[comp.sys.ibm.pc] US-Japan chip pact

nelson_p@apollo.uucp (04/01/88)

 We may be getting a bit far afielfd of this newsgroup but:

>There is a basic assumption made in this response that I think is
>invalid.  Namely, that this is a free market.  My understanding is that
>this is about as far from the truth as possible.  Consider the following
>basic scenario:
>
>   1.  The Japanese government selects some new industry that they want
>       to develop.

>  [  more Japan - bashing deleted ]

 This does not explain the whole picture.   First of all, American
 industries get government breaks too, or at least they have in
 the past, in the form of tax breaks on R&D, accelerated depreciation
 allowances, big DoD contracts, etc.  The US also has cheaper raw
 materials and energy costs.  Furthermore, in servicing our domestic
 market they also have lower transportation and communication costs.

 A better explanation of why we are being beaten, not just in Japan 
 but HERE IN THE U.S., is illustrated by the following:

   A Hewlett Packard study a few years ago showed that Japanese 
   RAMs had a lower defect rate than ones from U.S. companies.

   At my last job we found that (U.S. made) SEEQ EPROMs (27256's)
   we were using had a dramatically higher failure rate the the
   equivalent parts from Hitachi.   We switched to Hitachi.

   Check out Consumer Reports magazine.  Look at the rate-of-repair
   figures for Fords, Chryslers and Chevy's and compare them to the
   figures for Toyotas, and Nissans.
 
   The Japanese have beat the U.S. to market with high-density RAMs
   for the last two generations of such chips.  
   
   Europe, which *does* all the government protection that you suggest
   has not fared any better against the Japanese than we have.  
                      
 American companies have been unwilling to make a serious committment 
 to quality even after paying lip service to it for the last 10 years.
 They have also lagged behind in research and new product development.
 They have abandonded whole markets (optics, photography, consumer 
 electronics) to the Japanese.  They stupidly refused to see the hand-
 writing on the wall and modernize and innovate to compete when the
 Japanese invasion started.  I can still remember when the Japanese 
 were developing modern, automated production methods, Zenith was
 promoting the 'advantages' of building their circuitry completely by
 hand in their ads.  
 
 It is not just the success of companies that is at stake here.  Our
 nation's economic future and even national security are at risk by
 U.S. companies' unwillingness to create higher quality products and
 bring them to market in a timely manner.  It was once said that 'What's
 good for GM is good for America'.  There is more than a little truth 
 in that.  GM's management, by failing to compete ought to be regarded 
 as criminals or traitors to their country.   Blaming the Japanese is
 not going to change the fact that they have better products, more
 advanced technology, and more loyal workers.   Their educational system
 produces a much higher literacy rate and more engineers.  Ours produces
 lawyers and MBA's.  

 We have met the enemy, as Pogo said, and he is us.

                                        --Peter Nelson


    

john@jclyde.UUCP (John B. Meaders Jr.) (04/03/88)

In article <3b3430a9.44e6@apollo.uucp> nelson_p@apollo.uucp writes:
>
>                                                Their educational system
> produces a much higher literacy rate and more engineers.  Ours produces
> lawyers and MBA's.  

You have hit upon the problem.  We have way to many damned lawyers and MBAs.
These are the geeks that write the laws and interpret them.  They get so
caught up in the complexity of their laws that the rest of us have a difficult
time deciphering them.  All of you lawyers and MBA types feel free to flame,
I'm a soon to be Petroleum Engineer (UT Austin '88).  What we need are more
engineers who know how to make things work, not a bunch of marketing and
"legalese" idiots.
-- 
John B. Meaders, Jr.  1114 Camino La Costa #3083, Austin, TX  78752
ATT:  Voice:  +1 (512) 451-5038  Data:  +1 (512) 371-0550
UUCP:   ...!uunet!utastro!bigtex!jclyde!john  or  john@jclyde.UUCP

Ralf.Brown@B.GP.CS.CMU.EDU (04/04/88)

In article <656@jclyde.UUCP>, john@jclyde.UUCP (John B. Meaders Jr.) writes:
}You have hit upon the problem.  We have way to many damned lawyers and MBAs.
}These are the geeks that write the laws and interpret them.  They get so
}caught up in the complexity of their laws that the rest of us have a difficult
}time deciphering them.  All of you lawyers and MBA types feel free to flame,
}I'm a soon to be Petroleum Engineer (UT Austin '88).  What we need are more
}engineers who know how to make things work, not a bunch of marketing and
}"legalese" idiots.

About a year ago, someone had something along the following lines in his/her 
.sig:

        Engineers:Lawyers   Japan 400:1   USA 1:400

I also recall seeing somewhere that the US (with ~6% of the world's 
population) has 2/3 of the world's lawyers.

--
{harvard,ucbvax}!b.gp.cs.cmu.edu!ralf -=-=- DISCLAIMER? I claimed something?
ARPA: RALF@CS.CMU.EDU  FIDO: Ralf Brown 1:129/31  BIT: RALF%CS.CMU.EDU@CMUCCVMA 
TalkNet: (school) | "Tolerance means excusing the mistakes others make.
(412)268-3053     |  Tact means not noticing them." --Arthur Schnitzler

dhesi@bsu-cs.UUCP (Rahul Dhesi) (04/05/88)

I once attended a presentation by a representative from Texas
Instruments.  One person in the audience asked why TI had set up a chip
assembly line in Japan.  The TI person answered that TI tried to make
the same chip here in the USA and had a very high failure rate.  Then
TI set up an an assembly line in Japan that uses Japanese labor and was
able to successfully make the chip.
-- 
Rahul Dhesi         UUCP:  <backbones>!{iuvax,pur-ee,uunet}!bsu-cs!dhesi

jru@etn-rad.UUCP (John Unekis) (04/06/88)

In article <656@jclyde.UUCP> john@jclyde.UUCP (John B. Meaders Jr.) writes:
>In article <3b3430a9.44e6@apollo.uucp> nelson_p@apollo.uucp writes:
>>...       Their educational system
>> produces a much higher literacy rate and more engineers.  Ours produces
>> lawyers and MBA's.  ...
>You have hit upon the problem.  We have way to many damned lawyers and MBAs.
>These are the geeks that write the laws and interpret them.  They get so
>....  What we need are more
>engineers who know how to make things work, not a bunch of marketing and
>legalese idiots.

Once upon a time there was a land that was free of nasty creatures like
lawyers and MBA's. Everyone was free to do what they pleased, so they did.
They hacked each other to bits with stone axes, lived in the dirt, and
ate bugs. Then came civilization, where nasty people like Kings imposed
horrible laws on people that made them stop killing each other and taking 
things by force. Suddenly people were without amusement, so they were forced
to invent new ways to spend their time, like studying nature and building 
machinery. But since they were still free spirited barbarians at heart, they
took to stealing other peoples ideas and property. So more nasty laws were
imposed to repress this free expression of their natural larcenous tendencies.
Then there had to be someone to argue about the laws when conflicts arose, so
lawyers came into being. 
Whats the point? Simply that lawyers are a result of our human greed and 
mistrust, they are not the cause. I have been an engineer (making computer 
systems) for nine years, and I have come to appreciate how valuable the law
can be. Just try producing a new circuit board for the IBM PC without a 
patent on it. In two weeks some clone maker will have copied it, and will steal
all the profit that should have been the reward of your efforts. If people 
were good as their word, if a handshake was an absolute bond and no one ever
broke a deal, there would be no lawyers. But we as a civilization are basically
dishonest and greedy, and our ability to function is based on laws that 
regulate our conduct. 
If you want to do away with lawyers, go find a few honest people that keep 
their promises. Then put them in a business where they lose money by telling
the truth(like marketeers in the high-tech computer market, where you have
to sell next years features as current products just to get the customers 
attention). If they hold up their moral standards, you may just have started a 
new age of lawyerless civlization. But I've never seen it happen.


----------------------------------------------------------------
Mine, mine, all mine! - Daffy Duck
It's only my opinion - Me
----------------------------------------------------------------
to stealing each others ideas, and 

tim@cit-vax.Caltech.Edu (Timothy L. Kay) (04/08/88)

I don't know what this has to  do with the  original subject, but what
the heck.  I'll bet that some of you are interested in my comments.

John Unekis writes:

> I have been an engineer (making computer systems)  for nine years, and
> I have  come  to appreciate how   valuable  the law  can  be. Just try
> producing a new circuit board  for the IBM PC  without a patent on it.
> In two weeks some clone maker will have  copied it, and will steal all
> the profit that should have been the reward of your efforts.

Times are changing.  In this  day  and age, a manufacturer had  better
either get a patent or STOP TRYING TO GOUGE THE  CONSUMER.  After all,
add-in cards aren't all that hard  to make these  days (or the cloners
wouldn't be able to duplicate them so easily, would they?).  You don't
see Seagate 251-1 clones, do  you?  I claim this is  because hard disk
drives  are  harder to  make.  But,  just  as importantly,  Seagate is
selling 251-1's at a reasonable price,  and  items that get cloned are
those things that are sold at too much of a premium.

Let's take Hercules as an example.  They built a product that was very
good.  After it caught on, Hercules had two choices:

	1)  "Let's be responsive to customer needs, and offer the
	    board at a reasonable price," or,

	2)  "Let's keep the price unreasonably high, so there
	    is enormous room for the competition to undercut
	    us and still make a good profit."

After all, Hercules had been making the board for several years before
the clones started appearing which should give them  a cost advantage.
Furthermore, they had a reputation  which  would  cause people to  pay
*slightly* more for the genuine  board than for  a clone.   (The  real
Hercules board even had an unprecedented two-year warranty.)
	    
Unfortunately,  they didn't  see  the  writing  on  the  wall, and now
everybody and his sister is cloning Hercules cards.  I don't see *any*
real Hercules cards anymore.   I'll   bet that most people   that  are
buying "monochrome graphics" these days don't  even know that it means
"Hercules compatibility."

I would never pay $60 for  a clone card if  I could get the real thing
for, perhaps, $90.  But I won't pay  hundreds of dollars  for the real
thing.

Rather than complain about being ripped off, American companies should
work a  little harder to  be responsive to  the customers, and thereby
stay  one or two  steps ahead of the  cloners.   This is called  value
adding.

Tim