Aug. 16, 2024
Japan Tightens Foreign Trade Regulations on Chipmaking Equipment to Safeguard Supply Chains
TMTPOST--Japan has expanded its foreign trade regulations to include chipmaking equipment in a bid to secure stable supply chains, the Ministry of Finance announced on Friday. The new rules require foreign investors to provide prior notice when making direct investments related to chipmaking equipment. This includes acquiring a 1% or larger stake in a listed company or purchasing shares in an unlisted company, the ministry stated. The regulations also aim to mitigate the risks of technology leakage and prevent the misuse of commercial technologies for military purposes. In addition to chipmaking equipment, the ministry has added advanced electronic components, machine tool parts, marine engines, fiber optic cables, and multifunctional machines to the list of "core business sectors." With these additions, all specified critical products under Japan's economic security promotion act are now covered by the core business sectors list.
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