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.

| To page top | To Part 2 index |

“Mr. Shimura’s Essays with Historic Photos”    Semiconductor History Museum of Japan
Society of Semiconductor Industry Specialists (SSIS), General Incorporated Association
Shiota Bldg 202, 6-27-10 Shinjuku, Shinjuku-ku, Tokyo Japan, 160-0022, Tel:81-3-6457-3245 Fax:81-3-6457-3246 E-mail:info@ssis.or.jp Url:http://www.ssis.or.jp
All the contents including the texts and the photos herein published are neither allowed to be reproduced, nor copied without permission of SSIS.
Copyright (C) 2016, SSIS All Rights Reserved