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Supply Chain

Chips and batteries: Japan to amp up supply chains with subsidies

Tokyo follows U.S. and EU, but program could violate WTO rules

Japan is scrambling to shore up its supply of semiconductors. (Photo by Hideaki Ryugen)

TOKYO -- The Japanese government plans to set up a subsidy program to assist companies developing chips, large-capacity batteries and other key materials to ensure a steady supply of strategic products, Nikkei has learned.

The move comes after U.S.-China trade tensions and the pandemic have exposed vulnerabilities in Japan's supply chains. Its reliance on China for masks and other medical supplies has led to acute shortages, and the lack of homegrown vaccines for COVID-19 has delayed inoculating its population.

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