we will make versions of Alpha AXP that address
markets we are not interested in addressing end user products to?
I would doubt that Intel and Motorola would meet your needs in a second
source. IBM is the largest IC producer and they too would probably be a
poor choice. LSI Logic is rather tied into Sun, as is TI. Which large
U.S. vendor should an ethnocentric company select?
I would be happy to see Seimens or Philips in Europe become an additional
source over time. We are not a U.S. company, we are a part of a
multi-national company with truely global concerns. Thinking small will
lead us to being small.
Matt
|
2417.10 | Truly Multi-national??? | MSDOA::JENNINGS | | Tue Mar 16 1993 16:45 | 2 |
| Does this mean we'll finally be able to get Japaneese cars
on Plan A?? :-]
|
2417.11 | not from outside... | FROZEN::CHERSON | the door goes on the right | Tue Mar 16 1993 17:13 | 14 |
| >This is precisely how Japan got a lock on the consumer electronic
>products market. They "licensed" the technology, "changed" it,
>patented the changed products, and then dumped them on the US
>market for as long as it took to run the US manufacturers out of
>business.
I spend a lot of time with various discrete manufacturers in this
country, and I think that after a three year "survey" it's safe to say
that US manufacturers help themselves go out of business rather than
external competition. The state of product development is actually
worse than described, in some areas (Detroit is finally seeing the
light..I think and hope).
/d.c.
|
2417.12 | Trying to become an 'Industry Standard'. | ELMAGO::JMORALES | | Tue Mar 16 1993 18:12 | 15 |
| Basically our reaction come to the fact that the ONLY two areas
of technology (bigger than computers itself) that are increasing in
volume are CMOS and Software. Therefore, our top management wants
to bank on the fact that in order to make a CMOS technology fly is to
become 'industry standard' (ie: Intel 386, 486 and soon 586 or
Microsoft's MS/DOS Operating system). If you have other companies
(like Mitsubishi, which by the way is one of the world's largest
corporations manufacturing from radios/TV's, Autos, Trucks, Banks,
Rockets, etc.,etc.,etc,........) we may become the standard....oh by
the way the S/W is OSF/1 distributed by yours truly (DEC). If we are
succesful, we may have done the right thing, however like anything else
everery knife get two cutting ends, Mitsubishi can turn around better
our Alpha Chip, patent the improved version and literally 'kill us with
our own guns'.
|
2417.13 | RE.11 THE NISSAN ALTIMA IS ON CAR PLAN THIS YEAR | GLDOA::SEVIC | | Tue Mar 16 1993 21:41 | 1 |
|
|
2417.14 | RE.13 SHOULD START RE.10 | GLDOA::SEVIC | | Tue Mar 16 1993 21:56 | 1 |
|
|
2417.15 | Stick 'em up!! | UNYEM::HAYEST | | Wed Mar 17 1993 08:17 | 16 |
| DANGEROUS !!
Anyone try to purchase an American made TV lately. Japan
has consistantly "licensed" the critical part of a product, ie: LCD display
for laptops, then, being the sole source of the item offered to
"license" and produce the product. Guess what folks. Next thing Japan
owns the market, American company can't compete, and American workers
are out of jobs.
I am not Japan bashing, but Japan views business as war.
Spoils to the victors.
Until now Japan has not been able to succeed in the microprocessor
marketplace as it is a "moving target", ie: there is no critical
component. Digital may have just given them the critical component to
the next generation of computing. If that is the case we should all be
learning Japanese.
Terry
|
2417.16 | We simply had to have a second source | NOVA::SWONGER | Rdb Software Quality Engineering | Wed Mar 17 1993 09:01 | 13 |
| Way back when Alpha was first being announced and pushed in the
industry press, there was concern from analysts, third parties, and
OEMs that Digital would not be able to keep up with demand, and that
this would limit our ability to establish Alpha as any sort of
standard.
The fact is that without a reliable second source, we would not be
credible in trying to achieve our apparent goal with Alpha - to
become a generic platform on which multiple hardware vendors base
their systems. The Mitsubishi deal makes boatloads of sense in light
of these goals.
Roy
|
2417.17 | | METMV7::SLATTERY | | Wed Mar 17 1993 09:10 | 39 |
| RE: Various psuedo or outright Japan bashing notes...
I recommend that you all read Robert Reich's (Secretary of Labor) book
"The Work of Nations". You may or may not agree with his "solutions" but
I think his description of the world is awfully tough to argue with.
Basically...
-There is no such thing as an American Company (over 50% of DEC's business
is outside of the US, Honda cars have more US content than many of
GM's, Ford's and Chrysler's)
-The important measurement is what value is added in a given country. (If our
designs are the best, Mitsubishi will continue to pay us royalties.
They will always pay us royalties for the architecture. Isn't a
"royalty export" (us exporting our designs) just as good as a hard
goods export?
-The wealth of a nation is measured by what its people can do, not by natural
resources or other traditional measures.
-The major value added is increasingly the ability to devine new solutions to
problems.
Now, back to the regularly scheduled discussion...
This is GREAT NEWS!!!!!
We have needed a second source and now we have one. The fact that it is a
Japanese company (if there is such a thing as a Japanese company) has a very
bright side. The other side of Japan discussions are that their markets are
closed. If you believe this, wouldn't you want Mitsubishi pushing our product
(Alpha architecture and chip designs) into a market that we don't have access
to?
Also, as with anything, the first relationship is the toughest. Now that
Mitsubishi is signed up, Siemens etc. will be easier to get.
Ken Slattery
|
2417.18 | | QUARK::LIONEL | Free advice is worth every cent | Wed Mar 17 1993 09:27 | 10 |
| I also find the Japan-bashing here ludicrous. We have international patents
on the Alpha AXP architecture, not just the layout of the chip, and nobody
can make an Alpha chip without a license from us. Seen any VAX chips from
Japan?
I agree with those who say this is "great news". We have a MAJOR world-wide
industrial corporation signing on as a backer of the Alpha architecture, and
we can only benefit from it.
Steve
|
2417.19 | be precise | SOFBAS::SHERMAN | | Wed Mar 17 1993 10:09 | 10 |
| You disagree, fine. But please do _not_ call any reservations about
licensing technology to another country "Country X bashing." Using that
logic I can call any disagreement with my point of view as "Ken
bashing." Disagreements are just that. Calling them "bashing" simply
attempts to stiffle dissent. ::DIGITAL is not a Politically Correct
forum. And you wouldn't want it so, would you ...?
kbs
|
2417.20 | Dumb way to respond to technical challenges.... | SPECXN::KANNAN | | Wed Mar 17 1993 10:31 | 28 |
|
In the rush to feel properly indignant about transfer of technology, it's
dumb on the part of engineers especially to classify it as "copying
technology, making modifications and making new patents". It wasn't exactly
that when it comes to Japanese Engineers. Consumer electronics especially
has seen very great strides in innovation and improvement in Japan.
They have started out with very wild ideas (such as "how can we make
a camcorder that fits in your palm") and made them happen.
It's dumb on the part of engineers elsewhere in the world to focus on
the trade practices of Japan and let engineering and product development
lessons that they may impart go by unlearnt. The real response on the part
of engineers is to rise up to innovation like them and make sure that
they bridge the huge gap that exists between excellent research and
wise, productive and profitable applications of such research. A good
example is research on Fuzzy Logic. It's looked down upon (without
understanding what it is) by the general Computer Science community.
Meanwhile Japanese Engineers have put it to use in Vacuum cleaners,
electric irons and a myriad other applications. So goes Robotics research
too.
Let's separate the trade issues from the technological ones. Political
issues should not cloud scientific and engineering reasoning. We would
just be shooting ourselves in the foot and missing at that.
Nari
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2417.21 | Re: Japan Bashing | RANGER::LTMA2::RACKEMANN | Ford Rackemann - RANGER::RACKEMANN | Wed Mar 17 1993 11:05 | 16 |
| If America and Americans spent a little less time Japan-Bashing, in fact
bashing in general, and a bit more time innovating, there'd be noone to
bash. Whatever happened to America, the most technologically advanced nation
on the planet, witht he most productive workforce in the world?
Don't forget the lessons learned from Lincoln Arcwelding during WWII. They
GAVE their designs to the competition in order to get more weapons built.
Even having given their designs to the competition, they are still number
one in their business today - 50+ yrs later.
In that company, every new hire spends a week or more learning about the ins
and outs of acrwelding - every one. This includes secretaries and janitors.
Product improvement ideas and new product ideas come from all over the
company. Groups do not try to out do one another, they build on one anothers
ideas. (ie no political in-fighting) It's no wonder they are successful...
|
2417.22 | It's a big market | SUBURB::THOMASH | The Devon Dumpling | Wed Mar 17 1993 11:35 | 26 |
| This was in UK national VTX on Monday - if this is the case,
noone is producing enough chips yet, joining with a Japanese
company maybe the smartest thing we've done.
Both to Tap the US AND Japanese markets.
Heather
INDUSTRY NEWS 16-Mar-93 Digital Internal Communication
JAPAN ASSERTS THAT THE US IS NOT FILLING ORDERS
Japan's electronics industry is preparing data to show that American
semiconductor companies failed to deliver millions of dollars worth of
computer chips ordered by Japanese companies earlier in the year, thus
contributing to the US failure to achieve a 20% share of the Japanese
market, as called for in a semiconductor trade agreement. A recent US
boom in demand for computer chips had caused American suppliers to
divert products from Japan to the US, causing hardship for Japanese
customers. American industry officials say they are not favouring
American customers at the expense of Japanese ones because American
companies are also unable to get all the chips they need.
The International Herald Tribune, Saturday 13 march 1993
|
2417.23 | | IMTDEV::BRUNO | Father Gregory | Wed Mar 17 1993 11:41 | 25 |
| Herein lies part of the success of Japan. Their public relations folk
have created a wealth of Americans who are willing to rail against ANY
criticism of their business practices, using emotional buzz-words like
"Japan-Bashing". Any discussion of Japan's large corporations behaving
as a unit (at times) is laughed off as a foolish belief in Japan Inc. Any
attempt to cease the unilateral trade disamament that allows Japan to keep
American business out of certain Japanese markets while Japan is free to enter
our markets is called "Protectionism". People fear the buzz-words, so
they work well.
In the case of Mitsubishi, it is a done deal, so there is no point in
arguing against it. What it does give us is the impetus to improve upon our
own design. At this point, we are at least even with Mitsubishi. If we avoid
resting on our laurels, we have nothing to fear from our second-sourcing
partner. Indeed, the comments about the wide acceptance of our chips being
enhanced by the second source is VERY true. Potentially, Digital may be in
an excellent business position with this strategy.
So, it comes down to working with business partners without ignoring the
potential of that partner to abuse the relationship. If we can't manage such
a necessary business relationship, then we don't deserve to keep the
technology we developed. It would prove that we are too pusillanimous to
compete in the global marketplace.
Greg
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2417.24 | y | ANARKY::BREWER | nevermind.... | Wed Mar 17 1993 12:18 | 3 |
| re .21
Dont leave out that Lincoln pays it's employees by "piece work"
too.
|
2417.25 | profit sharing | UNXA::SCODA | | Wed Mar 17 1993 12:25 | 6 |
| An instructor I had once stated that Lincoln Electric had an across the
board profit sharing program. His statement included the example of a
janitor sweeping up new nuts and bolts, going to his/her supervisor to
complain about the waste - because the waste was comming directly out
of everyone's profit sharing check.
|
2417.26 | great news | POLAR::MOKHTAR | | Wed Mar 17 1993 12:48 | 18 |
| This news is GREAT !!
The worry about Mistubishi learning our design secrets and eventually
overtaking future designs are not a concern in my opinion due to :
1) We have no design secrets, Mitsubishi could today design their own processor
that would outperform Alpha. The reason they do'nt venture in such a billion
dollar gamble is because without software and hardware market weight ( which
Mitsubishi does not posses ) their chip is doomed.
2) They will always pay us royalties for the architecture, if one day they will
radically change it in future designs to the point where royalties become
questionable then their chip will suffer the same fate listed in 1).
It will be a better choice for them to keep the Alpha architecture intact
( after all they too want it to succeed ) and focus their design efforts on
Microcontrollers,DSP,Mulitmedia,graphics or maybe design changes for
speed / yield enhancements.
|
2417.27 | 21ZERO64 (Who said that?) | MR4DEC::HARRIS | Cent milliards d'�toiles | Wed Mar 17 1993 13:20 | 18 |
| The Mitsubishi alliance is good news. It is not great news.
It is good news because Alpha technology could not survive without a
reliable second source for silicon. It has now what should be a very
reliable second source.
It is not great news because Digital required more than a year since
the initial Alpha announcement to identify a second source. It looks
as if no one else was willing to take the risk ("Markets! Show me
markets!").
Also, we don't know exactly what Mitsubishi's plans are for Alpha. The
agreement, which allows Mitsubishi eventually to develop modified
designs, may be an excellent inspiration to improve the technology. It
may also be an invitation to test the limits of the Alpha patents. We
probably won't know until it happens.
Mac
|
2417.28 | | ECADSR::SHERMAN | Steve ECADSR::Sherman DTN 223-3326 MLO5-2/26a | Wed Mar 17 1993 15:02 | 5 |
| The delay in getting a second source doesn't bother me. I agree with a
previous noter that points out that it's the first big sponsor that's
the toughest. Others will probably follow.
Steve
|
2417.29 | It's all in the agreement | SASE::GREENAWAY | | Thu Mar 18 1993 12:19 | 31 |
|
We definitely needed a heavy weight Alpha 2nd source but the agreement
looks like a Japanese bait and switch scenario.
i.e. ramp your volume and profit up by their contributions then they
improve enough to pattern, and dump to gain market share at your
inovation and expense.
From the Boston Globe article:
...Linda Sanders, a spokeswoman for semiconductor marketing at Digital,
...She said Mitsubishi would first begin selling chips based on
Digital's design. "Later on," she added, "they will be building and
selling the Alpha AXP microprocessor based on their design variation of it.
This appears to me to be a short term win for Digital and a potential
long term defeat depending on Pattern and Royalties clauses in
our agreenment with Mitsubishi.
This could be great news is we did not give away the store.
Re: .26 Makes some good points which may limit Mitsubishi's ability to
exploit Alpha against us.
Please, don't insult people with Japan bashing labels. Economic
history has documented many Japanese technology exploits and American
companies' short sightedness.
Cheers,
Paul
|
2417.30 | | ECADSR::SHERMAN | Steve ECADSR::Sherman DTN 223-3326 MLO5-2/26a | Thu Mar 18 1993 13:34 | 4 |
| Well, as far as "bait and switch" goes for grabbing technology, I wouldn't
call that Japanese. I mean, there is Microsoft ...
Steve
|
2417.31 | | BOOKS::HAMILTON | All models are false; some are useful - Dr. G. Box | Fri Mar 19 1993 09:22 | 10 |
|
re: .29
Given Digital's economic history of the past three years, it's
not clear that we had any choice but to take a short term view. The
risks are plain in allowing Mitsubishi to modify the design. Without
the second source, however, "improvements" to the design would
likely be moot.
Glenn
|
2417.32 | This concerns me. A lot. | PFSVAX::MCELWEE | Opponent of Oppression | Sat Mar 20 1993 01:01 | 19 |
| I've always assumed that the second source policy was to ensure a
supply of components in the event of a catastophic event shutting down
the primary source.
My questions are:
-Are Alpha chips being (or can be) produced in our Ayr plant? If so,
isn't this a second source fitting my interpretation (above)?
-The speed achieved in Alpha has been attributed to Digital's
fabrication expertise. I recall seeing doubting comments from the industry
press when the clock speeds were announced, to the effect that "you
can't do that". Why would we give details of this to a producer outside
the corporation?
-Lastly, no anti-Japan intended, why not a domestic fabricator?
What specifically lead to the selection of Mitsubishi?
Phil
|
2417.33 | | LASSIE::HERBISON | B.J. | Sat Mar 20 1993 09:21 | 41 |
| Re: .32
> I've always assumed that the second source policy was to ensure a
> supply of components in the event of a catastophic event shutting down
> the primary source.
> -Are Alpha chips being (or can be) produced in our Ayr plant? If so,
> isn't this a second source fitting my interpretation (above)?
That's why Digital would want to Digital plants building the
chips, but potential customers like to see two companies
building the chip to avoid problems if a sole-source company
goes bankrupt or decides to start raising the price. Digital
has been looking for a second company to produce the chips in
order to make customers feel better and more likely to buy.
> -The speed achieved in Alpha has been attributed to Digital's
> fabrication expertise. I recall seeing doubting comments from the industry
> press when the clock speeds were announced, to the effect that "you
> can't do that". Why would we give details of this to a producer outside
> the corporation?
First, anyone can do it, but they would get a higher error rate.
Second, all manufactures can improve (especially once they see
what Digital can do) so any advantage is only temporary anywhere
(unless we keep improving as well). Third, we want a second
source so customers don't consider this just a proprietary chip.
> -Lastly, no anti-Japan intended, why not a domestic fabricator?
> What specifically lead to the selection of Mitsubishi?
Did you read the previous replies? As one of them mentioned,
Digital isn't really an American company, it's an international
company, so `domestic' doesn't have a lot of meaning.
From what I heard (keep in mind that I don't make chips) the
reason it took so long to find a second source was because
manufactures kept saying `we can't make those with a low enough
error rate to make a profit'. I suspect that Mitsubishi was the
first to believe that they could make the chips.
B.J.
|
2417.34 | | DPDMAI::DAWSON | t/hs+ws=Formula for the future | Sat Mar 20 1993 13:26 | 11 |
|
My first reaction was much the same as with many of the
others here....Why Japan? And yet there are many viable reasons why
not the least of which is there might not have been any interested U.S.
company's. I do think that with Mr. Bob Palmer's history in this
market that I, for one, will give him the benifit of the doubt. I am
sure that all these questions were asked and weighed before agreeing to
this decision.
Dave
|
2417.35 | Further clairificatioin on some of the questions of RE:32 & 33 | 28250::STENGEL | | Sat Mar 20 1993 14:25 | 46 |
| > I've always assumed that the second source policy was to ensure a
> supply of components in the event of a catastophic event shutting down
> the primary source.
This is only a small part of the picture. Industry wide acceptance of an
Architechture that we call AXP is only demonstrated by MAJOR players making
MAJOR commitments to proliferation of our licensed technologies. Take for
example the application of a geographic based information system showing
a map of OSAKA and you click on car reapir and get a list of 5 -15 second
video commercials of local repair shops with audio dubed in a choice of 7
languages. The CRT & console in your "MITSUBISHI" automobile developed
and sold by one company in the Mitsubishi group, working in consort with
other members who specialize in advertising and a third in video production,
and others in the host of service centers that have the parts to fix your
car. We can make the way business operates in Japan be a test bed for
enabling technology. In the words of Robert Palmer "to foster innovation
and competitive pricing" are the real reasons for second, third, fourth
source access.
>> fabrication expertise. I recall seeing doubting comments from the industry
>> press when the clock speeds were announced, to the effect that "you
>> can't do that". Why would we give details of this to a producer outside
>> the corporation?
> First, anyone can do it, but they would get a higher error rate.
> Second, all manufactures can improve (especially once they see
> what Digital can do) so any advantage is only temporary anywhere
> (unless we keep improving as well). Third, we want a second
> source so customers don't consider this just a proprietary chip.
I would add to this.. "you can't do that....profitably" It is not only
defect density (HLO term for "higher error rate") but cycle time and
capaital equipment utilization for a tedious process has an opportunity
cost associated with it. Our R&D investments in FAB 6 etc are but a tiny
fraction of the overall expenditures required to putting an AXP in everyone's
pocket. And the problem is that if $10 billion is the magic number and
15 - 24 months is the market window we have a slight barrier to entry in
making that happen unless we have lot's of folks sharing the risk, and profit.
You are probably aware of the present mix of Digital business done
in U.S. Europe and GIA, with GIA being the smallest piece. It is easier to
triple (or more) revenue of smaller pieces when you have DOMINANT partners
and increase market share by growing the pie. Think of all the AXP based
gear that can be sold and SI-services from DEC-Japan, DEC-Korea, etc to
augment the customized nitch applications put into service by innovative
applications that come from Misubishi. Go get'em!!
|
2417.36 | | CSC32::D_RODRIGUEZ | Midnight Falcon ... | Sat Mar 20 1993 21:01 | 3 |
| Knowing Japan's past history on how it obtains a market, I would wonder if
this partnership would prevent other companies from licensing ... or does
having a second source all that really matters?
|
2417.37 | | STAR::ABBASI | i am therfore i think | Sun Mar 21 1993 23:37 | 15 |
| i dont want to make a rat hole, but there was a program on TV this
weekend on how work in Japan companies is, and that some dies of
what they called 'over-work-syndrome', and that even though the
companies seems successful, but the life of the workers they live i
thought is not healthy.
work work work all day , 10 hours per day, 6-7 days per week, after a
while the fuse must blow and one will die or get sick from the
stress and its complications.
i think it is better where there is balance between work and
recreational activities such as school, chess, parks, travel and such
related matter.
\bye
\nasser
|
2417.38 | | LABC::RU | | Mon Mar 22 1993 11:44 | 7 |
2417.39 | ? | GOOROO::DCLARK | I do believe I've had enough | Mon Mar 22 1993 13:09 | 5 |
| re .37
so? What does that have to do with who we pick as a second source?
- Dave
|
2417.40 | | TOMK::KRUPINSKI | Slave of the Democratic Party | Mon Mar 22 1993 13:14 | 8 |
| > What does that have to do with who we pick as a second source?
The arrogance of this is astounding. What makes you think
we had semiconductor manufacturers lined up at our door,
begging for Digital to look favorably on their requests
to be allowed to build AXP chips?
Tom_K
|
2417.41 | | FSDEV::MGILBERT | Education Reform starts at home.... | Mon Mar 22 1993 13:31 | 9 |
| When it comes to the "supply" of semiconductor manufacturers who fit the bill
as a second source I suspect that outside of the Japanese there aren't too many
who could even manage to qualify (or want to). First you need someone with
enough capital and capacity to build a new product using new technology. Then
you need someone who isn't likely to be your own competition before you start
(Could you imagine Intel putting up their hand to second source Alpha?). These,
and I'm sure other considerations, whittles down the field considerably and the
number of potential US-based companies doing this kind of work isn't exactly
large to begin with.
|
2417.42 | | AOSG::NORDLINGER | Alpha OSF dtn 381-2894 | Wed Mar 24 1993 16:00 | 9 |
| Front page of the EE times had a story on Mitsubishi second sourcing
Alpha.
This is great and much needed news. A third vendor would be excellent
as well. Digital's hope is to compete with Intel and this is a big
step in the right direction.
For a good story on the Japanese check out Micheal Crieghton's
"Rising Sun" now in paperback.
|
2417.43 | The truth.... | SPECXN::KANNAN | | Wed Mar 24 1993 17:10 | 16 |
|
The latest issue of Datamation has a cover story on Digital, Alpha and
Bob Palmer.
Palmer is quoted as saying "On alternate chip suppliers for Alpha:
...I Think that semiconductor vendors, clearly, are going to want
this architecture to be established before they make a significant
investment in supporting an alternate supplier of chips."
So it seems like unlike other American semi-conductor manufacturers such as
National Semi-conductor or Motorola, Mitsubishi
seems like the only one willing to put their money where their mouth is.
Nari
|
2417.44 | Thanks but no thanks | ELWOOD::LANE | Yeah, we can do that | Thu Mar 25 1993 07:26 | 4 |
| |For a good story on the Japanese check out Micheal Crieghton's
|"Rising Sun" now in paperback.
I got about a third of the way through it before I threw it away.
|
2417.45 | Synergy ? | GAAS::BRAUCHER | | Thu Mar 25 1993 13:14 | 6 |
|
This is not new. SGI/MIPS has second source with NEC and Toshiba.
HP has second sources Hitachi and Oki. Sun has second source with
Fujitsu. Leading microprocessors are American. Leaders in chip
manufacturing yields are Japanese. Maybe there is synergy here ?
|