Japan, EC Reach Settlement Over Computer Chip Pricing

The European Community Commission and Japan have settled a three-year inquiry into the dumping of Japanese computer chips at unusually low prices in the European market, the commission said Tuesday.

In a statement, the commission said that 11 Japanese companies agreed to set a minimum price for their chips, amounting to the average production cost plus a 9.5% profit margin.

The agreement was a “sufficient guarantee against price competition from Japan,” the commission said.

The companies involved were Fujitsu, Hitachi, Mitsubishi, NEC, NMB, Oki, Texas Instruments Japan, Toshiba, Matsushita, Sanyo and Sharp.

The agreement also applies to new-generation computer chips, which is unprecedented in an anti-dumping accord, although these chips could be sold beneath the minimum price for a “certain period” in the interests of users, the commission said.

In addition, minimum prices will not be imposed on samples, it said.

The accord ends a three-year inquiry into extensive dumping of dynamic random access memory chips, known as DRAMS, in the 12-nation EC.