Confronting the Japanese Challenge: The Revival of Manufacturing at Intel

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.