Tag Archives: China and United States war

Great Fear and Uphill Struggle: US, Japan and China

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In Japan’s glory days of the the late 1980s, the country accounted for about half of the global semiconductor industry, and the U.S. was left to beg, plead and threaten as it tried to get a small slice of the Japanese market. A bestselling book in Japan during the Cold War’s waning days called “The Japan That Can Say No” suggested that Tokyo could leverage its dominance in semiconductors to control the world’s military balance—and perhaps help the Soviet Union instead of the U.S.

Today, the great fear driving chip investments in both U.S. and Japan is China. The U.S. policy calls for helping allies such as Japan build a supply chain that is less exposed to risks posed by a hostile Beijing. While the U.S. is expanding its own chip production through the Chips and Science Act, which includes some $53 billion of spending, people involved in the Rapidus project (between U.S. and Japan) said the U.S. needed further global diversification. ..The Rapidus project aims to get Japan back into the heart of the business of chip making by building facilities on the northern island of Hokkaido, known for its ski resorts. Rapidus says it wants to begin pilot production in 2025 and full-scale production in 2027. Some 6,000 workers are being drafted to put up the factory.

Japan’s Ministry of Economy, Trade and Industry has said that it intends to help Rapidus achieve its goals, and that it wants the Japanese semiconductor industry to have revenue of some $100 billion in 2030, triple the 2020 figure. The ministry is pitching in billions of dollars for additional projects in Japan. TSMC is building an $8.6 billion factory on the southern island of Kyushu and is in talks about a second. Assuming it gets the money, Rapidus still has to master a level of manufacturing technology attained so far by only two companies, TSMC and South Korea’s Samsung Electronics. Both are projected to have the ability to mass-produce 2-nanometer chips by 2025.

Excerpts from Peter Landers and  Yang Jie, Japan’s Plan to Become a Chipmaking Champ Hinges on This Football-Loving Engineer, WSJ, July 6, 2023

Squeezing China: the Asian NATO

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In defense terms, America’s “pivot to Asia” is not a single move, but a weaving of initiatives—with overlapping bi-, tri-, quadri- and multilateral deals—to create an ever-thickening lattice on China’s periphery. Some deals are modest; many are uncertain if tested in war. But they amount to the “fortification of America’s forward defense perimeter in the western Pacific.”…Despite its pacifism, Japan is greatly boosting defense spending. American marines in Okinawa are practicing how to scatter and defend the islands and sea passages. The next link, Taiwan, is under intense strain, given China’s aim to retake the self-governing island by force if necessary. America may soon announce the first “drawdown” of weapons from its own arsenal, pre-emptively strengthening Taiwan much as it has armed Ukraine. The Philippines, the next link, is weaker but has agreed to give America access to nine bases in the country; in return America is helping to beef up its forces….

America is devising ways to disperse its jets in wartime and hardening the defense of Guam. It wants to project more power from Australia, where it rotates air force and marine units. It is working with Britain to supply nuclear-powered submarines to Australia under the aukus deal; the three are also working on new weapons, including hypersonic missiles. Farther afield, the Quad—America, Australia and Japan working with India—is not a formal security grouping, but their navies exercise together. Across the region, American-led war-games are becoming bigger and more sophisticated. Sometimes America’s security arrangements are limited, for instance its new defense deal with Papua New Guinea; or its efforts to help littoral states improve “maritime domain awareness” to, say, curb illegal fishing by Chinese fleets. This, too, helps enmesh America in the region…

China accuses America of building an “Asian NATO”. But the reality is a looser system. America’s friends and allies in the “Indo-Pacific” have no mutual-defense commitments akin to NATO’s Article 5, under which an attack on one is an attack on all, nor integrated multinational commands.

Excerpts from America and China: The Chain, Economist, June 15, 2023