Survey: Japan's chip plan is supported by 80% of business leaders

A Nikkei survey showed that more than 80 percent of Japanese business leaders support the Japanese government's push for domestic semiconductor production.

Respondents to the survey of about 100 leaders of major companies agreed that the proposed measures would lead to stable supplies, according to the Nikkei Asian Review. "The shortage of semiconductors, which are a core component of our digital society, could cause Japan to fall behind in the global competition for productivity in various industries," the head of a major distribution company said in the survey.

Nissui President Shingo Hamada believes that it is desirable to promote the development of domestic production and semiconductor-related human resources in Japan through industry-government-university cooperation. Tohnichi President Yuji Fukasawa pointed out that supporting domestic production is important not only for economic security and promoting digital transformation of enterprises, but also from the perspective of cultivating domestic growth industries and improving the overall economic level.

It is reported that nearly three-quarters (74.6%) of the respondents said that they were affected by the shortage of chips that started around 2020. Of those, 91.4 percent said the shortages eased as demand for smartphones and PCs cooled, but the impact continued.

This month, the Japanese government designated 11 key fields, including semiconductors, batteries and rare earths, as key items requiring stable protection even in emergencies. This move is based on the "Economic Security Promotion Law" promulgated in May this year, which is intended to guarantee the supply of strategic resources that are directly related to economic security but heavily rely on overseas resources.