Technology, power and structure: consequences for US semiconductor competitiveness
by John W. Kanz
International Journal of Technology Management (IJTM), Vol. 9, No. 5/6/7, 1994

Abstract: Many observers have noted an inherent structural disadvantage in the US semiconductor industry arising from its lack of large, vertically integrated firms. An opposing view holds that its historically high level of design innovation provides a unique long-term competitive edge. This paper examines this prolonged debate in the light of shifting, complex and growing interdependencies among competitors, technologies, upstream equipment and materials suppliers, and the downstream customer base. Relative technological advantages and key industry trends in the USA and Japan are identified and contrasted. Present and probable shifts in supplier-customer power relationships are explored in the context of industry history and structural/technological trends. These are then discussed from the perspective of more general evolutions in high-technology industries, and the consequences of such changes are analysed.

Online publication date: Sat, 23-May-2009

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