The United States and Japan have joined forces to establish new subsidy rules aimed at strengthening their semiconductor industries and countering China's growing influence in the global chip market.
This partnership stresses the increasing efforts by major economies to secure vital supply chains and maintain technological competitiveness.
New Subsidy Rules for Semiconductors and More to Counter China's Influence
The agreement, revealed by sources to Nikkei Asia, targets strategic goods such as semiconductors, storage batteries, and permanent magnets. Both countries are set to establish common criteria for subsidies, including considerations like decarbonization goals and ensuring stable supply chains for critical components.
The collaboration extends beyond the bilateral ties, with plans to create international rules through coordination with like-minded countries, including those in Europe. The aim is to strengthen economic security and prevent competitive protectionist policies against China.
Nikkei Asia reports that Prime Minister Fumio Kishida and President Joe Biden are poised to issue a joint statement on the subsidy partnership during their upcoming meeting in Washington on April 10.
Additionally, a ministerial dialogue will be initiated, with the participation of key figures such as Japan's Minister of Economy, Trade and Industry Ken Saito, and U.S. Secretary of Commerce Gina Raimondo, to develop the rules further.
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(Photo : Dan Williams from Pixabay)
US and Japan establish new subsidy rules to bolster semiconductor industries and counter China's influence, emphasizing global efforts to secure supply chains and maintain competitiveness.
US Push Allies to Block China from Chipmaking Tools Servicing
Meanwhile, Reuters reports that the United States is urging its allies to halt domestic companies from servicing certain chipmaking tools for Chinese customers.
This move forms part of a broader effort to curb China's advancements in chip manufacturing, which are seen as potentially bolstering its military capabilities.
Discussions are underway to determine which components should not be serviced for Chinese firms, to align allied nations' policies to mirror U.S. restrictions. Previously, the Biden administration imposed new restrictions on shipments of American-made chipmaking tools to advanced Chinese chip factories, with Japan and the Netherlands following suit with their own controls.
Japan Greenlights $3.9 Billion Aid Package for Rapidus
In a separate development, Japan has approved a substantial aid package worth $3.9 billion for chip venture Rapidus, as reported by Latest News.
SCMP reports that this investment aims to boost Japan's semiconductor manufacturing capabilities and enhance its competitiveness against industry leaders like Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics.
The additional funding will support Rapidus in acquiring chipmaking equipment and developing advanced back-end chipmaking processes. Collaborating with researchers at IBM and leveraging internal expertise in nanotechnology and materials, Rapidus seeks to narrow the technological gap with its rivals.
The investment in Rapidus is part of Japan's broader strategy to regain its chipmaking prowess, with significant financial support earmarked for the sector. Economy Minister Ken Saito emphasized the critical role of next-generation semiconductors in dictating Japan's industrial future, highlighting the importance of chips for digitalization, decarbonization, and economic security.
By forging closer ties and implementing strategic measures, the United States and Japan aim to fortify their positions in the global semiconductor landscape.
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