EU and Japan Strengthen Semiconductor Cooperation Amid Global Demand

EU and Japan's plans to monitor the chip supply chain, foster the exchange of researchers and engineers,

The European Union (EU) and Japan are set to enhance their collaboration on semiconductors, focusing on securing the supply chain and bolstering control over this crucial technology. EU industry chief Thierry Breton announced the deepening cooperation, emphasizing the significance of semiconductors for defense, electronics, and automotive sectors. Reuters reported the EU and Japan’s plans to monitor the chip supply chain, foster the exchange of researchers and engineers, and support Japanese semiconductor companies operating within the EU.

Breton, currently in Tokyo engaging in discussions on-chip and artificial intelligence cooperation with the Japanese government and companies, stressed the importance of securing semiconductor supply chains. To revitalize its chip industry and consolidate market share, Japan is providing subsidies and encouraging initiatives such as the acquisition of photoresist maker JSR Corp by a government-backed fund for $6.4 billion. Additionally, Japan supports the chip foundry venture Rapidus, whose executives are scheduled to meet with Breton.

The foundry venture, which aims to produce cutting-edge chips, relies on the support of Belgian research company imec and IBM. Breton expressed his support for this initiative, recognizing its significance in advancing the industry. The EU’s collaboration with Japan aligns with its strategy to reduce dependence on China and mitigate risks associated with the semiconductor market.

During his visit, Breton held discussions with Japan’s Minister for Digital Affairs, Minister of Internal Affairs and Communications, and State Minister for Economy Trade, and Industry. The discussions resulted in a joint statement highlighting cooperation in undersea cable connectivity, semiconductors, cybersecurity, and various other areas of the digital economy. AI emerged as a major topic of discussion, and further talks are scheduled to take place in Brussels in the first half of the following year.

The deepening collaboration between the EU and Japan in the semiconductor sector reflects their commitment to addressing supply chain challenges and strengthening their technological capabilities.

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