The European Union and Japan have reached a cooperation agreement whose main purpose is reinforcement of the chip supply chain globallyin addition to offering support to Japanese companies dedicated to the manufacture of semiconductors that want to extend their activity to the territory of the EU.
According to Reuters, the deal was announced after the EU Commissioner Thierry Breton have met with him Japan’s Minister of Digital Affairs Taro Kono; with the Minister of Internal Affairs and Communications, Takeaki Matsumoto; and with him Minister of Economy and Trade, Fusae Ota.
Representatives of the EU and Japan, meeting at the first EU-Japan ministerial summit on this digital collaboration, have also agreed to extend their cooperation to submarine cable connectivity, supply chain research and resilience, the regulation of Artificial Intelligence and cybersecurity, as well as research in quantum and high-performance computing. In addition, they will collaborate in the development of other areas of the digital economy, without specifying which ones.
Breton, who has highlighted the importance of securing the semiconductor supply chain, has also stressed that the European Union’s policy of reducing its dependence on technology manufactured in China, as is the case with chips, is part of its reduction strategy of risks.
It is not the only Asian country with which Thierry Breton has met in recent days to show the EU’s willingness to collaborate in areas similar to those it has agreed to collaborate with Japan. Only a few days ago he met with several ministers from the Republic of South Korea, and it is likely that he intends to meet with other member countries of the G20, which includes the EU as well as Japan and South Korea; who have similar interests.
The chip industry is seen as strategic in the struggle between various Western countries and regions against China, led by the United States. Meanwhile, the EU and Japan have been taking steps to strengthen the semiconductor design and manufacturing sector in their respective territories for several months.
In April, the European Council and the European Parliament agreed to invest $3.6 billion in funds to develop chipmaking capabilities in their member countries. Furthermore, less than a month ago the EU decided to invest 8.1 billion in chip development and telecommunications technology.
Also in April, the Japanese government said it would invest around $530 million in next-generation chip development and manufacturing projects in the country. Among other projects, it will go towards an agreement with Rapidus, which will lead to chips being manufactured in Japan with 2-nanometer technology by 2025. Apart from this, Japanese semiconductor equipment maker JSR has accepted a $6.4 billion purchase offer from the Japanese government, which will give the state more control over the manufacturing of various components and elements used in circuit and wafer manufacturing.
