The Rise & Fall of the Japanese Semiconductor Industry, 1970 †2000 Ess

The Rise & Fall of the Japanese Semiconductor Industry, 1970 2000SummaryThe semiconductor was the created with the construct of transistor byBell Corporation. The industry was driven by the of great USelectronic giants such as general Electronic, Texas Instruments andothers. These US giants conquered most of the populace foodstuff portionrs.However in the ever-changing world economy the market always moveshere to there. Nothing was different in the case of semiconductorindustry. With the swing out of time US gradually lost control of thesemiconductor market shares and Japan captured the industry.Nevertheless, it was only a matter of period to mis countersink the marketshare of semiconductor business by Japan. The time frame ofsemiconductor business started immediately after WWII and running evennow.In a way the changes took place and how the shape of distribution ofmarket has been changed was grounded by all time great market andeconomic mechanisms. Some argues those g everywhe renment policies andeconomic mechanisms in an optimistic vantage point some obviously in seesin pessimistic view. However, this is known to all that the policiesthat have been part of the cause have made those countries the worlds loss leader in electronic production as well as the economic super power ofthe planet.Although US is the originator and architect of the semiconductortechnology, especially was neat in DRAM (Digital random AccessMemory) assembly, US actually struggled to stay in the competition inlong run because of the excellent Japanese insurance policy more or less the foreigndirect investment in Japan. Many may argue with various benefits ofgreen field investment that it is good for the host unpolished but Japannever encouraged Greenfield investment by US or by any other countriesespecially in semiconductor industry. immobilise about the encouragement,Japan had a great barrier and restrictions on this semiconductorindustry. The policy of Japanese government, Mini stry of InternationalTrade and Industry (MITI), deliberately made US firms to go for jointadventure with the Japanese companies. Initially US firms were makingprofit but with the help of Japanese government policy Japanese firmstook over 80% of global market share of chip making businessespecially semiconductor industry where US was the innovator of theDRAM.Afterward tremendous... ...gained DRAM market share in Japan. Even in 1988 Samsung never producedDRAM but in 1994 got more than 12 percent of market share lot beforehand ofJapanese giants like Mitsubishi or NEC. The investment on plants ofdigital chip making was lot higher by the Korean and chinawareese companycompared than Japanese or US. South Korean firms invested 55 percentof the revenue from the semiconductor revenue whereas Japanese didonly 15 percent. The aggressive move from South Korea and Taiwan madethem able to grasp the market share of Japan. Still now from 1991Japan is losing its market share in semiconductor busi ness.Also, The U.S. comeback in chips was collect primarily to rapid growth inthe market for microprocessors, the chips that act as the brains ofpersonal computers. That market is dominated by Intel & Motorola.Intels semiconductor sales increased from $1 billion in 1986 to about$4 billion in 1991, a gain that by itself is responsible for the U.S.share of the world market being about 5% higher than it otherwisewould be. The Japanese attempt to develop its own microprocessordesign standard TRON failed in large part because there was no computer software to support it.