Toshiba’s nuclear power and semiconductors are worrying the Japanese and U.S. government

【Global Economics Consolidated Report】 "Nihon Keizai Shimbun" reported on March 30 that due to Toshiba's US nuclear power company Westinghouse (WH)'s nuclear power plant business is closely related to the United States' energy policy, the Japanese and US governments are concerned The direction of the situation. The US government has also shown concern for the buyers of Toshiba’s semiconductor memory business due to security concerns. It is said that the two governments will discuss issues related to Toshiba’s nuclear power and the sale of semiconductors in the Japan-US Economic Dialogue to be held in Tokyo in April.

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According to Reuters, senior officials of the U.S. government showed concern for safety and security regarding Westinghouse’s application of Article 11 of the U.S. Federal Bankruptcy Code. Westinghouse has been supplying reactors to U.S. military nuclear-powered aircraft carriers and nuclear submarines. Some analysts believe that the Trump administration wants to avoid affecting safety and security. Therefore, in the Japan-US economic dialogue in mid-April that reached an agreement in the previous Japan-US summit, it is expected that Japan’s Finance Minister Aso and US Vice President Burns will also mention Westinghouse’s problems in addition to trade issues.

On the other hand, the Japanese government is concerned that Chinese mainland and Taiwanese companies will participate in the acquisition of Toshiba’s semiconductor memory business. Semiconductor memory is the core technology of the Internet of Things (IoT). If it is transferred to military use, confidential information may be leaked. For Korean companies to participate in acquisitions, Japanese government stakeholders also showed a cautious attitude, saying: "It will not be like China and Taiwan (worry), but also want to avoid as much as possible."

The Japanese government envisages the participation of Chinese and Taiwanese companies in acquisitions. It plans to use foreign companies to participate in acquisitions as an object of prior review under the Foreign Exchange and Foreign Trade Law. Based on the business content of the sale, it is proposed to stop and change the sales plan. .

According to the report, although there is security cooperation between Taiwan and the United States, if Hon Hai and other companies that have production bases in mainland China acquire it, there is a risk that the technology will be leaked to mainland China.

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