As Japan’s new chip panel looks to secure tech supplies, could it be Abe’s route to a comeback?

The ruling Liberal Democratic Party is looking to secure the nation’s semiconductor supply amid global shortages

The panel will be composed of party heavyweights including Abe, giving him a chance to burnish his credentials ahead of a potential third stint as PM

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Former Japanese prime minister Shinzo Abe is on a panel of senior politicians tasked with creating stronger supply chains with the US and other key partners in the semiconductor sector. Photo: Reuters

Published: 7:06pm, 19 May 2021Updated: 10:02am, 20 May 2021

Japan is planning to boost spending to safeguard its stockpiles of cutting-edge chips and batteries for electric vehicles as demand for semiconductors continues to outpace supply, leading to disruptions for carmakers and other producers.

The Nikkei business daily reported that Japan’s ruling Liberal Democratic Party (LDP) is putting together a panel of senior politicians that will be tasked with creating stronger supply chains with the United States and other key partners in the semiconductor sector.

The new panel is to be chaired by Akira Amari, a former minister of economic policy, and will include a number of other party heavyweights as advisers, including former prime minister Shinzo Abe and current finance minister Taro Aso.

Analysts suggest Abe’s presence is significant as he is considered to have a better command of international relations than his successor, Prime Minister Yoshihide Suga, and will be able to use his connections to achieve the panel’s aims.

The panel intends to draw up a list of recommendations later this year, with policies funded under the 2022 budget. As well as reinforcing existing supply chains and developing new ones, the plan is to devise advanced new chips in Japan, create the manufacturing technologies to turn them out in large numbers and encourage US firms to set up operations in Japan for the domestic market.

Japan currently has a ¥200 billion (US$1.8 billion) reserve to support domestic chip manufacturers, a figure that is likely to be significantly increased in the next three years.

Global demand for semiconductors continues to outpace supply. Photo: Shutterstock