38) The Absurd “20% Share Problem”
Heated negotiations between Japanese and US semiconductor officials regarding
the 20% share issue
In the already-heated US-Japan semiconductor war, it was a problem to expand
the market share of foreign semiconductors in the Japanese market that became
more and more complicated. Japanese manufacturers had a market share of 20%
in the US market, whereas US manufacturers had only about 10% in the Japanese
market. The US side asserted that their share also be raised equally to 20%.
In conclusion, in 1991, Michio Watanabe, the minister of International Trade
and Industry, and Clayton Yeutter, chief delegate of US Trade Representative
settled on a new agreement and said, in quite odd wording, "The government
of Japan recognizes that the US semiconductor industry expects 20% share or
more of foreign semiconductors in the Japanese market by the end of 1992,
and we think that this will be realized. The Government of Japan welcomes
the realization of this expectation. "
The miraculous realization of this target was solely by the painful procurement
efforts of Japanese users. Even now, there is still a memorable remark of
a major automobile procurement person saying with a bitter tone, "Even
if it might be thrown into the ocean after too much purchase, I still have
to buy it because of the government request."
The photograph is of Japan-US semiconductor government negotiations, in the
middle of a heated debate over the 20% share issue.
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