Article Abstract:
Keeping crucial US high technology components or machinery in American hands is becoming more difficult, despite growing concern about the nation's dependence on Japan and other foreign nations for important technology. For example, Perkin Elmer Corp is unable to find an American buyer for its division that makes equipment for manufacturing computer chips, and is now opening discussions with a Japanese company. American companies fear that they will not be granted access to advanced components or machinery as quickly as their foreign competitors if they become dependent on foreign companies. However, many companies that are up for sale are financially troubled and are unwilling to hurt their profits or risk angering shareholders merely on a patriotic issue. Executives believe that the government should lower interest rates or cut the Federal deficit to make it easier for companies to raise money.
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Article Abstract:
Portable computers have become the fastest-growing segment of the computer industry, and the Japanese are using their expertise in miniaturizing electronic components to strengthen their position in the industry. According to Andrew S. Grove, president and CEO at Intel Corp, a new kind of product is appearing - high-volume consumer computers. 'The American computer industry,' says Grove, 'is heading into trouble.' According to Dataquest, a market researcher, nearly 40 percent of microcomputers sold in the world in 1994 will be portables, compared with 14 percent now, and Japanese companies, which have only a 9 percent market share in the American microcomputer market, sell about 40 percent of the portable machines. Many US companies are considering partnerships with Japanese companies, so that Japanese companies will change from being parts suppliers to being co-designers or manufacturers.
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Article Abstract:
IBM agrees to allow Mitsubishi Corp of Japan to market an IBM mainframe computer, the IBM 9121, which is at the low end of IBM's 390 mainframe product line. This is the first time IBM has made such an arrangement with another company to resell one of IBM's powerful mainframes. The agreement, which is seen as part of an overall consolidation that is in progress in the world computer industry, could help IBM do better in the competitive Japanese market. Mitsubishi will try to sell 900 machines during the next three years. The machines will cost between $1 million to $5 million each.
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