U.S. chip makers are wary of Japan's proposals.

The Semiconductor Industry Assn. said it will send letters to members of the Cabinet's Economic Policy Council urging them to impose sanctions against the Japanese for failure to implement last year's chip trade agreement. An SIA official said the group "did not request and does not condone" Japan's latest plan to exert more control on the export of computer chips from the country and to impose production quotas. Such measures are designed to ward off threatened sanctions but in the long run could extend the damage already done to the U.S. chip industry, the official said.

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