Is Clipper dead?

From EDUPAGE:

REPLACEMENT FOR CLIPPER
AT&T and VLSI Technology Inc. will collaborate to develop microchips that
use a triple-strength version of DES (data encryption standard), which
previously had been rejected by the National Security Agency. VLSI is the
designated contractor to make the government-favored Clipper chips, but
this latest announcement reveals their doubts over whether there's a market
for the Clipper. "These companies have basically made the determination
that Clipper is dead and there's going to be the proliferation of
encryption anyway, so they might as well take advantage of it," says one
observer, who predicts the market for such technology "could reach hundreds
of millions" of dollars in annual sales by the end of the decade. (Wall
Street Journal 1/31/95 A3)