Kantor Hails Rise in Foreign Share of Computer Chip Sales in Japan

The foreign share of computer chip sales in Japan jumped to a record 26.2% in the July-September period, a development the Clinton administration hailed Thursday while insisting a trade agreement monitoring chip sales must be renewed.

The administration announced that the foreign share of Japan’s semiconductor market advanced by more than 3 percentage points from 22.9% in the second quarter. It surpassed the previous record of 23.7% reached in the fourth quarter of 1994.

“I am highly pleased that foreign companies have achieved yet another record share of Japan’s semiconductor market,” U.S. Trade Representative Mickey Kantor said in a statement.

The United States and Japan are operating under a trade agreement that was first negotiated in 1986 during the Reagan administration and renewed in 1991 by the Bush administration.

The agreement established a number of market-access strategies to boost American sales of computer chips in Japan. It is set to expire July 31, 1996.

The Japanese government, backed by the Japanese electronics industry, is adamantly opposed to renewing the pact, arguing that the level of foreign sales has reached a level where market forces can operate without government interference.

But the Clinton administration insists that for the gains to continue, a new agreement must be negotiated.

“Renewing the arrangement is critical in order to maintain this proven framework for achieving progress,” Kantor said.