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Chip Accord Working

Foreign-IC share in Japan reaches all-time high

By George Leopold, EE Times

Washington -- The foreign-owned share of the Japanese semiconductor market hit an all-time high of 32.6 percent during the first quarter of 1997, the U.S. government reported last week.

The 3.2 percent jump in market share over the previous quarter comes one year after the approval of a new U.S.-Japan semiconductor accord. The Semiconductor Industry Association (SIA), a trade group that represents leading U.S. chip makers, attributed the sharp increase to that year-old trade agreement and to the strong sales of ICs to computer manufacturers.

"The increase in foreign share is a result of vigorous American competitiveness combined with a strong trade agreement on semiconductors between the U.S. and Japan," said George Scalise, president of the SIA.

Japanese consumers are buying more personal computers, according to the SIA, which has given a boost to foreign companies that design microprocessors, microperipherals and memory chips.

The first-quarter figure measuring market share held by foreign-owned semiconductor suppliers for sales into Japan's market exceeds the previous all-time high of 29.6 percent, which was set in the fourth quarter of 1995. Foreign market share in Japan has jumped 6.2 percent since the new trade accord was approved last August, according to government figures.
(c) 1997 CMP Media, Inc

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