Japan is preparing a $65 billion initiative to advance artificial intelligence (AI) and semiconductor technology, aiming to reclaim its position as a tech leader while addressing demographic challenges. Lawmakers are expected to approve the package, designed to strengthen AI integration and boost domestic chip production amid global uncertainties, including tensions with China over Taiwan.
The plan supports projects like the Rapidus initiative for cutting-edge semiconductors and collaborations such as SoftBank and Nvidia’s AI-driven infrastructure. US investments, including by Microsoft and TSMC, complement these efforts. Analysts highlight the urgency for Japan to overcome worker shortages and secure sustainable energy resources for AI and chip-related projects.
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With its aging population, Japan views AI-powered automation as a critical tool for boosting productivity. However, questions persist about its readiness to power energy-intensive projects given its reliance on fossil fuel imports and limited renewable energy infrastructure.
Japan is also taking steps to attract global investments and enhance its AI regulation framework, leveraging AI-friendly copyright laws and participating in international discussions on responsible AI use. These investments aim to position Japan as a leader in the next wave of technological innovation.
