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

The Rise & F all told of the Japanese Semiconductor Industry, 1970 2000SummaryThe semiconducting material was the created with the innovation of transistor byBell Corporation. The industry was driven by the of extensive USelectronic giants such as general Electronic, Texas Instruments andothers. These US giants conquered most of the world commercialize sharers.However in the ever-changing world economy the market always moveshere to there. Nothing was different in the case of semiconductor unitindustry. With the span of time US gradually lost control of thesemiconductor market shares and Japan captured the industry.Nevertheless, it was only a matter of period to misplace the marketshare of semiconductor ancestry by Japan. The time frame ofsemiconductor traffic started immediately after WWII and running even like a shot.In a way the changes took place and how the shape of distri bution ofmarket has been changed was grounded by all time bang-up market and economic mechanisms. S ome argues those government policies andeconomic mechanisms in an optimistic viewpoint some obviously in seesin pessimistic view. However, this is kn witness to all that the policiesthat have been part of the cause have made those countries the worldsleader in electronic production as well as the economic super power ofthe planet.Although US is the originator and architect of the semiconductortechnology, especially was outstanding in DRAM (Digital random AccessMemory) assembly, US actually struggled to chit in the competition inlong run because of the excellent Japanese policy about the foreigndirect investment in Japan. Many whitethorn argue with various benefits ofgreen field investment that it is good for the host country but Japannever encouraged Greenfield investment by US or by any other countriesespecially in semiconductor industry. Forget 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 tick 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 ahead ofJapanese giants like Mitsubishi or NEC. The investment on plants ofdigital chip making was lot higher by the Korean and Taiwanese 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 business.Also , The U.S. comeback in chips was due 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 nosoftware to support it.