Japanese chip makers want to fight the battle to seek a winning strategy

Introduction: in late 80s, Japan more than the United States dominated the global computer chip market, it is also seen as signs of economic recession in the United States and Japan's economic growth a. Now, the situation has reversed. Intel and other chip giant has surpassed Japan's chip manufacturers occupy a dominant position in the global chip market. Japanese chip manufacturers to change this situation, to regain its dominance in the global chip market, is actively taking measures to seek effective strategies. At present, Japan's share in the global chip market is only half of last century, in 80s at the same time, Intel has grown into the world's largest and most profitable chip manufacturers. In the Japanese chip industry boom, Intel and South Korea's Samsung Electronics is not even known. According to market research firm iSuppli data, and now Intel and Samsung electronics market share is the sum of the total share of Japan's 20 large chip manufacturers.

Japanese chip makers are trying to reverse this decline by strengthening cooperation, either through joint sharing of the cost of the chip factory construction, or through a thorough integration of the way. In December 28th, Japan's Hitachi, Toshiba and chip maker Renesas technology jointly announced the related matters are jointly build a semiconductor factory talks, this project also received the support of the Japanese government. This is the latest action taken by the Japanese chip makers. According to the Japanese flag, the Japanese media named the planned factory "Rising Sun (Xu Ri)" chip factory.

Two years ago, the Japanese chip manufacturers have conducted cooperation in order to accumulate all parties to participate in global competition. However, due to a series of mergers after the establishment of the company did not achieve the expected benefits, so this effort also ended in failure.

In the heyday of semiconductor chip industry in Japan, Japanese chip manufacturers accounted for 51% of the global semiconductor market share in the global market share of the three largest chip manufacturers are NEC, Toshiba and Hitachi, is also full of Japanese enterprises. According to iSuppli's data, the current Japanese chip manufacturers to produce semiconductor products together accounted for only 237 billion 300 million of the size of the global semiconductor market share of $23.4%. The world's top ten chip manufacturers in Japan accounted for only about three.

J. P. securities analyst Yoshiharu Izumi said: "the past ten years, the Japanese chip industry is a decline in the past ten years, half of the Japanese semiconductor companies to decline. Japan is in the middle of America and Asia, and the middle is shrinking."

The rise of Japanese chip makers has strongly stimulated them, which in the past had been the glory of japan. Over the years, the Japanese chip manufacturers have been at very low prices, to the domestic consumer electronics manufacturers to provide a variety of models of semiconductor products to help Japan to participate in international competition, export machinery.

While Japan dominates the global consumer electronics market, its sales are growing. However, the world's consumers are starting to buy cheaper TVs, laptops, and other products in other parts of Asia, and the Japanese chip industry is getting less and less. As a result of losses, many Japanese electronics companies may no longer carry out their chip business, and began to split the company into a number of separate companies. These spin off the establishment of a new company due to lack of funds, unable to Intel and Samsung, such as factories and production lines for billions of dollars in investment.

Many analysts believe that Japan, the only way to help the Japanese chip industry is to Intel, TI and other U.S. chip manufacturers to learn. Twenty years ago, these companies to deal with the strong strength of Japanese companies to conduct a thorough adjustment of business. They have succeeded in building a strong network of overseas sales, focusing on a small portion of the dominant product. Intel used to focus on the production of micro processing, has now dominated the global microprocessor market. TI is specializing in mobile phone chips, but also achieved success.

NEC electronics CEO Toshio Nakajima said: "in the 80s of last century, the United States came up with a new business strategy. It is worth noting that these American companies have learned how to compete." NEC electronics is a subsidiary of the Japanese electronics giant NEC specializing in the production of chips. NEC from 1988, the world's largest chip manufacturers gradually decline to the current tenth chip manufacturers.

Nakajima said that NEC may eventually focus on three types of chip business, but the company has not yet decided which of the three types of chips. He said: "to limit the scope of the product to a small number of products to take a lot of risk. These products must have a great advantage in order to be successful."

Toshiba has done quite well in this regard, the company focused on the product of professional cutting-edge products NAND flash memory chips, these chips are mainly used in digital cameras and apple iPod music player. According to iSuppli, it is expected that in 2005 Toshiba chip revenue growth of 7%.

The prospects for other Japanese chip makers are not optimistic. Suppli tracking of 20 Japanese chip manufacturers, is expected to have 12 in 2005 revenue may be reduced, including NEC electronics and Renesas Technology Corp. Renesas Technology Corp is a company of Hitachi and MITSUBISHI in 2003 with their electronic chip business establishment.

Problems faced by Japanese chip manufacturers