U.S. Asks Japan for New Chip Talks : Technology: The aim is to work out a semiconductor trade agreement to replace the controversial one that expires in July.

The United States has asked Japan to begin talks on a new semiconductor agreement to replace a controversial pact that expires in July, Japanese officials say.

According to a Ministry of International Trade and Industry official, U.S. trade officials said Friday that American semiconductor and computer industry groups had reached a consensus on the need for a continued arrangement to improve U.S. access to the Japanese semiconductor market and monitor prices to protect against dumping. The official, who requested anonymity, said the United States called for negotiations to start on the new framework as soon as possible.

The discussions are likely to focus on whether the pact should contain a specific target for foreign market share in Japan.

In a controversial “side letter” to the current agreement, the Japanese government said it would work to achieve 20% foreign market share by the expiration of the pact.

U.S. government and industry officials say the figure was a commitment, while Japan maintains that it was only a goal.

The agreement also called for an end to dumping--or selling semiconductors at less than fair market price--in the United States.

Last fall, U.S. semiconductor and computer industry associations asked for the 20% level to be stated as a clear commitment in a new pact because the figure had served as a valuable tool in achieving increased market share.

After increasing steadily for a year and a half, the foreign semiconductor share slipped 0.3 points to 13.1% in the third quarter of 1990.

On Friday, Japanese negotiators reiterated their position that the 20% figure was not a target, the Japanese official said.

“In the previous semiconductor agreement there is a misunderstanding that the arrangement guarantees a certain market share,” he quoted the Japanese side as saying. “We believe this problem is a very difficult issue.”

He said Japan pledged to continue its efforts to expand the share of foreign semiconductors regardless of whether a new agreement is reached but said it would be willing to enter discussions on a new framework.

In April, 1987, the United States imposed $300 million in penalty tariffs on Japan. The United States said Japan allegedly violated the semiconductor agreement by dumping semiconductor chips in the United States and reneging on its pledge to improve access to Japan’s market.

Two months later, the U.S. government reduced the penalties by $135 million after ruling that Japanese makers had stopped dumping.