	japan to ask chip makers to slash output further the ministry of international  and industry will ask japanese computer microchip makers to further slash output in the second quarter in an effort to save its semiconductor pact with the united states miti officials said the united states has accused japan of reneging on the semiconductor pact by failing to stop the flow of cut price japanese chips to asian markets washington has threatened to take retaliatory action after april the pact agreed last year calls on japan to stop selling cut price chips in world markets and to increase its imports of american chips to reduce some of its huge  surplus miti anxious to salvage the bilateral agreement has been pressing chip makers to limit production in the hope that will boost domestic chip prices and reduce the incentive to export last month the ministry asked japanese chip makers to reduce first quarter output by pct to meet that request they had to slash production by pct over the final six weeks of the first quarter if that reduced production level were maintained through to the end of june second quarter output would come in pct below that of the first three months of the year miti officials who declined to be identified said the ministry has not yet decided on the extent of the second quarter cutback one said that japanese chip makers are losing ground in asia to south korean and u s competition just as markets there are picking up miti has been criticized privately by some japanese semiconductor makers for what they see as heavy handed attempts to ensure the success of the japan u s chip pact reuter 
