||This research seeks to analyze the competitiveness of Japan’s semiconductor industry by using technological innovation as an indicator of their performance. Japan has shown outstanding performance in the areas of managing human resources, research and development funding. |
Technology is the driving power behind Japan’s success in establishing itself as a name in the global community. Semiconductors have acted as an important electronic component in the technological industries due to its wide range of potential uses. Given the importance of the semiconductor industry, the Japanese government has devoted a lot of their resources in developing their semiconductors. Ever since they began their initiatives towards actively developing the semiconductors, the Japanese have been able to establish themselves as the market leader of semiconductors with the world’s second largest market share, one position behind the Americans. The Japanese are aware of the close connection which the semiconductors have with the other major electronic industries, thus they have put policies and development plans in place to support the semiconductors’ industries.
After the 21st century, the Asia-Pacific region (not including Japan) has expanded its market shares, exceeding the market share of the USA and Japan. Within the Asia-Pacific region, Korea has the largest market share. The only two countries which have better development in their semiconductors compared to the Koreans are the USA and Japan. Given that, this research aims to make a comparison of both the Korean and Japanese semiconductor industries to determine their competitiveness.
We can conduct the research through studying the imports and exports volume between the two countries, examine revenues of the different semiconductor companies and also analysis the semiconductor company's R & D funding and patents to allow us to come up with comparative results. The results showed that even though South Korea's Samsung Electronics R & D funding and revenue are way ahead of major Japanese semiconductor companies, but the overall look of the semiconductor industry of Korea is still inferior to Japan as the Japanese semiconductor market share is larger as a whole. In addition, the Japanese semiconductor R & D capabilities are better than South Korea.
Through the semiconductor trade between the two countries, it is found out that there is a larger export of Japanese semiconductor to South Korea. Therefore this reflects that despite South Korea’s expertise in semiconductor technology, it would still be necessary to rely on the Japanese semiconductor technology.