U.s.-Japan Semiconductor Agreement Wiki
In 1986, following the insistence of the United States, Japan agreed to limit its exports of semiconductors, in particular the “Dynamic Random Access Memory” (DRAM) chips, to America. These chips are used in high-tech consumer electronics such as computers and video cassette recorders. The agreement expires on July 1, so the Bush administration must quickly decide whether to renew it or not. This would make Washington a hypocrite in its free trade efforts to open markets abroad to American products. Finally, the 1986 chip agreement limits trade, supposedly to help certain U.S. segments of the semiconductor industry. The agreement has hurt U.S. computer manufacturers, who pay higher prices for computer chips. This makes U.S. computer manufacturers less competitive and drives up computer prices for all Americans.
In the three decades since World War II, America has been the leader in commercial development and semiconductor production. Semiconductors, which include early vacuum tubes, transistors and current microchips, are important components in most electronic products. The main semiconductors of today are memory and logic chips. Memory chips record information obtained by mechanical calculation; Logic chips make actual calculations that generate information. These chips are divided into categories based on memory quantity and computational capacity. For example, a 256K chip can hold 256,000 bytes – or units — of information, while a 64K chip can hold only 64,000 bytes of information. A 1 Meg chip contains 1,000,000 bytes of information, while a 4 Meg chip contains 4,000,000 bytes. These chips are used in devices, cars, calculators, industrial installations and machines, PCs, video games and other products. In the Potsdam Declaration of 1945, it was stated that Japan would abandon all its armed forces and that the Japanese army would be under the control of the Commander-in-Chief of Allied Powers (SCAP). In theory, the economy would be left to the administration of the Japanese government. In practice, however, the economy has been largely influenced by the occupation policy of the allied powers.  Originally, the main objective of the United States for Japan after the war was the demilitarization of the Japanese economy.
In the early post-war Japan period, private foreign trade had been banned by the SCAP and all trade was state-run. There were restrictions on the production of heavy industries such as steel, aluminum and copper; Japanese shipbuilding, machinery and chemical industries. Imports were only allowed if they were deemed essential to the supply of the Japanese economy. However, SCAP`s policy towards Japanese industry would be quickly rescinded due to Cold War policy. On August 15, 1947, the U.S. government announced a policy easing trade restrictions in Japan; Reopening of private exports. Trade was still highly regulated; given that a foreign buyer would have to submit a sales and sale contract and that the Japanese exporter would also have to file an application with the Board of Trade, which would then be forwarded to SCAP for final approval.  The evolution of this situation, samsung being both supplier and competitor in a period of consolidation for the mobile phone and semiconductor industry, depends on the adaptation of the strategy.
Innovations in HF, battery and display technology will be in high demand. Software capacity is already becoming much more important. If Chinese companies improve their SoC skills, foundry activities can change dramatically – and the centre of influence could change again. To avoid such a situation, the Bush administration may well do to order the Commerce Department or the Federal Trade Commission to investigate the negative effects of the semiconductor agreement on U.S. computer manufacturers. More detailed data may well be important ammunition in the fight against