Asia Tech Wire (Aug 16) -- Japan's Ministry of Finance said Friday that the country has decided to apply foreign trade regulations to chip-making equipment as part of efforts to ensure a stable supply chain.

It said foreign investors must give prior notice when making direct investments in equipment related to chip manufacturing, including acquiring 1% or more of the shares of a listed company or buying shares of an unlisted company.

Other products on the list of so-called "core business areas" include advanced electronic components, machine tool parts, marine engines, fiber-optic cables and multifunctional machinery, the ministry said.

The move comes as Japan tries to revitalize the country's semiconductor production capacity as a pillar of its economic security strategy.

Over the past three years, Japan has allocated about 4 trillion yen ($26.9 billion) to recharge its semiconductor industry and boost digitization.

The government, led by Prime Minister Fumio Kishida, is drafting legislation to further boost investment in Japan's domestic chip-making capacity.