Japan’s New Semiconductor Plant Boosts Economic Development, While Legal Challenges Hold Up U.S. Climate Disclosure Rule

Japanese Prime Minister Fumio Kishida recently visited a new semiconductor plant on the island of Kyushu, which has received over $7 billion in government support. The plant, majority-owned by Taiwan Semiconductor Manufacturing Co., marks the Taiwanese company’s first presence in Japan. Kishida expressed his belief that the project will have positive effects not only on the semiconductor industry but also on businesses like electric vehicles and electronics.

In addition to supporting the semiconductor industry, Japan has allocated around $33 billion to revitalize its industry in response to shortages caused by the pandemic. This move aims to reduce Japan’s reliance on chip imports and prevent disruptions in industries such as automotive manufacturing.

Meanwhile, in the United States, the Securities and Exchange Commission (SEC) announced a pause in the implementation of its new climate disclosure rule due to ongoing legal challenges. The rule, passed in March, requires certain public companies to report their greenhouse gas emissions and climate risks. However, due to legal challenges brought by some affected companies, the SEC has decided to pause its implementation until further notice.

The SEC emphasized its commitment to defending the validity of the climate rule, stating that it believes it acted within its authority to mandate disclosures that are important for investors. The rule is currently under review in the U.S. Court of Appeals for the Eighth Circuit.