Samsung had set up an impressive range of semiconductor technology for mobile devices: DRAM and Flash, ARM processor cores and ASICs, as well as miniaturized LCD panel capabilities derived from greater efforts for TVs and monitors – all from its own fab equipment. In what has become samsung`s modus operandi, they applied their portfolio and expertise to wrap up two emerging segmental mobile apps: the music player and the smartphone. Townsend Harris (1804-78) was the first American diplomat from 1856 to 1861 after Perry`s departure.  He gained the trust of Japanese leaders who sought his advice on how to treat Europeans. Harris obtained in 1858 the privilege of the Americans to reside in four “open ports” of Japan and to travel in designated areas. It banned the opium trade and set tariffs. He was the first foreigner to secure an expanded trade deal; it was fairer than the unequal treaties that were soon obtained by Britain, France and Russia.   With some VLSI knowledge in hand, Samsung installed an “outpost” in Santa Clara, California, in early 1983. Its main focus was competitive research, finding a licensor for DRAM technology, and it would serve as a recruitment and training center to add semiconductor talent from the United States. To avoid such a situation, the Bush administration may well order the Department of Commerce or the Federal Trade Commission to investigate the negative effects of the semiconductor cartel on U.S.
computer manufacturers. More detailed data could provide important ammunition in the fight for free trade and protectionism, preventing counterproductive economic policies such as the semiconductor deal in the future. Instead of planning for government or special almsgouts, the best way to promote a competitive U.S. semiconductor industry would be to create a macroeconomic environment in which it would be easier for U.S. companies to invest capital in research and development. Such an environment would result from changes in tax policy and anti-cartel rules. The National Advisory Committee on Semiconductors, created by Congress in 1989 to develop a strategy for the sector, says increased investment in the sector would be spurred by reducing capital gains taxes, changing device depreciation schedules, and increasing the U.S. savings rate through tax incentives to save money. “Tax Cuts Called Cure for Ill Chip Industry,” Washington Times, September 10, 1990, p. D1.) The main area of non-cooperation with the United States in the 1980s was Japanese opposition to repeated U.S.
efforts to get Japan to further open its market to foreign goods and change other economic practices deemed detrimental to U.S. economic interests. A common pattern was followed. The Japanese government has been sensitive to political pressure from large national electoral groups, which would be harmed by greater openness. Generally speaking, these districts had two types of constituencies: those representing inefficient or “declining” producers, producers and distributors who could not compete if faced full foreign competition; and emerging industries that the Japanese government wanted to protect from foreign competition until they were effectively competing in global markets. . . .