As governments seek to secure supplies of the materials needed for the "green transition," companies are bumping up against economic realities in an uncertain policy environment. (Nikkei montage / Photo by Ken Kobayashi and Yuki Fukumoto)

Japan, South Korea struggle to reduce reliance on China tech materials

Governments and companies in key industries hedge against geopolitical tensions

AKANE OKUTSU and KIM JAEWON, Nikkei staff writers

November 27, 2024 06:00 JST

TOKYO/SEOUL -- When Japan decided to get back into the chipmaking game, trading house Sojitz saw a chance to grab a piece of the action.

The Tokyo-based company is looking to build a plant in Kyushu, the same region where chip titan Taiwan Semiconductor Manufacturing Co. is building its first Japanese factory, to process fluorspar into anhydrous hydrogen fluoride. The idea is to meet as much as 40% of Japan's annual demand for the key chipmaking chemical, slashing the country's dependence on China for the chemical and its key ingredients.