Japan is taking significant steps to revive its domestic semiconductor industry in response to global trade volatility caused by conflicts, tariffs, and the pandemic. Once a leader in high-performance electronics, Japan lost its competitive edge to countries like South Korea in the 1980s. The COVID-19 pandemic highlighted the dangers of relying on imports for critical technologies, driving the government to prioritize economic security and the independent production of semiconductors to support local manufacturers. This initiative is further fueled by the recent focus on AI technologies and global trade policies.
"The sudden shortage of chips in Japan, Europe and the US made the Japanese government realize that if domestic industry was not to go into decline, then we would need our own dedicated supplies."
"The biggest single factor for the government is ensuring economic security... it is critical that Japan is able to maintain an independent capability in semiconductors in order to meet the needs of its own manufacturers."
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