Nikkei: The US and Japan shake hands with each other

Washington and Tokyo will cooperate to provide important parts for chip production, reaching an agreement during the meeting between the two leaders of the US – Japan upcoming, Nikkei magazine reported.

Industry “commanders” in the US have voiced the warning of serious consequences caused by the global shortage of chips. Photo: AFP

Japan’s Prime Minister Yoshihide Suga will become the first foreign leader to visit the US since President Joe Biden took office in January, Nikkei magazine quoted the Chief of the Cabinet Office. The leader was originally scheduled to take place on April 9, but has been delayed until April 16.

At the recent regular press conference, White House spokeswoman Jen Psaki confirmed the visit of the Prime Minister of Japan. Ms. Jen Psaki affirmed the visit showed “we value our bilateral relationship with Japan, as well as friendship and partnership with the people of Japan”.

The White House did not immediately comment on the news that the US-Japan cooperation in chip manufacturing that Nikkei posted, and the Embassy of Japan (in the US – BTV) said, no decision was fixed on the outcome of the meeting between Prime Minister Suga and President Biden.

Japan’s Prime Minister’s visit to the United States comes amid a global shortage of semiconductors, forcing many US and other carmakers to cut production. This issue has become a concern for policymakers and those concerned about the economic and security risks posed by chip “thirst”.

US, South Korean, and Japanese officials are expected to discuss the chip shortage at a meeting on April 2, a senior US administration official said. “To be fair, the three countries all hold the keys to the future of the semiconductor industry and we will seek to assert the importance of this,” he told reporters. secure these sensitive supply chains. “

White House aides will meet with chipmakers and carmakers on April 12 to discuss the resilience of the US supply chain, Nikkei sources said. The meeting took place in the context that the US is about to have a large-scale policy adjustment on this issue.

As for Reuters, Prime Minister Suga is expected to leave for the US on April 15 and then to leave Washington on April 17. Details of Prime Minister Suga’s US visit, also his second overseas trip as prime minister, are still under discussion.

Earlier, in February, President Biden signed an administrative decree requiring a 100-day assessment of flagship products, including semiconductors and electric vehicle batteries, to be carried out. is a long-term and more in-depth assessment of six key areas of the US economy. This decree will focus on solving the global “thirst” for chips that are seriously affecting many industries / sectors, from medical devices to electric vehicles.

The move by the Biden administration follows calls from bipartisan members in Congress and warnings from industry commanders about the serious consequences of a global chip shortage.

Semiconductors, often called chips, are used to make electronic devices, including: phones, electric vehicles, and even some medical devices. Given the current situation, Senate Majority Leader Chuck Schumer said: “Semiconductor production is a dangerous weak spot in the economy. America and national security “.

The global shortage of semiconductors has seriously affected the operations of many US businesses. Earlier this month, Ford said cutting supplies from suppliers could cause the automaker to lose 20% of its expected output in the first quarter of 2021.

In a letter to President Biden in February, some industry associations petitioned the US government to encourage the establishment of new semiconductor manufacturing plants in the country to compete effectively with countries that are investing. manufacture of semiconductors.

Washington began laying the foundations for technology supply chains last fall, under President Donald Trump. At that time, the Trump administration called for valuable resource-rich and technologically strong economies such as Taiwan, Japan, and Australia to join hands to tackle technology supply chains from China amid tensions. America – China is still smoldering.