As this book goes to press, the newly created semiconductor industries
of East Asia are emerging from an extraordinarily demanding series of
tests. They have been forced to endure the damaging effects of a world
semiconductor industry downturn, which has seen prices and output for
chip products, and in particular for memory chips, drop precipitately in
1996 and 1997. Leading firms in Europe and the US were forced to
withdraw from the memory chips industry as a result of this downturn.
In addition to this, the East Asian semiconductor firms have been
subjected to the trials of the Asian financial crisis of 1997 and 1998,
which saw some of the more indebted firms in the region topple. Each
crisis on its own would have been a severe test for firms newly established
in one of the most fast-moving and competitive industries in the world.
Coming together, they subjected the semiconductor industries in Korea,
Taiwan, Singapore and Malaysia to an unprecedented trial of their
organisational strength. That they have survived at all, let alone come
through this process without major bankruptcies or exits (albeit with
some industry consolidation), is a testament to their sustainability.