Japan-Taiwan cooperation in the area of economic security : strengthening semiconductor supply chains

Abstract

Since the Kishida administration took office last autumn, Japan has been debating economic security, which is the centrepiece of the administration’s policies. On 11 May 2022, the House of Councillors passed the Economic Security Promotion Bill in a plenary session, putting the bill into law. The law has four pillars: strengthening supply chains; prior screening to ensure the security of core infrastructure; promoting public-private cooperation on advanced technology; and not disclosing patents on sensitive technologies that could be used for military purposes. In particular, securing a stable supply of semiconductors and rebuilding Japan’s semiconductor industry are recognised as urgent tasks for the Japanese government. One of the measures being considered to address these issues is industrial cooperation with Taiwan. Before the bill was passed, in December 2021 lawmakers from the ruling parties in Japan and Taiwan agreed to bolster cooperation in the field of economic security with an emphasis on supply chain resilience for semiconductors and other crucial goods.