In recent years, as the global trade gradually grew more volatile due to conflicts, tariffs and pandemic-related disruptions, Japan has been working to rebuild its domestic semiconductor industry.

The country once dominated the market of high-performance electronics and still boasts some of the most cutting-edge chip fabrication technology in the world. In the 1980s, however, Japan effectively allowed nations like South Korea to take over large-scale production of basic chips as the sector was not very profitable at the time. It was also understood that international trade would not be impeded, allowing Japan to rely on imports.

However, that understanding has changed, said Kazuto Suzuki, a professor of science and technology policy at Tokyo University. Talking to DW, he pointed to the disruption of supply chains triggered by the coronavirus pandemic.

"The sudden shortage of chips in Japan, Europe and the US made the Japanese government realize that if domestic industry was not to go into decline, then we would need our own dedicated supplies," he said.

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