Foreigners Make Gains in Japan Chip Market

Foreign manufacturers held a record 23.2% share of Japan’s lucrative semiconductor market in the third quarter, the U.S. government reported Thursday.

The numbers should help defuse tension between Washington and Tokyo over the matter. A 1991 agreement between the United States and Japan calls for a minimum 20% foreign share of Japan’s market for the tiny computer chips, which are used in products ranging from toasters to automobiles.

The market--which accounts for 34% of world sales of the chips--is expected to be worth almost $30 billion this year, says World Semiconductor Trade Statistics, a U.S.-based research organization.

From July to September, foreign companies accounted for 23.2% of semiconductors sold in Japan, up from 21.9% in the previous quarter, the U.S. government said. The Japanese government, which counts some imports not included in the U.S. figures, said the share was 23.4%, up from 22.5%.

“Not only has the Japanese market become more competitive, but cooperation is replacing confrontation on the question of market access,” said Andrew A. Procassini, president of the San Jose-based Semiconductor Industry Assn.

Earlier this year, Washington called for emergency steps to boost foreign market share in Japan after it fell below 20% for three straight quarters.

Representatives of both sides expressed satisfaction with Thursday’s figures.