1 Tandy Corp. said it won't join U.S. Memories, the group that seeks to battle the Japanese in the market for computer memory chips.
2 Tandy's decision is a second setback for U.S. Memories.
3 Last month, Apple Computer Inc. said that it wouldn't invest in the group.
4 Apple said that its money would be better spent in areas such as research and development.
5 U.S. Memories is seeking major investors to back its attempt to crack the $10 billion market for dynamic random access memory chips, a market dominated by the Japanese.
6 Those chips were in dire shortage last year, hurting many U.S. computer companies that couldn't get sufficient Japanese-supplied chips.
7 Tandy said its experience during the shortage didn't merit the $5 million to $50 million investment U.S. Memories is seeking from each investor. 'At this time, we elected not to get involved because we have been able to satisfy our need {for DRAMs} from the market as a rule,' said Ed Juge, Tandy's director of market planning.
8 Sanford Kane, U.S. Memories president, said the decision was 'disappointing,' but doesn't presage U.S. Memories' failure. 'I would like to have had them,' he said.
9 But 'they weren't on my list of companies who were critical to be a part of it.'
10 Mr. Kane became president and chief executive officer of U.S. Memories last June, when the group was formed by seven electronics companies: Advanced Micro Devices Inc., Digital Equipment Corp.; Hewlett-Packard Co.; Intel Corp.; International Business Machines Corp.; LSI Logic Corp. and National Semiconductor Corp.
11 Mr. Kane said he expects two or three major corporations to announce their participation in U.S. Memories soon after the group finishes a business plan, probably late this week.
12 U.S. Memories needs a catalyst, he said, to inspire others to join.
13 But so far, most potential participants haven't decided.
14 Sun Microsystems Inc. said it's still actively evaluating U.S. Memories and plans to meet with U.S. Memories representatives later this week.
15 American Telephone & Telegraph Co. said it was waiting to see U.S. Memories' business plan.
16 Personal-computer maker AST Research Inc. said it is still studying the situation.
17 A Compaq Computer Corp. spokeswoman said that the company hasn't made a decision yet, although 'it isn't under active consideration.'

Last month , Apple Computer Inc . said that it wouldn ' t invest in the group .
the group
What group?