Mismanaged Trade?: Strategic Policy and the Semiconductor IndustryBrookings Institution Press, 2010 M12 1 - 489 pages The semiconductor industry is at the forefront of current tensions over international trade and investment in high technology industries. This book traces the struggle between U.S. and Japanese semiconductor producers from its origins in the 1950s to the novel experiment with "managed trade" embodied in the U.S.-Japan Semiconductor Trade Arrangements of 1986, and the current debate over continuation of elements of that agreement. Flamm provides a thorough analysis of this experiment and its consequences for U.S. semiconductor producers and users, and presents extensive discussion of patterns of competition within the semiconductor industry. Using a wealth of new data, he argues that a fundamentally new trade regime for high technology industries is needed to escape from the present impasse. He lays out the alternatives, from laissez-faire to managed trade, and argues strongly for a new set of international ground rules to regulate acceptable behavior by government and firms in high-tech industries. Flamm's detailed analysis of competition within the semiconductor industry will be of great value to those interested in the industrial organization of high-technology industries, as well as those concerned with trade and technology policy, international competition, and Japanese industrial policies. |
Contents
Introduction Challenges for Public Policy | 1 |
Technology and Industrial Structure in Semiconductors | 7 |
International Competition in Semiconductors | 18 |
Strategic Policy in the United States | 27 |
Table 16 US Industrial Consumption of Semiconductors by Consuming Sector Selected Years 196387 | 35 |
New Competition The Japanese Ascent in Semiconductors | 39 |
First Steps | 40 |
Early Exports in Electronics | 49 |
The Second Semiconductor Trade Arrangement | 223 |
Effects of the Semiconductor Trade Arrangement on Semiconductor Markets | 227 |
Impacts on Semiconductor Supply and Demand | 231 |
Impacts of Regional Price Differentials on Regional Welfare | 272 |
DRAMs versus EPROMs | 278 |
Import Promotion and the STA | 279 |
Conclusions | 292 |
The Economics of Contract Pricing | 294 |
The Seal of Approval | 52 |
Protecting the Japanese Market | 55 |
The Integrated Circuit Arrives in Japan | 59 |
A Secret Truce in the Patent War | 68 |
Battles in the LSI Market | 70 |
First Steps toward Liberalization and Dumping | 73 |
The Calculator War | 75 |
Further Liberalization and Crisis | 77 |
Into the Japanese Market | 88 |
NTT Arrives on the VLSI Scene | 90 |
The VLSI Project | 94 |
The Continuing Role of Government | 113 |
Dependence in Silicon | 119 |
Summary | 124 |
The Genesis of an American Trade Policy in Semiconductors 195984 | 127 |
A Threat to National Security 1959 | 128 |
Television Exports in the 1960s | 132 |
Competition in the 1970s | 136 |
Below Cost Dumping | 141 |
Quality Dumping | 144 |
Organizing a Response | 147 |
Competition Collusion or Predation? The 64K DRAM Wars | 148 |
Sectoral Negotiations | 153 |
The Semiconductor Trade Arrangement and Its Aftermath A Thumbnail Historical Sketch | 159 |
Evolution of the Semiconductor Trade Regime | 162 |
Initial Implementation of the Arrangement August 1986 to November 1987 | 175 |
The Privatization of Restraints December 1987 to Mid1989 | 201 |
Coordination Structures and High Price Stability 1989 to 1990 | 212 |
US Memories to the Rescue | 216 |
Construction of Estimated FMVs | 301 |
Dumping in DRAMs | 305 |
The Economic Rationality of BelowMarginalCost Pricing | 307 |
Cost Structures and Dumping in the Semiconductor Industry | 311 |
Modeling the Semiconductor Product Life Cycle | 313 |
Model Solution | 334 |
Conclusions | 358 |
A General Solution to the Problem of Optimal Capacity and Production Choice | 359 |
Detailed Solution with Specific Demand and Learning Curve Assumptions | 365 |
Strategic Issues Conceptions of Strategic | 372 |
Semiconductor Dependency and Strategic Trade Policy | 382 |
Anecdotal Evidence on Private Collusion | 396 |
Empirical Tests for Competition | 398 |
The Costs of Facing a Cartel | 405 |
More Complex Stories about Cartels | 415 |
Conclusion | 417 |
Solution of the Model with Strategic Behavior | 418 |
Conclusion Mismanaged Trade? | 425 |
Why Semiconductors? | 427 |
Strategic Policy in Semiconductors | 429 |
Effects of the Semiconductor Trade Arrangement | 433 |
Where Do We Stand? | 437 |
Pricing and Dumping | 442 |
Where Do We Go from Here? | 449 |
The Global Semiconductor Conference | 454 |
From Here to There | 455 |
Mismanaged Trade? | 457 |
461 | |
Other editions - View all
Mismanaged Trade?: Strategic Policy and the Semiconductor Industry Kenneth Flamm Limited preview - 2010 |
Mismanaged Trade?: Strategic Policy and the Semiconductor Industry Kenneth Flamm Limited preview - 2010 |
Mismanaged Trade?: Strategic Policy and the Semiconductor Industry Kenneth Flamm No preview available - 1996 |