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The 1960s and 1970s saw the rise of semiconductor producers in the United States,
Japan, and Europe, encouraged by advances in the United States, including the development of the integrated circuit and the creation of the microprocessor. Despite its history of technology leadership, the United States semiconductor industry’s market leadership had diminished by the mid-1980s when Japanese firms relocated their U. ...
The global chip industry has seen a number of significant changes in the past decades as we can observe in this case.
Question n°1
1) What factors accounted for the rise of Japan’s semiconductor manufacturers during the 1970s and 1980s?
During the mid-1970s, US companies held approximately 70% of the semiconductor world market. Nonetheless, during the 1980s, the market share of US enterprises plunged, falling to 29% in 1990 whereas the market share held by Japanese firms rose from 24% at the end of the 1970s to 49% by 1990. In 1988, Japanese firms had captured more than 80% of the world market for the DRAM, the most widely used integrated circuit. ...
Firstly, the industrial policy of the Japanese government was a key element of that triumph. Indeed, the Japanese government, more particularly the Ministry of International Trade and Industry (the MITI) strengthened the highly competitive semiconductor industry by restraining foreign competition in the local market and by purchasing foreign technology and expertise. Moreover, the government limited foreign competition by banning US firms to set up joint ventures or to invest in Japanese firms and by restraining foreign imports with the help of sky-scraping tariffs and limiting quotas. Furthermore, Japanese firms had to get authorization from MITI in order to acquire integrated circuits from foreign competitors.
Approximate Word count = 1382
Approximate Pages = 5.5
(250 words per page double spaced)
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