Case 217 - Fairchild and Fujitsu Confront National Security

by ISD - Georgetown University
$ 4.50

Navarro, Federico, Luis Ramirez, and Michael P. Ryan

Although inward foreign direct investment has generally been highly beneficial to the United States, strong concerns persist that foreign ownership of key U.S. manufacturing and technological capabilities inherently weakens U.S. national economic security or national defense. This case study explores the U.S. government’s response to the proposed 1986 acquisition of Fairchild Semiconductors, Inc., by Fujitsu, Ltd., and the national security concerns the deal triggered. It also examines the Toshiba milling machine sales to the Soviet Union, the Exon-Florio Amendment to the 1988 Trade Act, and foreign direct investment controls for national security reasons.