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Confronting the Japanese Challenge: The Revival of Manufacturing at Intel

Published online by Cambridge University Press:  24 July 2019

Christophe Lécuyer
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Abstract

Like many other American corporations, Intel was outcompeted in manufacturing by Japanese firms in the late 1970s and the first half of the 1980s. By 1985, it became clear that the corporation's weakness in production endangered its long-term survival. Responding to the Japanese challenge, Intel's upper management instigated a fundamental reform of manufacturing. At their behest, production engineers and managers adopted Japanese manufacturing technologies and operating procedures. They put microchip fabrication on a scientific footing. They developed new ways of transferring processes from development to production and standardized the firm's factories. This major transformation enabled Intel to reach manufacturing parity with Japanese chipmakers by the early 1990s.

Keywords

IntelsemiconductormanufacturingJapanese competitionSilicon Valley
Type
Research Article
Information
Business History Review , Volume 93 , Issue 2 , Summer 2019 , pp. 349 - 373
Copyright
Copyright © The President and Fellows of Harvard College 2019 

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Footnotes

The author would like to thank David Hodges, Patrick Fridenson, and three anonymous referees for their insightful comments on previous versions of this article. His thanks also go to the Science History Institute for its support for this project.

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