The 1980s – global expansion and the rise of strategic pricing

Recap

Semiconductors transitioned from high-cost, government-funded projects in the 1950s to the mainstream adoption of integrated circuits in the 1960s. The 1970s accelerated this momentum, driven by the rise of personal computing, memory chips, and telecommunications. Global competition intensified as Japan emerged as a major player, challenging U.S. dominance in semiconductor manufacturing. Pricing became more complex due to macroeconomic events like inflation, trade policies, and energy crises. While manufacturing costs declined with better yields and economies of scale, the decade also saw early trade disputes and the beginning of semiconductor price wars.

The 1980s formed a remarkable bridge between the…