Fable: The Six Headed Chip Beast
There was once an enormous company involved in car-making, aerospace and a host of other industries which realised one day that it had six subsidiaries which made ICs.
Together the six companies had annual sales of $1 billion back in 1992 when a billion put you into the top ten.
It is an old shibboleth of the chip industry that mergers between even two companies don’t work so the world wondered at a conception intended to merge six.
Sales forces were integrated with every salesman selling every product of all six companies; manufacturing was consolidated into fewer sites; R&D was integrated.
But the whole turned out to be less than the sum of its parts and the great amalgamation fragmented back into its original constituents.
MORAL: IC mergers rarely work.