Japan lists MLCC as critical to economic security

Chiang, Jen-Chieh, Taipei, DIGITIMES Asia 0


The Japanese government has announced that advanced electronic components such as multilayer ceramic capacitors (MLCCs) will be included in a list of categories deemed critical for economic security, making advanced electronic components the 12th category.

According to reports from Nikkei and Nikkan Kogyo, the Japanese government's cabinet meeting has officially decided to classify advanced electronic components as critical for economic security. The legal basis for this decision stems from the "Economic Security Promotion Act" passed by the Japanese parliament in 2022, which allows for the designation through administrative orders.

In 2022, the Japanese government had already designated 11 items, including semiconductors, rechargeable batteries, critical minerals, aircraft components, ship components, machine tools and industrial robots, permanent magnets, natural gas, cloud software, antibacterial drugs, and fertilizers, as the categories affecting economic security.

To safeguard the supply chain security of these items, the Japanese government can introduce specific plans in accordance with the law. By October 2023, the Japanese government had approved 57 investment and development projects and various initiatives to promote the diversification of supply sources, increase inventory, and reduce relevant supply chain disruption risks.

It is reported that among advanced electronic components, the main reference is MLCCs. MLCCs are widely used in smartphones, electric vehicles (EVs), automotive, medical equipment, communication devices, and other industries. With the latest addition, the Japanese government may introduce subsidy programs or initiatives to promote supply chain diversification specifically for MLCCs and other electronic components.

Furthermore, uranium ore has been added to the category of critical minerals. Most of the enriched uranium used in nuclear power plants is produced by Russian manufacturers. To address the current situation, uranium has also been included in the category of critical minerals.