The United States and Japan, the world’s first- and third-largest economies respectively, have been brewing off an option to reach an accord on the supplies of critical parts of semiconductors in light of a sweeping chip shortage leading to production halts in a number of US auto factories, as the alliance might be well poised to rubber stamp an agreement on chip supply chains when the leaders of the countries would meet later this month, a Nikkei newspaper report published later this week had unveiled citing people familiar with the subject-matter.
In point of fact, latest Nikkei newspaper report that raised the prospects of a high-stake chip supply chain deal between Washington and Tokyo, came against the backdrop of a steep shortage in semiconductors in the United States, while a number of carmakers including the United States’ no.
1 conventional passenger carmaker General Motors which had recently curbed out outputs due to a staggering shortage in chips alongside Japan’s Toyota Motor Co. Besides, global smartphone supply chains had also been on the brisk of a collapse due to an incisive lag in semiconductors, which analysts claimed to have stemmed off an abrupt rise in sales of electronics products during pandemic-associated lockdowns last year.
United States, Japan eye chip supply chain deal
In tandem, Japanese PM Yoshihide Suga, who succeeded Shinzo Abe and marked up an end to a widely-hailed Abeconomic era, will be the first foreign leader to visit the US after President Biden had sworn to take over the Oval Office back in January 20 this year.
Nonetheless, the high-stake meet between Suga and Biden, had actually been scheduled to take place by April 9, but was pushed back later until April 16, Japanese Chief Cabinet Secretary said in a press briefing last week.
Alongside this, speaking at a regular press briefing, White House spokeswoman Jen Psaki reaffirms the delay adding “The visit reflected the importance we place on the bilateral relationship with Japan, and our friendship and partnership with the Japanese people. ”