↗ Japan has launched an ambitious financing program to revitalize its domestic semiconductor manufacturing industry as geopolitical competition between China and the US increases.

↗ Australia’s (and especially Western Australia’s) access to critical minerals needed for semiconductor production makes closer Australia-Japan cooperation on critical minerals crucial.

↗ As global semiconductor supply chains are remade, Australia should focus on leveraging its mineral deposits and the expertise of Australian mining companies to develop more resilient supply chains, including by co-financing projects (or attracting Japanese investments) that support Japan’s semiconductor manufacturing aspirations. Investments should specifically target the extraction of lithium, nickel, and rare earths.

↗ Such an approach would be consistent with Australia’s Critical Minerals Strategy 2023-30, along with the Australia-Japan agreement on collaboration in the critical minerals sector.