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| Japan proposes US purchase of semiconductor products |
| Tokio, 29.05.2025 |
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| Japan has proposed buying up to 1 trillion yen (6.11 billion euros) worth of American semiconductor products during ongoing trade talks with the United States. TASR reports this based on reports from Reuters and Bloomberg.
The move will help address the large US trade deficit with Japan, which amounts to 10 trillion JPY. Tokyo's chief negotiator Ryosei Akazawa will arrive in the US on May 30, 2025, for the fourth round of talks. The US-Japan trade imbalance has persisted for decades, often leading to protectionist measures, including tariffs.
The administration of President Bill Clinton (1993-2001) prioritized opening up Japanese markets, concluding more trade agreements with Japan than any previous administration. This helped increase US exports to Japan in the targeted sectors by more than 85% during that period.
The current focus on semiconductors represents an evolution of an approach that is shifting toward high-tech components rather than consumer goods, but uses the same mechanism of government-sponsored purchases to address trade imbalances.
Japan’s proposal to subsidize domestic companies when they buy chips from the U.S. echoes past agreements, but now targets the strategically critical semiconductor industry. The proposal reflects Japan’s dual strategy of revitalizing its domestic semiconductor industry while strengthening its alliances with the U.S. at a time of rising geopolitical tensions.
Japan’s share of the semiconductor market has fallen dramatically from 50.3% in 1988 to around 10% today. The Japanese government has allocated significant resources and plans to invest around $25.7 billion (€22.63 billion) in semiconductors to rebuild domestic capacity.
At the same time, Japan is pursuing “friendshoring” with trusted allies such as the U.S. It offers financial support to companies willing to shift production and purchasing to allied countries to reduce dependence on geopolitical rivals.
The proposed chip purchase is in line with Japan’s strategy of diversifying strategic risks through technology partnerships with the US while continuing to develop domestic manufacturing capabilities.odkaz na stránku
(1 EUR = 163.72 JPY; 1 EUR = 1.1356 USD) |
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