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Japan Inc. faces choppy seas

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anon3860072
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re: Japan Inc. faces choppy seas
anon3860072   2/9/2012 6:07:51 AM
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In theory, any culture can execute blindingly fast once decision is made. The issue with Japanese companies is: 1) rarely any people at the driving seats dare to make any real & substantial change because of either the retirement benefit (did you notice many of them became consultants at subsidiary companies) or not wanting to upset their peers; 2) not paranoid enough (should hire Andy Grove to be national mentor:). Many of the management in Japan do not want to see the hard fact: a failed business translates to more lay-off eventually. At the same time, I believe that the Samurai spirit also plays the part. A good Samurai is proud of himself, what he has achieved in life, how he can behave in life. A failed leader by no means reflect a Samurai. Without the gut to push through a solution that is both unpopular to the social culture and will not likely be publicly endorsed by other peers, the leaders chose to keep quiet, walk the old path, or implement the superficial changes. Consequently, their companies will keep on failing. In fact, Sony is a tragedy. With movies, music, mobile phones, TVs, HiFis, MP3, Walkman, CD, computers, services, yet its valuation is so much smaller than Apple who is a late comer and a newbie in the world of consumer electronics. The biggest problem of Sony should be "silos between the various divisions". The 2nd problem of Sony is: it was not led by a visionary with enough charisma and the ability to understand "digitization makes the impossible possible". I wish many of the failing Japanese companies can get up on their feet again.

kurukku
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re: Japan Inc. faces choppy seas
kurukku   2/9/2012 7:21:15 AM
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I have seen many aged Japanese bosses underestimate or hate Western technology advancements, and try to isolate and confine themselves within Japan. Instead, they should acknowledge the technology advancements and try to bring better results with real Japanese spirit. They are deep, but not fast enough.

junko.yoshida
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re: Japan Inc. faces choppy seas
junko.yoshida   2/9/2012 3:23:23 PM
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I think many of us feel that this JVs won't work unless there is a strong leadership to shepherd the project. But if we are to go one level deeper, and pick things apart -- in terms of what Panasonic can offer; what Fujitsu has; and what Renesas can bring to the table, what do you see that you like? Are there any specific technologies, products and IPs does any of you want...or "must have"?

Steve Szirom (InsideChips)
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re: Japan Inc. faces choppy seas
Steve Szirom (InsideChips)   2/9/2012 4:10:42 PM
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Intellectually and strategically, it makes sense for Japan to combine Renessas, Panasonic and Fujitsu chip manufacturing into one entity. After all, it is difficult for individual companies (except Intel) to keep up with fab innovations due to costs. Organizationally, it seems it will be difficult...perhaps that is why they brought in Global Foundries into the deal. At best, it will take time to merge these manufacturing units effectively. I think this will make Japan IC chips more of a captive market within its own systems divisions. Steve Szirom, InsideChips.com.

junko.yoshida
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re: Japan Inc. faces choppy seas
junko.yoshida   2/9/2012 6:13:25 PM
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If it pans out that way (making Japan Inc chips more of a captive market), it's too bad. Because that's exactly what they are doing and it won't fix anything.

DMcCunney
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re: Japan Inc. faces choppy seas
DMcCunney   2/10/2012 8:18:43 PM
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We hope not. Making Japan IC chips a captive market within it's systems division is essentially what they have now, and that market simply isn't big enough. The new entity needs to create products it can sell to the *world* market to be viable.

Bert22306
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re: Japan Inc. faces choppy seas
Bert22306   2/10/2012 10:35:27 PM
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I'm not so attuned to this business side of the industry, but nothing about any of these plans for the future seems strange to me. In the global playing field, when (for example) the different fabs have a hard time surviving as separate entities, the natural reaction is to consolidate. As a first step. The next step might be to do what the US did, and use increasingly fabs from overseas. As to companies like Sony, that's a different discussion. It seems to me that Sony just didn't jump on the digital bandwagon fast enough. But there's nothing unusual about that either. Sony had the Walkman, for instance, which in hindsight could have been morphed into a digital player like the iPod. Of course, the iPod has also had its day in the sun, and for now, it is the iPhone and iPad that make everyone giddy. But these are all cyclic things. The more trendy, the shorter lived. You can bet on it. And this holds most especially for personal handheld gadgets. Who wants to be seen with yesterday's fashion accessory? Come now. No one should make the mistake of assuming that today's fashionable gadgets will last a day longer than yesterday's, right? I see a Japan Inc. that is going through the same transitions as US companies, maybe delayed by a few years. And yes, it's certainly true, the design-by-committee prevalent in Japan is not always a good thing.

_hm
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re: Japan Inc. faces choppy seas
_hm   2/11/2012 2:12:16 AM
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Aggressive marketing may be another area. If semiconductor business of this merger closely work with Arrow, Avnet or other distributor, they may get very good market share and user can have easy access to this chips.

PV-Geek
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re: Japan Inc. faces choppy seas
PV-Geek   2/11/2012 10:09:49 PM
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Ultimately, it boils down to a cost issue. The cost of developing new processes, building and tooling new fabs, and what you can charge for the wafers you produce. Japan is an expensive place to do business and it is difficult to attract external business when competing with the likes of TSMC. It wouldn't surprise me that they consider a wide array of consolidation and/or JV opportunities to try and improve competitiveness.

timemerchant
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re: Japan Inc. faces choppy seas
timemerchant   2/12/2012 9:51:34 AM
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Sony went south under the leadership of a westerner. I never worked in any consensus companies, but corporates in the West have leaders who think they have a direct connection to God and any suggestions that are not in line are seen as dissenting. How is HP doing with their CEOs? Think about the losses to shareholders and employers there. In fact, strong US leaders have been responsible for the collapse of Enron and a host of others.

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