Cold Feet: Fujitsu drops its Fairchild bid

Fujitsu drops its Fairchild bid

A hornet's nest was stirred up in Washington last fall when Fujitsu, the Japanese electronics giant, proposed buying 80% of ailing Fairchild Semiconductor. Key Reagan Administration officials had serious worries about the sale of the California-based chip producer, which was to take place for an estimated $225 million. Earlier this month Commerce Secretary Malcolm Baldrige went public with his opposition, hinting at national-security concerns and stressing the need to protect America's enfeebled semiconductor industry. Last week Fujitsu dropped its controversial merger plan even as U.S.-Japanese friction continued to rise over the issue.

The fuss over Fujitsu's marriage proposal was colored by...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!