Quality is Not Strategy, It’s just “Surplus Quality”: A Review of the Successes and Failures of “Choose and Focus” strategies in the Japanese Semi-Conductor Industry

Abstract

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Japan was once the leader of the world semiconductor industry.  Not long ago, Japan was forced to exit the largest segment of the industry (DRAM) due to a sustained lack of profitability.  In this paper we briefly examine why Japan lost a key position in the industry, where and why Japan remains strong in other segments and why Japan must apply the new rules of corporate governance to gain a competitive edge in the emerging SoC market.