Japan denies chip pact has failed: says U.S. companies need to try harder

Article Abstract:

Japan's electronics industry denies charges made by the US Semiconductor Association that an integrated-circuit (IC) trade pact made between the US and Japan has almost failed. US semiconductor companies have failed to gain a greater percentage of the IC market in Japan; these firms claim that Japanese companies are not complying with the guidelines of the pact. The Electronic Industries Association of Japan argues that US companies have not tried hard enough to generate greater market share in Japan and that the recession has hurt Japan's ability to purchase greater proportions of US chips. While the Japanese deny any wrongdoing, they do see the issue as a potential source of political strain. The US has been unable to gather more than 14.3 percent of the Japanese IC market; Japan, using a different formula, estimates this figure at 16.2 percent.

Japan, International relations, Public opinion, Semiconductor Industry Association, Market Analysis, Failure, Electronic Industries Association of Japan

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Costs may be too high for all-American chips

Article Abstract:

Many large semiconductor companies are forging international alliances to develop and manufacture new chips. The United States and Japan signed a trade agreement of the mid-1980s that was designed to help the American semiconductor industry. But the huge capital costs of developing new generations of chips has led the rise of giant international alliances. For example, a Siemens AG-IBM alliance that has already announced a working prototype of a 64M-bit memory chip. Texas Instruments and Hitachi Ltd. have also agreed to work together, as have Motorola and Toshiba and AT&T and N.E.C. The design and manufacture of a new chip now costs around a half billion dollars.

Electronic computers, Office machines, not elsewhere classified, Product development, Finance, International Business Machines Corp., IBM, Siemens AG, Cost, Industry Analysis, Production, Semiconductor Industry

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