U.S., Japan to Establish Working Group to Determine Division of Tasks
The Nikkei reports that the two sides will set up a working group to determine how to divide tasks such as research and development and production between the U.S. and Japan, and that they hope to agree on the project when Japanese Prime Minister Yoshihide Suga and U.S. President Joe Biden meet in Washington on April 16.
The working group will include officials from Japan’s National Security Agency and Ministry of Economy, Trade and Industry, as well as the U.S. National Security Council and Department of Commerce. Both sides are considering the participation of sub-ministerial figures. First, the working group will identify the risks posed by the current supply networks of the two countries.
Biden and Kan are expected to confirm the importance of establishing a decentralized supply network. They will work to create a system whose production is not dependent on areas of high geopolitical risk such as Taiwan and China, which is in deepening conflict with the United States.
Both Japan and the United States are struggling to address the global semiconductor shortage. The Biden administration has decided to ask Congress to provide $50 billion in subsidies to boost U.S. semiconductor production.
Japan has an advantage in the field of semiconductor manufacturing equipment and materials. The two sides will consider cooperation in areas such as establishing joint research bases in Japan to develop new technologies.
Major chipmaker TSMC has decided to build a state-of-the-art semiconductor plant in the U.S. state of Arizona, and has also announced plans to establish a development base in Tsukuba, Ibaraki prefecture, Japan.
The U.S. side may also seek cooperation from Japan on export restrictions to China. The U.S. tightened export restrictions on Chinese telecom equipment maker Huawei during the administration of former President Donald Trump (Trump). Unlike the U.S., Japan does not currently have restrictions on exports to China.
After automakers scaled back semiconductor orders in the second half of 2020 due to reduced demand from the Communist China virus (coronavirus) pandemic, the automotive market needed to be tougher than expected, but semiconductor makers were already busy responding to strong demand for laptops and smartphones due to remote work, leading to a shortage of semiconductor components.
Japan and the United States are wary of concentrating their semiconductor production bases in mainland China. According to the Boston Consulting Group, the U.S. share of semiconductor production has fallen from 37 percent in 1990 to 12 percent in 2020. China, which invests heavily in subsidies in this field, is expected to increase its market share from 15 percent in 2020 to 24 percent in 2030, and will become the world’s largest semiconductor production base.
Kan to visit U.S., China issue to be key topic
Kan will meet with President Joe Biden in Washington on April 16, and he will be the first foreign leader Biden has met since taking office. Bloomberg said the China issue will be high on the agenda of the meeting.
Announcing Kan’s visit to the U.S. on Friday, Chief Cabinet Secretary Katsuharu Kato said the meeting in Washington showed the importance the U.S. attaches to relations with Japan and that “the U.S. and Japan share the fundamental values of freedom, human rights and the rule of law.”
The report said the Biden administration is trying to put pressure on the Chinese Communist Party in areas ranging from trade and the promotion of the Communist virus vaccine, and that the U.S. summit with Japan, Asia’s strongest ally, underscores the Biden administration’s focus on strengthening ties with partners in the region.
Japanese Prime Minister Yoshihide Suga has come under pressure from lawmakers from his party to join other leading democracies in imposing sanctions on the Chinese Communist Party over human rights abuses against the Uighurs in Xinjiang.
The United States, Canada, the European Union and the United Kingdom have all imposed sanctions, prompting the urge for Japan to follow suit. While Japan has expressed concern about the situation in Xinjiang, it still lacks the legal framework to impose sanctions.
Recent Comments