"The Japanese were taking over the semiconductor industry. That was the fear. Everybody was scared," recounts Sanders, "we had HP saying Japanese quality was superior. Things were tough."
"Andy Grove believed, in the 81-82 timeframe, that there was no way the US semiconductor industry, and that included Intel, was going to survive the onslaught of this enormous juggernaut. They had to find ways to make alliances to leverage resources."
"Grove could have just made us their second source," recalls Sanders, "we could have paid a royalty. But he wanted someone to augment Intel's design capability and he thought we could be that company."
Wistfully, Sanders adds: "It turns out we didn't do a very good job there."