The semiconductor market is projected to reach a historic high of $626 billion by 2024, making it central to various advanced technologies such as AI and quantum computing. Japan was a leading player in this market during the late 20th century, holding over half of the global market share in the semiconductor industry at its peak. The decline began after structural rigidities and policy decisions, such as the U.S.-Japan Semiconductor Agreement, undermined its competitiveness. By 2024, Japan has not a single company in the top ten semiconductor rankings, marking a stark contrast from the past where firms like NEC and Toshiba were leaders in the field.
The conditions leading to this decline were multifaceted, involving a combination of policy missteps, cultural issues within companies, and a lack of responsiveness to market shifts towards new technologies such as logic chips and ASICs. Japan’s vertical integration model, which initially promoted efficiency, became a disadvantage as global competitors adopted more flexible business models. Additionally, the aftermath of Japan’s economic bubble led to significant losses in investment and talent, exacerbating its inability to compete with rising firms like Samsung, which quickly adapted and exploited new market opportunities. In summary, Japan must now focus on rebuilding its semiconductor ecosystem to ensure a sustainable future in this crucial industry.
👉 Pročitaj original: CIO Magazine
