The Quadfather said:
I'm very curious. If it is so expensive to make ICs from scratch, then why was it economically feasible to do it in 1979? Did Audionics lose big money on the Composer? A good project would be to track down all of those Dolby Decoders that were used for theaters and that employed chips purchased from Audionics. They would provide a stock of parts so that ailing Space and Image Composers could be repaired. Is there a chance that Dolby didn't use them all? I guess I would need to contact Dolby on this issue.
The Quadfather
This message is long because I am trying to cover ground on multiple inquiries in this thread all in one reply.
The people at Tate Audio had this vision that the National Semiconductor chips were going to work correctly. I think National Semiconductor had an exclusive on the chips and bought into the whole thing like a "partner" because they believed that these chips could be the next "Dolby Noise Reduction" type chip that everyone would be using. I think it was National's early participation that made the Tate chip fabrication economically feasible on the first go-around.
If the chips had worked properly from the start, the first generation of "simple" Tate decoders would have been available in short order for $150-$300, not the much more expensive units from Audionics and Fosgate. There is a document on my web site which quotes this price (the first people who left deposits on the Composer in 1976 got theirs for the promised $300 or at whatever level they bought in at!). There would have been near zero development time because Tate (who would have still had Martin Willcocks going full-bore on the project) would have been able to provide all the development materials, schematics and proto boards to get all interested parties started up quickly. Since this never happened, Tate didn't stand to make any money off this system because it couldn't convince the large manufacturers to get behind a flawed chipset.
As it was, I believe Martin Willcocks left Tate shortly after the chips were confirmed to be non-working. Tate had invested everything it had to get to this point and I don't think Martin could see any continuing income under the circumstances. National had already invested heavily in getting the project to the point it was at and denied it had made any mistakes. I am sure this was partially due to the fact that their engineers really didn't know what the chips were SUPPOSED to sound like and hadn't developed any definitive tests to prove proper operation one way or another.
The technical "pissing match" between Tate and National eventually turned into a full-blown lawsuit. Audionics got involved because we were the first ones to show an interest in the system (even after the chips were found to be less than working) and had some available expertise as we had been working on our own Shadow Vector SQ decoding system. That's where my association with the Tate System started, when we took on the job of trying to find a way to make the chip set functional despite the fabrication problems. This marked the beginning of 3 grueling years of development on a daily basis until all the involved parties were happy enough with the outcome to sign-off and go for it.
Tate and Audionics certainly didn't make any profit on the project. Every one of those Composers was subsidized heavily by all the parties involved and it was a real effort to get some of these things out in the world so that all the development work wasn't in vain. If we couldn't recoup the losses at least we could advance the art in some way, and get one for ourselves (we were all "believers" and loved the unit long before it hit the streets). As Charlie Wood once remarked... "At least I got my Composer and a spare set of chips out of it"!
National had made a lot of the investment themselves in order to make the big bucks on the back end, but they lost out as much as anyone else when the original chips didn't work. I am not sure why they pulled out... were they cutting their losses or was Tate threatening to get ugly with a lawsuit early on because they had no funding to continue the development?
In any case, I believe it was the National underwriting in addition to the Tate Audio investment that made the chips possible in 1979. You remove all of that and try to fund it yourself, you are looking at big bucks!
As far as Exar still having the fab materials, well there is a few problems with that idea. Exar could only legally make the Tate chips and sell them to Tate Audio, who in turn sold them to the manufacturers. This was how Tate guaranteed they got their cut and they could control not only the price but the distribution. Exar probably couldn't make any without Tate's say-so and Tate hasn't existed in quite some time. Exar isn't the owner of the design just a contract fabrication house in this case.
I wouldn't be surprised if either Exar returned the fab materials to Tate when the end came OR if Tate had offered to sell the whole thing to Dolby for a large sum of money that Dolby wasn't willing to pay! Add to this the fact that Exar's current product line-up is almost entirely in the high-speed data communications area or Video Processing. The Tate chip set is probably a bit out of their current capabilities for easy tooling changes.
I am sure Dolby protected its' interests by stocking extra supplies of the Tate chips to keep things covered until they could design a replacement that didn't need them. Do they still exist? Are there spares still in stock? My guess would be that most of that stuff is long gone, thrown out and written off. It is too expensive to keep old stuff in stock forever when you have to pay taxes on it every year! I am reasonably sure nobody thought to take them all home and put them in a box in case they were worth something 20 years down the road!
...but you don't know for sure unless you ask and stranger things have happened! You would just have to find someone at Dolby was was there 20 years ago. That might be tougher than finding a Tate chip set!
Steve