At HP, however, Anderson didn’t simply take Toshiba and NEC seriously—he tested their chips and found that they were of far better quality than American competitors. None of the three Japanese firms reported failure rates above 0.02 percent during their first one thousand hours of use, he reported. The lowest failure rate of the three American firms was 0.09 percent—which meant four-and-a-half times as many U.S.-made chips were malfunctioning.

