Article Abstract:
Trade policy and the learning curve play major roles in the production of semiconductor memory chips. With dynamic random access memories (DRAM), the evolution of prices is better assessed by economies of scale rather than by the learning curve, which works best for erasable programmable read only memories (EPROM). Price competition also appears more intense in DRAMs than in EPROMs. On the other hand, the antidumping policy is more favorable to EPROMs and DRAM wafer plants, but not for European Union producers in DRAMs.
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Article Abstract:
South Korea pursues an export-dominated policy while Taiwan follows an import-substitution policy in the semiconductor industry. Having first expanded its design sector, Taiwan is now focusing on its manufacturing sector, while South Korea, having developed its manufacturing sector first, is strengthening its design sector. However, Taiwan lags behind South Korea because of the indirect path it has taken, the inadequacy of the design sector and its weak manufacturing sector.
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Article Abstract:
Product standards and their role in determining the evolution of market structure in semiconductors, are examined.
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