Case 216 - SIA, Japanese Electronics Giants, and Global Competition in Semiconductors

Ryan, Michael P.

The semiconductor dispute was perhaps the most challenging aspect of the overall U.S.-Japan trade conflict during the 1980s because it was a harbinger of the trade disputes to come in the 1990s. The primary purpose of this case study is to make clear that the dispute was rooted in the vastly different industrial organizations and corporate strategies of the Japanese and American producers. The former were large, integrated electronics producers, while the latter included integrated electronics producers and many specialized, upstart chip makers. The case thus well illustrates the central differences between Japanese and U.S. political economy and their implications for international trade and competition. It could usefully be paired with “The U.S.-Japanese Semiconductor Problem” (Case Study 113).