One of the semiconductor industry's legendary CEOs, Tsuyoshi Kawanishi, who led Toshiba in the 1980s and 90s, makes some charming observations about the nature of the chip business in his book 'Chip Management'.
Why is the semiconductor industry like growing lettuce?
Good quality seeds and fertile soil guarantee a good harvest. You need to time the fertiliser just right. Insects will eat your harvest if you are not careful. Neglect your field and you will get weeds. The weather will determine the harvest. The price drops when you over produce.
Why is the semiconductor industry like tennis?
You have to hit the ball to places in the court where your opponent isn’t. The game makes you sweat a lot. You need 90% ability and 10 % luck. It requires long periods of patience and a moment of smash.
Why is the semiconductor industry like the fishing industry?
It is spread over the seven seas. It requires bait, nets and technique. You catch some and you lose some. People get mad at you when you catch too much. There is still a lot we don’t understand about the industry. There is always the chance of a storm and a shipwreck. Japanese cannot live without it.
Why is the semiconductor industry like chess?
The stronger player wins. Clever players can take advantage of the opponent. You need both good judgement and intuition. Standard strategies are helpful but not almighty. Offence is better than defence. Overwhelming victory will lead to disputes and squabbles.
TOMORROW: THE TEN FASTEST GROWING IC APPLICATIONS
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