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JAPANESE ELECTRONICS INDUSTRY OUTLINES SUCCESS OF SEMICONDUCTOR PACT

JAPANESE ELECTRONICS INDUSTRY OUTLINES SUCCESS OF SEMICONDUCTOR PACT
 WASHINGTON, May 21 /PRNewswire/ -- The Electronic Industry Association of Japan (EIAJ) today renewed its support for the 1991 U.S.-Japan Semiconductor Arrangement, which it said has dramatically improved foreign chipmakers' access to the Japanese market.
 "EIAJ believes that real progress is being made in accomplishing the long-term objectives of the arrangement," the group said in a "Statement on Semiconductors" released today.
 "The steady rise in joint ventures and other cooperative arrangements between U.S. and Japanese chip manufacturers is strong and tangible evidence of success in improving market access," said Iwao Ojima, president of EIAJ.
 Foreign semiconductor producers now account for 16.1 percent of the Japanese market according to one of the formulas contained in the 1991 agreement. Since 1986, Japanese sales of North American producers alone have tripled, rising from $933 million in 1986 to $2.8 billion last year.
 While the recent Japanese recession has made it more difficult for foreign producers to increase market share, the report showed that design-ins and joint relationships, other major criteria of market access, continue to grow rapidly.
 The report cited many major American companies, including AMD, Intel, Motorola, National Semiconductor, and Texas Instruments, who have made significant advances in Japan by aggressively adapting their products to match market demand. They have also established a presence in Japan by setting up design centers and service and sales facilities.
 The report also noted, however, that there remains much room for improvement and that American firms must shoulder considerable responsibility for their failure to obtain a greater share of the Japanese market.
 It voiced concern that some elements of the U.S. industry prefer to promote division by seeking a guaranteed share of the Japanese market for American semiconductors. EIAJ recognizes the U.S. semiconductor industry's desire for foreign market share in Japan to reach 20 percent, however as is clearly written in the 1991 arrangement, that level of foreign market share is not guaranteed.
 "Attempts to guarantee fixed market share for any group of suppliers undermines the competitive market forces that have made the United States and Japan the world's strongest and most dynamic economies," Ojima said. "The 1991 Semiconductor Arrangement is designed to promote market access so that the most innovative and productive companies would be rewarded on merit. It was never intended to divide up the market by assigning sales quotas or market share."
 The report was issued partly in response to a recent report by Semiconductor Industry Association (SIA). Noting the different chip demand structures of both countries, the report found that many American manufacturers are not competitive in many important market segments. The report went on to say that American manufacturers have yet to fully utilize advanced packaging capabilities and otherwise adapt their products to Japanese market demands. Finally, the report noted a slowdown in the establishment of design centers, service and sales facilities in Japan.
 EIAJ remains committed to the goals of the 1991 agreement. EIAJ invites SIA to join in this goal and to refrain from precipitating a crisis that may destroy the very real progress that has been made to date under the arrangement.
 -0- 5/21/92
 /CONTACT: Neal McGarity or Jerry Johnson of Powell-Tate, 202-347-6633, for the Electronic Industry Association of Japan/ CO: Electronic Industry Association of Japan ST: District of Columbia IN: CPR SU:


DS -- DC008 -- 2718 05/21/92 10:32 EDT
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Date:May 21, 1992
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