A new report has suggested that Japan is planning on attracting known semiconductor makers, TSMC (Taiwan Semiconductor Manufacturing Company) and Intel. The government is expected to start an investigation to look into future prospects to bring the major chipmakers to their country.
This endeavor is being undertaken by the Ministry of Economy, Trade, and Industry. The move from the Japanese government arrives after the effects of the coronavirus have become more apparent. Recently, many economies, especially in the west, are prioritizing foreign capitalized takeovers to provide a safeguard for local companies. Thus, Japan seeks to do the same by launching a foreign investment attraction project.
To explain in simpler terms, the government aim to bring back Japan based multinational corporations back to its country and then attract foreign investor through these large scale firms. One such example is Canon, which is a known Japanese MNC that deals in imaging and optical products like cameras and more. At the moment, there are rumors that indicate that Canon will be withdrawing from China.
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While various Chinese publications have sought out a response from Canon regarding the report, the company has yet to respond to such claims. Back in April 2020, the Domestic investment promotion project subsidy for supply chain measures was established with 220 Billion Yen (roughly 2 Billion US Dollars). This new budget was established in the wake of the viral outbreak to act as an emergency fund during the economic crisis.
According to the Ministry of Economy, Trade and Industry, the budget will be responsible for rebuilding the domestic supply chains that have since become vulnerable due to COVID-19. In other words, facilitate rehabilitation to bring Japanese based companies and their production back to the country and, by its extension, increase the foreign investment as well. This move will essentially “remove China from the supply chain.”
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(Via)
