Japan’s MUFG to start buying chips to ease burden of inventory strain – Nikkei


TOKYO (Reuters) – Japan’s Mitsubishi UFJ Financial Group Inc will launch a brand new firm that can briefly purchase up firms’ inventories, together with semiconductors, to ease the monetary strain on them, the Nikkei newspaper stated on Tuesday.

The transfer comes as extra firms are being compelled to maintain bigger inventories readily available to take care of ongoing disruptions within the world provide chain. But having to maintain extreme inventory carries threat, together with potential points with money circulation.

The major banking arm of Japan’s largest lender will launch the corporate, MUFG Trading, which is able to briefly maintain firm inventories and promote again to them as wanted, the Nikkei stated.

No one was instantly accessible for remark at MUFG.

The new firm will make a revenue from the distinction in what it pays for the inventories and what it sells them again to its shoppers for, it stated.

The financial institution expects inventories to be a spread of commodities from semiconductors to corn, the paper stated.

Toyota Motor Corp was initially one of the few automakers that was in a position to address a scarcity of semiconductors due to a big stockpile of them, earlier than being compelled to reduce manufacturing this yr.

(Reporting by Satoshi Sugiyama; Editing by David Dolan and Ed Osmond)

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