The Japanese believe that the decline in 256K DRAM prices was due to the delay in the appearance of new personal computers which could use the chips. Many users expected the prices fo 256K DRAMs to fall under 500 yen by the end of the year. Due to the weak market Japanese makers have announced plans to greatly decrease capital spending this year. The weakening market has made capital spending less efficient. It is interesting to note that the Japanese use increases in sales in measuring efficiency.
Westerners use profits.
Of course that further exacerbates the trade deficit. Toshiba by Spring 1985 had shipped samples for free testing. By the Autumn 1985 this will be changed to commercial shipments. By the Spring of 1986 it will be mass producing the chips at a rate of 100,000 per month. It is the first company in the world to achieve this and has decided to grant a license on the technology to Siemens the German electronics maker.