Japanese brands like Sony, Toshiba, JVC, Sharp, and Canon recognized that a large proportion of the incremental profit of their goods went to companies like Intel rather than to domestic companies. Take a new calculator. While the device might have a 15 percent profit margin, the chips inside the calculator had incremental margins of 80 percent or higher and were hard or impossible to substitute. So, starting in the 1960s, Japanese companies began attempting to produce their own chips.
