SME industry experienced considerable success in penetrating the Japanese market, enjoying an 80 percent share in Tokyo Electron Limited TEL , today the largest Japanese SME company, started as a specialized distributor of foreign-made equipment, gaining considerable marketing and technological expertise. Through links with U. Although TEL is not closely linked through financial ties to any of its major Japanese customers, other Japanese equipment makers started as subsidiaries or closely affiliated suppliers of the major Japanese semiconductor companies. Despite rapid gains in consumer electronics through the s, in the early s Japan's electronics industry appeared to be falling behind the rapid pace of innovation set by the United States in key areas such as computers and advanced integrated circuits.
The coordinated industry government strategy that was formulated at that time is today seen as one of the great success stories of Japan's industrial policy. Japanese device makers used a conservative approach to product and process design in order to beat U. With success in the rapidly growing DRAM market, Japanese device makers expanded capacity and purchases of domestic machinery, while U.
How IT Shapes Competition
These trends set the stage for dramatic shifts in market share. Between and , the share of the world SME market held by Japanese companies rose from 18 to 39 percent, while the share held by U. The foremost of these was lithography equipment used to transfer circuit patterns to silicon wafers. As a result, lithography is. Stowsky mentions direct and indirect contributions of the VLSI program to the development of Nikon's wafer steppers; Canon's projection aligners; E-beam lithography equipment developed by Hitachi, Toshiba and JEOL; Advantest's testers; Ulvac's ion implantation system; Nikon's first X-ray aligners; Dai Nippon Printing's X-ray masks; Kokusai Electric's deposition-and-etch systems and ion implanters; Tokuda's dry etch machinery; and Ando Electric's testers.
Semiconductor Wafer Processing Equipment Industry, Semiconductor manufacturing equipment can be divided into the machines used in the "front-end" processes of wafer fabrication and those used in the "back-end" assembly and testing stages. In the former category are lithography, deposition including chemical vapor deposition or CVD , etch and strip, ion implantation, and thermal processing. In optical wafer steppers, the largest lithography product category, the share of the world market held by U. By the late s and early s, Japanese SME firms were extending and consolidating their gains in the U.
SME vendors. During this period, IBM and other U. As in other high-technology and manufacturing industries in which Japanese companies made rapid gains in the s and s, the situation in the SME industry has shifted considerably in recent years. The share of the world SME market held by U. Several factors have contributed to halting the decline of the U.
SME industry's competitive position in recent years. The most obvious has been a shift in market trends. A consistent trend in semiconductor manufacturing has been the increase in minimum efficient scale. However, the payback on a billion-dollar fab now occurs in as little as three to five years. At the same time, the cost presented by equipment has risen from 40 to 70 percent of the total, partly due to the need to assure redundancy if equipment should break down.
Just as the earlier problems suffered by U.
SME rebound. These segments of the market have grown considerably in recent years, particularly the microprocessor market, which is dominated by Intel. Consequently, capital. Perkin-Elmer's lithography assets were eventually split up. The E-beam business was spun off into a separate company, Etec, owned by a coalition of companies, including IBM.
A controlling interest in the optical lithography operation was bought by Silicon Valley Group. The Department of Justice then challenged the sale on antitrust grounds but the challenge was turned down in court. Perhaps the most important end-market development has been the breaking of Japan's dominance of the DRAM market by the entry of Samsung and other Korean conglomerates. SME vendors have enjoyed a higher market share in Korea than in Japan. Although the rapid improvement in business climate enjoyed by U. SME vendors in the period has leveled off, and some parts of the chip industry have suffered serious slumps, U.
SME vendors should continue to enjoy relatively favorable market trends in the next few years.
Particularly interesting is the trend toward increased investments by Japanese chipmakers in capacity outside Japan, including several facilities being built in partnership with U. Some U. Since Japan is a major component of the overall market, participation there is necessary to gain a return on investment in new technologies. Box develops a metric for associating market share and the ability to invest in technology development.
A key question is whether Japanese-owned fabrication facilities outside Japan will bring increased opportunities for U.
Information Technology and Industrial Competitiveness : How It' Shapes Competition - faulabhinttus.tk
SME vendors with competitive equipment or whether Japanese chipmakers will find it desirable to maintain a high level of reliance on Japanese equipment vendors in their overseas facilities. The Japanese semiconductor industry built its competitive advantage on high levels of investment and continuous improvement in manufacturing practices, which enabled higher yields and lower costs.
By the mids, industry observers had noted a considerable gap in yields between Japanese and U. An ongoing study of semiconductor manufacturing performance by the University of California at Berkeley indicates. According to Dataquest data, Japanese equipment spending was almost double that of North America in and In the capital spending levels were about even.
Several U. The impact of continued difficulties in accessing the Japanese market on the ability of U.
2016 Global Manufacturing Competitiveness Index
SME industry at the margin:. Broken down by region, U. From the annual reports of 10 of the top public U. SME vendors, based on sales, U. Based on U. For example, had U. A number of U. Expected accuracy could be improved with more complete data. VLSI Research data were used here because market share by vendor nationality was provided. This group accounts for about one-fourth of U. SME industry sales.
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Although some caution should be used in interpreting the interim results because of the small sample size, the study indicates that Japanese semiconductor manufacturers, through utilizing superior manufacturing practices, still achieve higher manufacturing performance relative to U.
The practices associated with superior fabs include 1 strong information systems capability to provide process control and the collection and analysis of data, 2 organizational capability focused on problem recognition and solving, 3 necessary internal technical talent and vendor support to implement improvements continuously, and 4 effective procedures for managing the introduction of new process flows.
These practices are easier to implement in the Japanese context because of the human resource environment of Japanese companies and because of the characteristic close working relationships between equipment vendors and device makers, which were discussed above. A new emphasis that appears to be paying considerable dividends is a shift from total quality management to total preventive maintenance TPM , or from perfect product to perfect machine.
In many areas of the SME market, U. Because of its superior technology and investment in an independent sales and service structure in Japan, sales in Japan have grown rapidly, in line with overall performance. Department of Defense, has made a significant contribution to encouraging closer customer-supplier ties in semiconductor manufacturing.
The consortium's experience also illustrates the limits of policy solutions focused solely on technology development in maintaining or restoring U. In its five-year, three-phase program aimed at demonstrating. Robert C. Leachman, ed. Despite successful development by GCA of the XLS and advanced steppers, judged by a number of industry observers to be superior to the latest generation of Nikon and Canon steppers, GCA succeeded in winning only one major production contract during the investment period for sub-. Because high quality support for lithography equipment is essential to chipmakers, these doubts discouraged purchases from the U.
In GCA was shut down after several efforts to spin the firm off from its parent, General Signal, failed. Throughout semiconductor device makers announced new plans for expanded capacity. However, SVG had booked enough orders to allow it to walk away from the agreement and not seriously impair its long-term prospects in the lithography business.
Information Technology and Industrial Competitiveness
Its experience to date has illustrated several important lessons and highlighted unresolved questions about how U. See Lucien P. In this case there were a number of options potentially available to government and industry had it been decided that keeping GCA afloat would advance significant U. Under Section of the Trade Promotion Act, imported steppers could have been determined to endanger national security, and tariff protection for U.
Several new public-private research programs have been launched in the past few years. The prospects for the U. SME industry will remain tightly linked to those of U. Due to its relatively small size and segmentation, the industry is likely to retain a more "national" character in terms of employment and technology base, compared with device makers that are increasingly global, and other industries examined in this report. Despite considerable gains by US. This is likely to persist in the future.
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Although the US.