Japan Press Weekly

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2022 April 27 - May 10 [ECONOMY]

US pressure leads to downfall of Japan’s semiconductor industry

Japanese Communist Party lawmaker Tamura Tomoko on April 28 at a meeting of the House of Councilors Cabinet Committee said that the downfall of Japan’s semiconductor industry was caused by the 1986 Japan-U.S. semiconductor trade agreement. She demanded that the government apply lessons learned from this to discuss Japan’s economic independence.

In the 1980s, Japan’s share in the global semiconductor chip market stood at 53%. However, it began shrinking after the conclusion of the bilateral agreement in July 1986 as the pact imposed on the Japanese government various obligations including promoting an increase in Japan’s purchase of foreign-made chips.

Tamura pointed out that under the agreement, the Japanese government was required to expand the use of foreign products compatible with Japanese chips to a wide range of industries. She added that Japan was effectively deprived of its right to determine semiconductor prices.

In response, Prime Minister Kishida Fumio admitted that the Japanese chip industry declined "with the semiconductor agreement with the U.S. as a trigger" which was concluded following Japan-U.S. trade conflicts.