Japan's government is planning to designate as "critical goods" advanced electronic components, such as those used in data centers and electric vehicles, in a bid to bolster the nation's economic security.

The government partially subsidizes capital investments, stockpiling and other steps to secure stable supplies of materials designated under law as "specified important goods." These products are considered vital to people's lives, and Japan is dependent on certain countries and regions to supply them.

Officials are considering adding cutting-edge electronic parts, including those widely used in data centers and EVs, on top of 11 goods already on the list. Those 11 items include critical minerals such as lithium.

Multilayer ceramic capacitors -- parts used to stabilize voltage -- are among the items expected to be added to the list.

Japanese manufacturers have a large share of the multilayer ceramic capacitor global market, which was valued at about 13 billion dollars in 2021.

Government officials say the latest move is critical in terms of Japan's security. They say this is intended to boost the competitiveness of Japanese businesses and prevent technologies from flowing out, amid China's push to ramp up the production of key components.

Prime Minister Kishida Fumio's Cabinet is expected to make a decision following discussions by a panel of experts.