The following story appeared in the April 30, 1997 edition of The Daily Yomiuri.


Working together: A semiconductor success story

By TOM DIEDERICH

While they might not see eye-to-eye on all aspects of their semiconductor agreement, Japan and the United States both agree on one crucial point--its success.

On Aug. 2, both countries announced measures replacing a 1991 chip accord. The new three-year pact consists of an industry-to-industry agreement, a continuation of user-supplier activities and a mechanism for regular government reviews. It also created the Semiconductor Council to help semiconductor firms resolve trade issues without government intervention. The council now includes South Korea and the European Union.

At the council's first meeting earlier this month in Hawaii, some of the world's largest chip makers called for an end to trade barriers such as tariffs, according to Jeff Weir, communications director of the Semiconductor Industry Association, which represents U.S. chip makers.

"Because of the semiconductor agreements, we've gotten past a lot of hurdles in the Japanese market," said Roger Mathus, executive director of the SIA's Japan office. "It has been very successful in opening the market here and has led to the good relations we enjoy today."

The organization that represents Japan's chip producers agrees--to a certain extent. "I also think the U.S.-Japan semiconductor arrangement is successful, but my view differs (from the U.S. side)," said Tamotsu Harada, a spokesman for the Electronic Industries Association of Japan. "They say the U.S.-Japan semiconductor arrangement opened the Japanese market. But we think the Japanese semiconductor market was already completely open."

Back to The Diederich Journal, Spring 1997.