Us Japan Semiconductor Agreement

2) regulation of the sale of Japanese semiconductor companies in third countries; Different positions. A number of attributes of American and Japanese industry suggest why they occupy different competitive positions and show that unfair policy is not responsible. Large integrated Japanese producers are generally very competitive in their own markets and in foreign markets. Most sell by supplying their consumer goods activities. They are usually the most competitive in low-end computer chips. Since most U.S. companies only manufacture semiconductors, they do not have a guaranteed market for many of their products. However, they tend to have a comparative advantage in the manufacture of custom specialized chips. In addition to trying to limit sales of Japanese chips to the United States, U.S.

producers have sought guarantees on a certain share of the Japanese semiconductor market. However, U.S. companies have not been able to identify specific barriers that restrict the entry of U.S. computer chips into Japan. Nevertheless, they asserted that in some ways the structure of the Japanese market or Japanese business practices are unfairly limited in the sale of American industrial products. This was a plausible assertion, as many Japanese business practices and informal relationships make it very difficult for foreign products to compete in Japan. U.S. semiconductor manufacturers claim that Japanese companies are “harming” their chips in the U.S. and other foreign markets, meaning chips are typically sold below production costs.

However, such a practice is not inherently unfair. For example, when a U.S. company has a large stock of products that it has difficulty selling, it is reasonable to reduce its prices below production costs in order to get rid of those products and reduce its losses. Some of the pricing decisions made by Japanese semiconductor companies are expected to match competition from cheaper Korean chips. 4) Encourage the sale of U.S.-made storage chips in Japan with the goal of gaining at least 10 percent of the Japanese market for Americans. If necessary, the agreement implies that the Japanese government will force its industry to limit production, creating a shortage that could be filled by American chips. 3) Set the price at which Japanese companies sell semiconductors in collaboration with the U.S. government; In 1957, General Electric Company, Raytheon Company, RCA Corporation, Sylvania Company and Westinghouse Electric Corporation were the largest U.S. semiconductor manufacturers, consisting primarily of transistors at that time.

These companies produced transistors for their own consumer products, such as radios and televisions, as well as for sale to other companies. In the 1960s, many small U.S. companies entered the semiconductor market, led by Intel Corporation and Fairchild Corporation.