March 5, 1987

LEAD: The nation's semiconductor makers agreed today to form a consortium in an effort to revive American manufacturing technology in the production of computer chips. They appealed to the Reagan Administration for financial support.

LEAD: President Reagan today denounced as ''despicable fiction'' published reports that his wife, Nancy, had played a major role in the dismissal of his chief of staff, Donald T. Regan, and was involved in key Government decisions.

LEAD: With Wall Street receiving a psychological lift from the General Motors Corporation's plans for a huge buyback of its own shares, the stock market rallied to record-breaking levels yesterday.

LEAD: The Soviet Union has agreed to the principle of on-site inspection in the proposed removal of medium-range nuclear missiles from Europe, diplomats close to the negotiations here said today.

LEAD: Borough President David N. Dinkins of Manhattan yesterday compared the fatal shooting Saturday by New York City police of a man they say attacked an officer to a summary execution.

LEAD: Representative Jim Wright, the Speaker of the House, told Democrats on the Budget Committee today that he was ready to fight for a tax increase this year to reduce the Federal deficit even though President Reagan was expected to oppose higher taxes.

LEAD: Basic electricity rates of the Consolidated Edison Company will drop by 3.1 percent, or almost $500 million, over the next three years under an agreement announced yesterday by the giant utility and Governor Cuomo.

LEAD: The soaring stock market, which has lifted many stocks to record highs, has not cooled corporate America's love affair with that one sure-fire way to bolster share prices and please investors: the buyback.

LEAD: President Reagan said tonight that his policy toward Iran had ''deteriorated'' into a trade of arms for hostages and that he accepted ''full responsibility'' for the Iran-contra affair, which has thrown a shadow over his Administration for three months.

LEAD: ONCE the interior designer has finished, many clients feel like new parents, proud but apprehensive.

LEAD: It's a long way geographically and culturally from the tiny West Texas oil town of Wink to Dallas.

LEAD: Jonathan Jay Pollard, the former civilian intelligence analyst for the Navy who pleaded guilty to spying for Israel, was sentenced to life in prison today in a highly emotional session in Federal District Court here.