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 that was to be signed by Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura and European Commissioner for the Internal Market Thierry Breton at a meeting in Tokyo yesterday.
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.
Photo: Reuters
Beijing says its export controls are in accordance with law and are not targeted at any specific country, Chinese Ministry of Foreign Affairs spokeswoman Mao Ning (毛寧) said yesterday.
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 in May agreed to deepen cooperation with the US on advanced semiconductor research.
Japan is funneling billions of dollars into subsidizing domestic semiconductor ventures backed by Taiwanese, Japanese and US firms, as well as backing a buyout of JSR Corp, a world leader in manufacturing chipmaking compounds.
Nishimura yesterday said that Tokyo would watch how China implements planned export restrictions on germanium and gallium and seek answers on the intent behind the move.
“If any measures are unfair toward Japan in light of international rules such as those under the WTO, we will act accordingly,” Nishimura told reporters at a regular news conference.
Tokyo does not consider China’s curbs as a reaction to Japan shoring up its licensing requirements on chipmaking equipment, he said.
In Taipei, the Ministry of Economic Affairs said the short-term effect of China’s export controls on germanium and gallium would not be significant.
Taiwan is monitoring the effects on global markets of long-term controls, as well as price fluctuations and supply issues, Minister of Economic Affairs Wang Mei-hua (王美花) said yesterday, adding that China exports unrefined products that are refined in countries such as the US and Japan, and Taiwan imports the refined products.
A senior South Korean official also said the short-term effect of China’s export controls would be limited, offset by a government stockpile and alternative supplies.
“We are monitoring the situation in key countries such as the US and Japan, and will make utmost efforts to prepare measures to deal with even unlikely situations,” the South Korean Ministry of Trade, Industry and Energy’s Deputy Minister for the Office of Industrial Policy Joo Young-joon said.
Additional reporting by Reuters
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