(MENAFN- Asia Times) At the G7 Hiroshima Summit in May 2023,
in a statement on economic resilience and economic security that they would strengthen supply chains for critical goods, including semiconductors, through global partnerships.
This commitment reaffirms Japan's efforts – starting in 2021 – to revitalize its domestic semiconductor industry, reduce its dependence on other countries for critical goods and build a resilient supply chain.
Two key elements of Japan's
for 2023 include strengthening domestic manufacturing capability and fostering research and development (R&D) for next-generation semiconductor technology through international collaboration.
This ambitious approach aims to transform Japan's semiconductor industry and demonstrates the government's determination to revive its semiconductor ecosystem.
The Japanese government aims to increase domestic semiconductor manufacturing capacity by providing subsidies to companies engaged in the production of advanced semiconductors.
Given that semiconductors are used in everything from cellphones to defense systems, expanding Japan's domestic capability will be crucial for
reducing the risk
of dependence on unreliable sources of supply as well as the risk of becoming overly reliant on a few countries.
In 2021 and 2022 the government set aside more than 1 trillion yen (close to US$7 billion) for semiconductor manufacturing plants. Without this, Japanese and foreign firms would likely choose more attractive locations to manufacture semiconductors.
In May 2023, top executives of seven foreign semiconductor companies
Prime Minister Fumio Kishida to exchange views on expanding investment in Japan. This step is expected to further secure the semiconductor manufacturing base.
Semiconductors were also designated “specified critical materials” to strengthen the ability of Japanese industry to manufacture legacy semiconductors and produce the required manufacturing equipment and materials.
This resulted in a total budget of 368.6 billion yen (US$2.8 billion). These support measures aim to maintain Japan's presence in the global semiconductor ecosystem and induce additional private-sector investment.
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