Market place: a turning point for chip makers

Article Abstract:

The semiconductor trade agreement between the United States and Japan is set to expire in the near future. Negotiations are under way to renew the agreement under which, the Japanese conceded up to 20 percent of their domestic market to United States manufacturers of dynamic random access memory (DRAM) devices. The agreement, which was intended to curb the spiralling success of the Japanese industry, ended up bringing it enormous profits. The newly developed 4Mbyte DRAM microprocessors were set to replace the older 1Mbyte products but have failed to do so for a number of reasons. Chief among them is the extremely low price that the old microprocessors now sell for, as low as $4 or so depending on volume. The industry is reluctant to migrate to a newer computer-brain, when it can reap so much profit from the older not-yet-outdated technology. While many Japanese companies openly condemn any new trade agreement, many privately say they would like to see it reestablished in order to maintain the large profit margins already established.

Laws, regulations and rules, Microprocessor, CPUs (Central processing units), Microprocessors, Negotiations, Market share, National Government, Government Regulation, Negotiation

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A.T.&T. and NEC in chip accord

Article Abstract:

AT&T and NEC Corp agree to cooperate on chip technologies over the next five years. The agreement is part of an AT&T strategy to find partners to help fill holes in the company's product line, rather than try to develop everything itself. The agreement will transfer NEC technology to AT&T so that the telephone company can produce certain application-specific integrated circuits (ASICs). AT&T will have rights to market, design and produce the chips. In return, NEC will receive computer-aided design tools from AT&T. NEC also agrees to include more AT&T semiconductors in NEC computers and communications systems.

T, NEC Corp., Application specific integrated circuits, American Telephone and Telegraph Co., Technology transfer, Application-Specific Integrated Circuit, Foreign Investment

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I.B.M. chief issues threat on U.S. tariff: high duty on screens may result in further overseas production

Article Abstract:

John F. Akers, chairman of IBM Corp, says his company might be forced to move production of some of its smaller machines out of the US due to the stringent anti-dumping duty that was imposed on Japanese-manufactured liquid crystal display (LCD) screens used in portable computers. Many computer manufacturers in the US have complained about the 63 percent tariff, which they say decreases their competitive ability against the Japanese. Toshiba Corp and Apple have begun to move their production of portable computers out of the US, saying that the the tariff is a protect-America policy gone wrong.

Electronic computers, Office machines, not elsewhere classified, Electronic components, not elsewhere classified, Management, Computer industry, Foreign operations, International Business Machines Corp., IBM, International aspects, Liquid crystal displays, Laptop computers, Portable computers, Antidumping duties, Laptop/Portable Computer, LCD Display, Akers, John

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