US MANAGES free trade and globalization pt. 1

Charles Jannuzi jannuzi at edu00.f-edu.fukui-u.ac.jp
Mon Feb 4 23:18:02 PST 2002


This chronology does not explain why Japan does not produce OSes or processors for pcs. Basically, it worked like this. Back in the mid 80s, the Japanese had to agree to a fixed share of the US market in commodity chips. They also had to agree to start procuring inferior US products in order to hit a fixed US share of the Japanese market, including commodity chips which they already had a glut of. And, Tron OS and the chip development for it were cited under the 301 trade bill as 'unfair trade impediments'. I've been told that Microsoft got this thrown into the bills content, but I lack documentation to show this. But it worked out very well for US chip producers. At first the chip cartelization caused high prices for chips in the US, but even US companies were able to buy Japanese made 'dumped' chips elsewhere to keep prices down. The cartel/quotas kept some US companies in DRAM--this is why Micron is buying Hynix right now (and recently bought out troubled Toshiba in a DRAM joint venture). And the Japanese companies found some products that were US made that could help them meet the US-imposed quotas for market share in Japan: processor chips. This more or less broke up the chip market into two divisions: commodity chips and processors, and for the most part Japanese companies stayed out of the latter.

One, this helped them to meet US-imposed quotas (which the US was still complaining about as of 1996!). Two, it got them out of the hot seat on processor chips and OSes since the Tron project was specifically cited in the US trade laws. Also, many Japanese companies were sure that if they moved into processors, it would cause all sorts of litigation problems with Intel (see the law passed in 1984).

Here is the chronology:

http://www.semichips.org/abt_history.cfm

1984

Chip Protection Act becomes law, creating the first new form of intellectual property protection in the United States since the 19th century.

Congress revises anti-trust laws to allow joint R&D consortia. IBM develops a one-million bit RAM. Anti-lock brakes begin using microcontrollers. Apple introduces the Macintosh computer.

1985

U.S. and Japanese governments agree to eliminate tariffs on semiconductors. SIA files petition with U.S. government, citing unfair Japanese market barriers.

Intel drops out of DRAM business.

1986

U.S. and Japan sign agreement to end dumping practices and open Japan’s market; yet nine of eleven U.S. DRAM manufacturers leave market, and Japan overtakes U.S. as the world’s leading semiconductor producer. Japanese firms lose $4 billion in quest for semiconductor dominance.

Compaq unveils 386-based PCs.

Bell Labs introduces neural network chips that mimic the way some brain cells retrieve stored information and solve problems.

1987

SIA forms SEMATECH, a consortium of chip manufacturers dedicated to improving manufacturing technology.

U.S. imposes $300 million in trade sanctions against Japan for failing to comply with anti-dumping agreement.

U.S. EPROM manufacturers regain worldwide lead; next to DRAM, EPROMs are most critical commodity product.

1988

Reduced Instruction Set Chip (RISC) technology becomes available commercially, allowing faster, less memory-intensive programming options.

1989

SIA commissions reproductive health study to determine if some chemicals used in chip plants cause health problems.

1990

Panasonic Palmcorder is introduced using LSI Logic chips. LSI was the first U.S. company to design a chip specifically for a Japanese company’s consumer product.

Internet use tops 100,000.

1991

Japan & U.S. announce new trade agreement committing Japan to open its market to foreign semiconductors and providing a strong deterrent to dumping.

1992

Reproductive health study recommends phasing out some chemicals used in manufacturing chips.

Technology experts gather to design a 15-year roadmap for national semiconductor research needs.

Microsoft introduces Windows 3.1.

1993

U.S. overtakes Japan in worldwide chip sales.

IBM and Motorola introduce RISC chip for PCs.

Harris Corp. introduces Monster Power ICs (MCT). They help motorized products from refrigerators to jet fighters operate more efficiently.

1994

U.S. Labor Department ranks the semiconductor industry as America’s second safest, reflecting a dramatic reduction in work-related injury and illness rates among domestic semiconductor workers.

The semiconductor industry surpasses $100 billion sales.

1995

Foreign share of Japanese market exceeds 20 percent for the first time.

1996

U.S. fabrication facility growth explodes as chips become increasingly prevalent in new consumer products. High-end chips make computer networking, telephone communications and internet connections faster and smarter.

AT&T spins off Lucent, the portion of the telephone giant once known as Bell Labs.

U.S. and Japan approve new trade agreement on semiconductors as foreign share in Japan approaches 30 percent.

1997

SIA unveils the Focus Center Program. The new consortium is designed to tackle technology roadblocks by focusing on long-term research (eight years and beyond).

A new edition of the National Technology Roadmap is released worldwide.

1998

Replace with - SIA creates a Workforce Strategy Committee to address the critical need of an increased and educated workforce.

New study shows that the semiconductor industry is the No. 1 driver of growth for the U.S. economy, providing jobs for 260,000 people and creating an additional 1.4 millions jobs for people who provide goods and services for the industry.

U.S. chip companies command more than 50 percent of the global market.1999

1999

1999 became known as the "year of recovery" for the semiconductor industry. Sales shift the demand from PCs to communications products.

The Congress passed and the President signed a Y2K bill to limit frivolous lawsuits against American businesses and industries.

The 1st two Focus Centers become fully operational at UC Berkeley and Georgia Tech.

The U.S. and China agreed to the terms of China's accession to the WTO.

2000

In 2000, the technology roadmap becomes international and the 2000 International Roadmap for Semiconductors (ITRS) is released.

Worldwide semiconductor sales exceed $200 billion for the first time in semiconductor history.

The semiconductor industry becomes recognized by the US Bureau of Labor andranked 2nd in the nation for the lowest injury and illness rate out of 208 durable goods manufacturing industries.

Posted by Charles Jannuzi



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