Japan has asked Taiwan to beef up production of semiconductors amid a serious global shortage that has affected businesses such as automakers, the economy minister said Tuesday.
Strong demand for smartphones and 5G network equipment as well as robust recovery in auto sales from a slump due to the coronavirus pandemic has made chip supplies tight, forcing Honda Motor Co., Subaru Corp., Toyota Motor Corp. and Nissan Motor Co. to cut or halt output this year.
Chips are increasingly used in cars, from sensors to emissions controls and video displays.
Taiwan is home to semiconductor giant Taiwan Semiconductor Manufacturing Co.
"In coordination with the auto industry, the Japanese government is requesting Taiwan authorities to work for an increase in (semiconductor) output through the Japan-Taiwan Exchange Association," Hiroshi Kajiyama, minister of economy, trade and industry, told a press conference.
The exchange association serves as Japan's de facto mission in Taiwan in the absence of formal diplomatic ties.
"We will continue to closely monitor the situation but semiconductors are still short in supply," Kajiyama said.
The United States and Germany have also asked for Taiwan's cooperation to beef up semiconductor production in response to supply disruptions, with TSMC intending to comply with the request, according to Taiwanese media reports.
