When The US IC Industry Was Rocked On Its Heels

At a conference in 1979 Ed Hayes of HP set the US chip industry back on his heels.

In his presentation he showed that the quality of Japanese ICs was not only better than the quality of US ICs it was an order of magnitude better.

What’s more, added Hayes, the Japanese delivered on time.

US President Dwight D Eisenhower had asked Motorola CEO Bob Galvin to help the Japanese build a semiconductor industry and the Americans had licensed their products and processes to Japanese companies.

So it was galling for the Americans to find that they had been overtaken by their proteges.

By 1984, the Japanese had taken 47% of the industry’s biggest product segment, DRAM, and by 1987 they had 85% of the DRAM business and half of the entire semiconductor market.

When the Americans realized that Japanese superiority had come from their adoption of the quality practices preached by two Americans, William Deming and Joseph Juran, they figured out what they needed to do to turn the situation round.

Tags: chip industry, japanese companies, motorola

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8 Comments

  1. David Manners
    September 04, 2012 09:53

    Like Bonny Prince Charlie and numerous DRAM fabs, Keith

  2. Keith
    September 04, 2012 08:14

    It came and went, David.

  3. David Manners
    September 03, 2012 19:00

    So technology hasn’t reached Scotland yet?

  4. Keith
    September 03, 2012 18:51

    Except you won’t be able to afford rice, as its an import from those countries that technology has beeen exported to… try porridge instead.

  5. Mr Cynical
    September 03, 2012 12:19

    Anonymous, that’s exactly what you will be able to afford when all the technology has gone.

  6. David Manners
    September 03, 2012 11:41

    Absolutely. That’s the George Osborne spirit [Anonymous]

  7. Anonymous
    September 03, 2012 10:53

    Quite.
    We should all be working 18 hours a day for two bowls of rice.

  8. Mr Cynical
    August 31, 2012 16:57

    Yet another example of exporting expertise, we (The West) did not learn and continued to export to Taiwan then China, then …… (India). Whilst simultaneously loading ourselves up with holidays,pension schemes,CE marks sick pay etc just to ensure that we cannot be competitive!

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