Final answer:
Japan dominated low-cost microchip manufacturing due to a highly skilled workforce, advanced robotics, government subsidies, focusing on innovation, and strategic economic relationships both within Asia and with the U.S.
Step-by-step explanation:
Japan came to dominate low-cost microchip manufacturing due to several key factors. One of the most significant reasons is Japan's ability to develop a highly skilled workforce and embrace advanced robotics in their manufacturing processes. This expertise allowed them to ascend the value chain, from producing textiles and cheap goods to complex and high-end technology products. The Japanese government also played a crucial role by subsidizing industries, offering government subsidies for certain sectors, and creating policies that encouraged innovation, investment, and the acquisition of applicable technology. Additionally, they harnessed their strong internal organization and efficient society to help create a successful manufacturing sector.Japan's post-WWII economic revival was greatly aided by U.S. aid and preferential access to the U.S. markets. Their economy shifted from producing inexpensive knock-off products to becoming pioneers in high technology and innovation. This transformation was bolstered by a focus on exports, particularly to the U.S., setting Japan up as an ally in the region against communist China.Finally, Japan's economic strategy included leveraging the economic strength of its neighbors in Asia. This involved seeking opportunities for manufacturing ventures in countries like China to utilize the abundant labor force available there and to establish beneficial trade relationships within the East Asian Community.