The European Community on Monday threw its weight behind Japan’s proposal to replace the controversial US-Japan semiconductor pact with a global government forum on semiconductors. The agreement between Brussels and Tokyo comes ahead of US-Japanese talks this week and next aimed at settling a dispute over the fate of the 1991 bilateral pact in time to meet the July 31 deadline. Washington wants Tokyo to conclude a new transitional two-way pact when the existing deal runs out, Japanese trade officials argue that the bilateral arrangement is no longer needed now that foreign chipmakers have a more than 30% share of Japan’s market. The European Commission agreed a private sector World Semiconductor Council should be established, and that the Global Government Forum should initially include Japan, the US and Europe, and expand later.
