Why Was Japan So "Good" at Semiconductors?

Length: 18m 58s|Uploaded: 2025-02-23
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In the 1970s and 1980s, Japan's semiconductor industry, especially in memory chips like DRAM, grew very quickly, causing concern in the US. This success was due to several factors. Japanese companies were often part of larger business groups, which helped them get steady orders and money to invest in factories. They focused strongly on quality, influenced by collaborations with NTT, Japan's phone company. While American companies were often smaller and specialized, Japanese firms could invest heavily in new, expensive factories and use advanced automation and cleanroom technologies, leading to lower costs and higher quality. They also took on a lot of debt, supported by Japanese banks, to fund this growth. Japanese workers were very productive and worked long hours, but their wages didn't increase as much as their productivity, allowing companies to reinvest profits. However, Japan's dominance ended due to trade agreements, the rising value of the Yen, and the rise of other Asian manufacturers, especially Samsung, who were faster at developing new technologies and improving production processes. The Japanese companies were slow to adapt, stuck with older business models, and couldn't compete with the new, faster-moving global market.

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