Another "Japan Inc." attempt in Semiconductors? Time to address the white elephant in the room: governance in Japan
I recently came across this great article: « 日本の「半導体産業」は復活しない…台湾の最先端企業を誘致しても「ムダ」なワケ 技術ではない、経営が問題なのだ ». Or “Japan's Semiconductor Industry Will Not Revive... Why Attracting Taiwan's Most Advanced Companies Is a Waste of Time: It's Not the Technology, It's the Management, by Professor Noguchi or Hitotsubashi University. https://lnkd.in/g7DTNn9
But my thought is that it is beyond just management. The decline of the Japanese semiconductor industry is prime example of the effects of an ill functioning governance system. I am not thinking of corrupt practices but more from the perspective that management, stakeholders, shareholders and government did not have balanced discussion throughout all these years.
There were a couple of inflection points that I think determined the downward trend of the Japanese semi industry from a dominating 50% share.
I believe there are many areas ripe for revival but some of the traditional Japanese practices must be tossed aside proactively to generate positive chaos and to have things to realign properly. So, it’s not just management.
Japan still has major champions and leaders in the semiconductor eco-systems. Leaders in semiconductor process equipment, test equipment, manufacturing equipment, lead frames, package compounds, wafers.
Instead of trying to dictate industrial policies I suggest that politicians and bureaucrat should clear the road for change: incentivize employees to jump ship, encourage specialization, real tax breaks into start-up investments and simple things like banning banning sex based school and company uniforms. Last time the government tried to create a Japan foundry, they were focusing on a manufacturing node which was already there…..