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Volume 2, Number 8
August
1983
Digital Acquires New
Technology For Next-Generation Vax Computers
Digital has acquired a technology
license option to use advanced semicontechnology from
Trilogy Ltd. and has agreed to acquire preferred a nine
percent interest in that company. Digital will shares and
the technology license option.
According to President Ken Olsen,
"Trilogy's unique appraoch to high performance,
ultra-reliable semiconductor devices represents a
breakthrough in circuit integration and packaging that
should result in significant improvements in reliability and
performance. The integration of this semiconductor
technology in Digital's larger computer systems is
consistent with our practice of introducing the most
advanced technology into our new products."
Founded in 1980 by Gene Amdahl and
his son Carlton, Trilogy is developing large mainframe
IBM-compatible computers. Using a new technology known as
"wafer scale integration." (A profile of the company
appeared in the June 6 issue of Business Week).
Instead of
slicing a large silicon wafer into little chips and then
wriing those together, Trilogy leaves all the circuitry on a
single wafer (2-1/2 inches square). For the large machines
that Trilogy plans to introduce in two years, 40 wafers will
take the place of as many as 4,0000 separate chips, reducing
the size and manufacturing costs of the machine, and
improving reliability.
Because the circuitry is closer together on such a
wafer, it will be able to operate far faster than is
possible with conventional techniques.
The
large wafers also allow space for extra circuits to make a
computer "fail-safe." Two or three times as many circuits as are
actually needed for a function could be put on a wafer. Then in
case of a failure, a diagnostic circuit on the wafer could
detect the problem and switch the signals to other circuits on
the same wafer.
Digital hopes to
use this technology to develop high performance, high
reliability products that use proven VAX architecture.
Part of
Trilogy's financing comes from licensing the new technology to
other computer companies, such as Digital, that compete in
different markets. CII Honeywell Bull, the Paris-based
computer maker, has invested $13 million, and Sperry $42
million. Trilogy has already spent over $100 million in
developing this new technology.
This move is
part of Digital's overall effort to ensure its technology
leadership for the future. Last year Digital spent about $450
million on research and development, opened R&D centers on
the West Coast and in Tokyo, Japan, and expanded its
manufacturing and design capabilities in Hudson, Mass. Digital
also recently became a partner in another venture — MCC
(Microelectronics and Computer Technology Corp.), a consortium
of 15 high technology companies, initiated by Control Data
Corp. Formed in August of 1982, this group plans to share
R&D resources to address four key areas of advanced
research: Computer Aided Design/Computer Aided Manufacturing
(CAD/CAM), electronics packaging, software productivity and
advanced computer architecture. They recently announced that
Austin, Texas, will be the site of their research facility.
Gordon Bell has
decided to leave Digital to join a new venture. Jack Smith,
vice president, Manufacturing, who has worked closely with
Gordon for well over a year, will continue to provide
leadership to the Engineering organization. Jack and Gordon
have worked to integrate Digital's Engineering and
Manufacturing strategies, and have worked together on the
Product Strategy and Engineering Development Committees.
Gordon started
with Digital in 1960 as the company's second engineer. He took
a leave of absence in 1966 to join the faculty at Carnegie
Mellon University in Pittsburgh, and rejoined the company in
1972 as vice president of Engineering. He has received several
awards for contributions to computer design, including the
Mellon Award, the McDowell Award and the Eckert- Mauchly
Award.
"Gordon's
contributions to the company are innumerable," says Jack
Smith. "He has built an outstanding engineering organization
and has been directly involved in the development of several
products."
"We and, indeed,
the entire industry are greatly indebted to Gordon for his
guidance and contributions. We will, miss him as a highly
valued colleague," added Win Hindle, vice president, Corporate
Operations,
Gordon made the
following comments in his letter of farewell:
"Over the last
11 years, I have enjoyed working with what I believe is now
one of the world's best engineering organizations as measured
by technical leaders, managers and products. Leading and
helping build this organization has been the most exciting
project I've ever worked on. It is this group which has built
the great products to feed the company. It is also why I think
Digital is a leader in computing.
"As a major
bonus, we have also established a computing environment which
I think is both impenetrable competitively, and yet flexible
enough to build on for the succeeding fifth and sixth computer
generations. This structure should last for at least a decade!
"There you have
it - an incredible base of engineers and an architecture that
no one can touch. We are of a size that will probably require
some organizational changes for better responsiveness, market
coupling and easier management. Yet, there's still need for
overall leadership and architecture; again, I think the
engineering organization has these people. There's no reason
to think that will all these assets, Digital cannot continue
its leadership position. I'm leaving Digital in good hands.
"Now, I need a
change. I am going to try something at a different scale and
in a different fashion in which I expect to be both a customer
of and a supplier to Digital. Given Digital's incredible
product array, the limited resources of a small company will
be directed at uniqueness. I intend to maintain my positive
relationship with the company.
"I have enjoyed
being at Digital and helping it become a legendary company. I
want to remain friends with all of you, and will, no doubt
occasionally comment on products. I hope to see you in the
future... .perhaps at some ecumenical place such as the
Computer Museum or in search of interesting and useful
machines."