Japanese Foreign Investment Screening

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New regulations require foreign entities to seek approval when investing in Japanese semiconductor manufacturing

Summary

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The Japanese Ministry of Finance announced that foreign investors must now “file a prior notification for screening” when making an inward direct investment on companies that build semiconductor manufacturing tools and advanced electronic components.

The Economic Security Promotion Act was enacted as a response to international events, including Russia ’s politically motivated halt of energy exports to Western Europe during the early stages of its invasion of Ukraine .

Japan has recently invested billions of dollars in semiconductors.

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