• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

"The Rise & Fall of the Japanese Semiconductor Industry, 1970 - 2000"

Extracts from this document...

Introduction

"The Rise & Fall of the Japanese Semiconductor Industry, 1970 - 2000" Summary: The semiconductor was the created with the innovation of transistor by Bell Corporation. The industry was driven by the of great US electronic giants such as general Electronic, Texas Instruments and others. These US giants conquered most of the world market sharers. However in the ever-changing world economy the market always moves here to there. Nothing was different in the case of semiconductor industry. With the span of time US gradually lost control of the semiconductor market shares and Japan captured the industry. Nevertheless, it was only a matter of period to misplace the market share of semiconductor business by Japan. The time frame of semiconductor business started immediately after WWII and running even now. In a way the changes took place and how the shape of distribution of market has been changed was grounded by all time great market and economic mechanisms. Some argues those government policies and economic mechanisms in an optimistic viewpoint some obviously in sees in pessimistic view. However, this is known to all that the policies that have been part of the cause have made those countries the world's leader in electronic production as well as the economic super power of the planet. ...read more.

Middle

Initially, US firms found that licensing is a profitable way to place their business in Japan as they were receiving an amount of 10 percent of the net earnings from the licensees by the end of 1060s. This amount was paid as the royalty to the US firms by the Japanese local firms. Actually in other words MITI's policy was to insist that if a foreign firm was going to license technology in Japan meaning they are allowing the local firm to know how to make those things. Gradually the policy of the MITI got successful. Slowly but surely very soon the US companies faced the Japanese local firms as their tough competitor. The firms that raised to the top this tough environment, such as NEC, were more than capable of going head to head with US semiconductor firms by the mid-1970s. The most significant reason of this competition is as they have learnt the same technology; the features were more or less similar. All the competition was in between the pricing. Better the efficiency the firms had more the earned as profit. ...read more.

Conclusion

Secondly, the companies of Korea and Taiwan, particularly Samsung, gained DRAM market share in Japan. Even in 1988 Samsung never produced DRAM but in 1994 got more than 12 percent of market share lot ahead of Japanese giants like Mitsubishi or NEC. The investment on plants of digital chip making was lot higher by the Korean and Taiwanese company compared than Japanese or US. South Korean firms invested 55 percent of the revenue from the semiconductor revenue whereas Japanese did only 15 percent. The aggressive move from South Korea and Taiwan made them able to grasp the market share of Japan. Still now from 1991 Japan is losing its market share in semiconductor business. Also, The U.S. comeback in chips was due primarily to rapid growth in the market for microprocessors, the chips that act as the "brains" of personal computers. That market is dominated by Intel & Motorola. Intel's 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 otherwise would be. The Japanese attempt to develop its own microprocessor design standard - "TRON" failed in large part because there was no software to support it. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The Japanese Occupation - Concept of Great East Asia Co-Prosperity Sphere

    as the subordination of their interests to Japanese military and material requirements. In French Indo-China, the independence movement was to be encouraged and the French forced out. Chiang Kai Shek with whom the Japanese were currently trying to come to terms was to be offered the occupation of Tongking as part of the price for a deal.

  2. Causes of the Great Depression

    Economists used a yardstick from the Jazz Age to evaluate this 'correction'; the yardstick was the crash of October 1929. The crash of 1929 continues to be a fascinating example of panic in high finance and is still a staple of Economics 101.

  1. The structure of the airline industry.

    Airtran currently operates a total of 61 regional jets and is in process of replacing the older DC-9 fleet with the newer, more fuel efficient Boeing 717's. Training the mechanics is limited to two aircraft - which are very similar at that.

  2. Bellway Plc is a holding company with subsidiaries; its main subsidiary company is Bellway ...

    Bellway has implemented a number of strategies in relation to its product, over the years the strategies have been adjusted in responds to industry and environment. 2000 2001 2002 2003 2004 Product Diverse range of homes To enables it to satisfy the demands of various customer segments.

  1. Economic growth in South Korea

    Because of South Korea's low labour costs and the massive devaluations, companies therefore rapidly became competitive. This strategy promoted economic growth through labour-intensive manufactured exports, in which South Korea could develop a competitive advantage. Government initiatives played an important role in this process and therefore the inflow of foreign capital was greatly encouraged to supplement the shortage of domestic savings.

  2. A Report on US Japanese Economic Crisis - 2001.

    The USA started the year 2001 with a huge trade deficit. Also increase in the price of oil in the preceding periods is thought by many as one of the factors for triggering the slide. Increase in the price of oil ate away a proportion of the sales proceeds of

  1. The Australian Mobile Communication Industry.

    1993 2000 2003 (Planned) - 94% pop 95% pop - Singtel Optus 2G: GSM/GSM1800 3G: UMTS 1993 2003 (Planned) 94% pop - Vodafone 2G: GSM/GSM1800 3G: UMTS 1993 2003 (Planned) 93% pop - Hutchison 2G: CDMA 3G: CDMA2000 2000 2003 (Planned)

  2. Analysis of US's and EU's FDI in Japan

    Low profitability Profitability is another determinant for foreign firms to invest in Japan. However, the relatively low profit rate in many Japanese industries discourages foreign investors. This low profit is subject to a kind of unique relationship between Japanese firms: keiretsu, meaning of 'corporate group'.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work