China should not repeat the same mistake that the Japanese did.By signing Plaza accord Japan unwittingly condemn their semiconductor industry to death by forcing industry to buy american semi. Here is a good article revisiting plaza accord and compare it to present dispute between China and US. Hard as it is China should not give up supporting the semiconductor industry by agreeing for numerical import target
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With regards to Japan in the 1980s there are several differences. One, like said in the article, Japan was reaching its peak economic performance and went down after converging because of an ageing population. I have examined the numbers of Japan's economy several times and, to be honest, their economy to me seems to be more constrained by their need for energy imports than anything else. Japan also went down the path of getting into memory products and then lost that same business to the South Koreans. But they never went much further up the semiconductor market than that. For several reasons. I think one of the reasons is they have a much smaller software market. No one else speaks their language and it is really difficult to convert software in their language to other languages. That is why, in my opinion, you saw their success mainly in the console market. Most computer games require little in the way of text translation and those which did, like RPGs, initially had much more difficulty entering the Western markets because of that. They did have efforts in the personal computer sector, like MSX, but they were failures.
The USA clearly kneecapped the Japanese supercomputer industry though. Their lawsuits against NEC in the US are legendary and were only stopped when Cray became an importer of NEC supercomputer hardware. Then there are the issues with patents. At one time Japanese vendors produced Intel X86 clones for example but they never went far into it because of patents. In many ways China has the same issues. The main difference is China has a much larger population which in itself is larger than the entire North America, Western Europe, and Japan back then if you think about it. So there is no reason why China can't have its own market. Thing is, today India is also part of the global software market. So China needs to find a way to still be globally competitive.
I think Japanese computer chip development basically peaked around the time the Sega Saturn was developed. That console used basically mostly Japanese developed components including the CPU. Ever since then though Japanese consoles increasingly used US chip designs and that, I think, is quite sad. The main reason was, I think, because of the lag between leading edge processor chip factories in Japan and the US. Added to a much smaller native CPU market it meant they did not retain CPU designers since they could not afford them as processor designs became more complex.
Still, I think it is kind of sad that all modern Japanese consoles use basically US designed SoCs.
One thing Japan had in the 1980s which China did not have was a robust semiconductor tools industry. They had two major tools vendors back then. That's basically how they could get as far in the memory business as they did I think.