Japan Tightens Chip Equipment Investment Rules for Foreigners

Japan will now require foreign entities to provide notification before making direct investments in Japanese companies related to chipmaking equipment and other key technology sectors. This measure, intended to safeguard national security and prevent technology leaks for military use, expands existing regulations on foreign investment in "core business sectors" crucial to Japan`s economic security. The government believes this targeted approach will have minimal impact on businesses. This initiative aligns with Japan`s broader strategy to revitalize its domestic semiconductor industry, including attracting foreign chipmakers and substantial government funding to bolster domestic production.