kruger@whyvax.dec.com (Hart for CCCP chief in '88) (01/08/88)
Yes, artificially inflated high prices are bad. Yes, protecting our industry is important. BUT -- you can't go on protecting a weak industry forever. American silicon manufacturers have to sink or swim on their own; the government is really out of line to protect them with tarriffs, because in the long run, that leads to retribution, trade stagnation, and hostility all around. I believe the best solution is to give fair incentives (not enormous, just fair)to electronics firms to form conglomerates for common research. Currently, our industry is hampered by anti-trust laws. On the other hand, if you remove all controls, various industries will begin price fixing. However, that cannot happen when there is competition from OUTSIDE. In other words, I would like to see the anti-trust laws waived for industries where outside competition from huge conglomerates threatens the survival of "mere" corporations. In order to survive a price war, you have to be big enough to ride it out. If a few of the large semiconductor houses shared their major research costs, it would be much easier for them to simply match the "lower than cost" prices. Remember -- when the Japanese companies dump chips, THEY are LOSING money. If you can afford to respond in kind, they will eventually stop. dov