According to the Boston Consulting Group, the share of U.S. semiconductor production fell from 37 percent in 1990 to 12 percent in 2020. Reuters file photo
The Nikkei News pointed out on Monday that U.S.-Japan cooperation in the semiconductor field will be strengthened, and the two sides will establish a working group, and both sides are considering appointing someone at the rank of deputy secretary of state to the top position of the group, which is expected to sign a relevant agreement with U.S. President Joe Biden when Japanese Prime Minister Yoshihide Suga visits Washington on the 16th of this month.
The report noted that the U.S. and Japanese governments will work together to ensure the stability of the supply chain of strategic electronic components such as semiconductors. Currently, the U.S. and Japanese governments have begun coordination efforts to prepare for the construction of a stable supply chain for semiconductors and other important components. Relevant departments and agencies will establish working groups and delineate roles in R&D and production.
Currently, discussions between the two sides are directed to confirm the importance of a distributed supply chain. The two sides are exploring the establishment of a system that is not dependent on specific regions, such as Taiwan, where geopolitical risks are high, and mainland China, where antagonism with the United States has deepened.
According to reports, Japanese units participating in the working group include Japan’s National Security Agency and the Ministry of Economy, Trade and Industry, while the U.S. is joined by the White House National Security Council (WHNSC), the Department of Commerce (DOC) and other departments. Both sides are considering appointing someone at the rank of Deputy Secretary of State to the top position of the group.
At the moment, the global semiconductor shortage continues, with both Japan and the U.S. under pressure from a lack of wafers. The Biden administration has decided to ask Congress to provide $50 billion in subsidies to boost semiconductor production. And because Japan has an advantage in the field of semiconductor manufacturing equipment and materials, the two sides will consider cooperation in areas such as establishing a joint R&D base in Japan to develop new technologies.
In addition, the United States may also seek cooperation with Japan in terms of export restrictions on China. During the administration of former President Donald Trump, the U.S. offered blocking orders against a host of electronics companies such as Huawei. Unlike the United States, Japan currently does not impose any restrictions on China’s exports.
The United States and Japan are on high alert for the semiconductor supply chain to move to China. According to the Boston Consulting Group, the share of U.S. semiconductor production has fallen from 37 percent in 1990 to 12 percent in 2020. China, which invests heavily in subsidies in this area, will grow from 20 percent in 2020 to the world’s largest by 2030.
In addition, stabilizing semiconductor supply is another major goal for both countries. Due to the new crown virus rampant last year, the automotive industry is expected to seriously affect demand, so automakers cut semiconductor orders, but the car market rebounded beyond expectations, resulting in the automotive industry semiconductor shortage problems surfaced in the second half of last year. Since March this year, the world has nearly 10 car companies have been due to the lack of chips and repeatedly released production or plant shutdown plans, involving dozens of factories.
However, before the U.S. and Japan want to set up a semiconductor working group, the U.S.-China Semiconductor Association has set up a semiconductor working group.
According to the Beijing Business News, on March 11, after several rounds of discussions and consultations, the semiconductor industry associations of China and the United States announced the joint establishment of the “U.S.-China Semiconductor Industry Technology and Trade Restrictions Working Group”, which will establish a timely communication and information sharing mechanism for the semiconductor industries of China and the United States to exchange policies on export controls, supply chain security, encryption and other technology and trade restrictions.
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