In the very early 1980's Fender started getting versions of all their famous models made in Japan under the 'Squier' name: I was working in a musical instrument shop at the time & I thought they they were better quality than the American versions. They were also cheaper. I had a Squier Telecaster: lovely guitar.
My general experience with early/mid '80s Japanese electric guitars is that they
knock the socks off most US-made stuff of the same vintage. The nicest Strat I've ever owned, or played for that matter, is a first-year (1982) Fender Japan "62 reissue" model. White, now faded to a light parchment, with a mint green pickguard. Sold my "real" Strat after getting it. Playing it is like wearing a soft & comfy form-fitting shirt. I have a black '83 Squier Tele too. It's a different flavor of Tele than my namesake one but just as well made and capable.
Fender's factory in Ensenada does very good work too. Fender hampers overall quality by using cheaper hardware and electronics on their Mexican-made models (which is to say, they're mostly but not entirely made in Mexico) but the Mexican work holds its own.
-Dave-
