Fable: The Country Which Caught Up

There was once a country which wanted to boost its semiconductor manufacturing prowess.

At the time, the country’s semiconductor manufacturers were paying 10% of their sales in royalties to foreign companies.


So it put tariffs and quotas on semiconductor imports; required importers to license local firms with their technology; required local firms getting licenses to sub-license the technology to other local firms.


The country then organised its six largest semiconductor companies into three pairs and gave each pair $200 million over five years to crank up their capability.


Towards the end of that period the government shelled out another $65 million on a programme to become the leading semiconductor producer in the world.


It worked


Moral: Technology catch-up takes time and money.

Tags: fable, prowess, semiconductor manufacturers

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