Japan and the EU agreed to step up cooperation on semiconductors a day after China unveiled export restrictions on two metals crucial to some parts of the chip industry, adding to tensions in a global technology trade war.
(Bloomberg) — Japan and the EU agreed to step up cooperation on semiconductors a day after China unveiled export restrictions on two metals crucial to some parts of the chip industry, adding to tensions in a global technology trade war.
The two sides agreed to an “early warning” system on problems in the chip supply chain in a memorandum to be signed by Japanese Trade Minister Yasutoshi Nishimura and Thierry Breton, European commissioner for internal market at a Tuesday meeting in Tokyo.
China’s announcement of new controls on gallium and germanium, which are used in the semiconductor, telecommunications and electric-vehicle industries, is the latest reminder of vulnerabilities in the chip supply chain.
The US, Japan and EU members are among the governments aiming to bring more chip production home to bolster resilience and restrict some related exports to China. They are also working to shore up ties with a broader range of partners.
The pact outlines plans for information-sharing on government subsidies as well as cooperation on research and development of next-generation chips and developing human resources.
Japan agreed in May to deepen cooperation with the US on advanced semiconductor research.
Japan is funneling billions of dollars into subsidizing domestic semiconductor ventures backed by Japanese, US and Taiwan firms, as well as backing a buy-out of JSR, a world leader in manufacturing chipmaking compounds.
–With assistance from Tsuyoshi Inajima, Yuko Takeo and Mayumi Negishi.
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