Taipei: Japanese geoeconomist Satoshi Inomata on Tuesday called for semiconductor collaboration between Taiwan and Japan, stating that the two sides working together could "exert geo-economic powers" to better safeguard their economic security.
According to Focus Taiwan, Inomata, a senior researcher at the Institute of Developing Economies in Japan, spoke at a forum on the sidelines of the SEMICON trade show in Taipei. He emphasized that Taiwan and Japan could form a robust partnership leveraging semiconductor supply chains to exert regional geo-economic influence.
Inomata introduced the concept of "deterrence by denial," borrowing from military terminology, to describe how economic partnerships among like-minded countries can serve as a strategic defense mechanism. He advocated for friend-shoring, a trade practice focusing supply chain networks on countries regarded as political and economic allies, as a means to enhance economic security.
He further explained that such partnerships could help prevent shortages in individual countries by sharing information on supply capacities and critical supplies. These measures, he argued, would decrease the impact of economic coercion from opponents, including export restrictions, thereby deterring hostile actions.
His remarks coincided with discussions among panelists at the forum who noted that the semiconductor sector is becoming increasingly intertwined with national security strategies. Peter Fatelnig, a digital economy policy official from the European Union delegation to Japan, mentioned that semiconductor policy is increasingly shaped by global security policies and the broader international security landscape.
Philip Wong, a professor of engineering at Stanford University, highlighted the importance of trust in collaboration among private companies in the semiconductor industry. He pointed out that the evolving dynamics between fabless chip firms and foundries necessitate a high degree of trust, especially as design and manufacturing sides work closely on chip co-optimization and co-design.
Wong, who also serves as the chief scientist at TSMC, emphasized the necessity for companies to share industrial roadmaps, including technology and production plans, to foster effective collaboration in the semiconductor domain.