Berliner Boersenzeitung - Japan ramps up tech ambitions with $65 bn for AI, chips

EUR -
AED 4.278661
AFN 76.972265
ALL 96.540713
AMD 443.663031
ANG 2.085508
AOA 1068.353542
ARS 1670.714664
AUD 1.756079
AWG 2.097095
AZN 1.970474
BAM 1.955612
BBD 2.345474
BDT 142.476293
BGN 1.955656
BHD 0.439209
BIF 3440.768991
BMD 1.165053
BND 1.508555
BOB 8.047226
BRL 6.31668
BSD 1.164488
BTN 104.703275
BWP 15.471512
BYN 3.347964
BYR 22835.037223
BZD 2.342065
CAD 1.608688
CDF 2600.397817
CHF 0.938578
CLF 0.027417
CLP 1075.580909
CNY 8.23704
CNH 8.2328
COP 4467.977946
CRC 568.845276
CUC 1.165053
CUP 30.873902
CVE 110.25534
CZK 24.258501
DJF 207.370051
DKK 7.469055
DOP 74.53283
DZD 151.520976
EGP 55.366828
ERN 17.475794
ETB 180.628723
FJD 2.628245
FKP 0.873824
GBP 0.874867
GEL 3.139789
GGP 0.873824
GHS 13.246669
GIP 0.873824
GMD 85.048888
GNF 10118.983106
GTQ 8.920257
GYD 243.635516
HKD 9.064467
HNL 30.671049
HRK 7.532648
HTG 152.445334
HUF 383.361244
IDR 19448.519649
ILS 3.735515
IMP 0.873824
INR 104.913948
IQD 1525.546692
IRR 49063.33837
ISK 148.823543
JEP 0.873824
JMD 186.392069
JOD 0.82602
JPY 181.306736
KES 150.583249
KGS 101.883998
KHR 4662.551453
KMF 491.652703
KPW 1048.547475
KRW 1708.981376
KWD 0.357764
KYD 0.970502
KZT 588.920817
LAK 25252.462287
LBP 104282.820234
LKR 359.193903
LRD 204.962921
LSL 19.736317
LTL 3.440098
LVL 0.704729
LYD 6.330391
MAD 10.755665
MDL 19.814009
MGA 5194.500278
MKD 61.568832
MMK 2446.644943
MNT 4133.578153
MOP 9.338262
MRU 46.438533
MUR 53.732545
MVR 17.936903
MWK 2019.305739
MXN 21.199973
MYR 4.791898
MZN 74.458323
NAD 19.736317
NGN 1690.43337
NIO 42.855693
NOK 11.792101
NPR 167.522884
NZD 2.016375
OMR 0.447959
PAB 1.164588
PEN 3.914423
PGK 4.941503
PHP 68.846439
PKR 326.474692
PLN 4.229655
PYG 8009.229496
QAR 4.244746
RON 5.08965
RSD 117.407045
RUB 89.299023
RWF 1694.337001
SAR 4.373105
SBD 9.589075
SCR 15.747417
SDG 700.782152
SEK 10.960066
SGD 1.51073
SHP 0.874091
SLE 27.666933
SLL 24430.575028
SOS 664.33609
SRD 45.004845
STD 24114.243202
STN 24.497538
SVC 10.189976
SYP 12881.793236
SZL 19.721103
THB 37.106778
TJS 10.68471
TMT 4.089336
TND 3.416115
TOP 2.805168
TRY 49.587915
TTD 7.89502
TWD 36.254936
TZS 2857.291024
UAH 48.888497
UGX 4119.586008
USD 1.165053
UYU 45.546205
UZS 13931.71953
VES 296.566475
VND 30710.794959
VUV 141.953636
WST 3.248878
XAF 655.893902
XAG 0.019938
XAU 0.000277
XCD 3.148613
XCG 2.098789
XDR 0.815722
XOF 655.893902
XPF 119.331742
YER 277.923824
ZAR 19.779921
ZMK 10486.868965
ZMW 26.92341
ZWL 375.146565
  • RBGPF

    0.8500

    79.2

    +1.07%

  • CMSC

    -0.1200

    23.31

    -0.51%

  • RIO

    0.3000

    73.36

    +0.41%

  • GSK

    -0.0150

    48.395

    -0.03%

  • BTI

    0.2250

    57.235

    +0.39%

  • SCS

    0.1900

    16.33

    +1.16%

  • CMSD

    0.0000

    23.25

    0%

  • RYCEF

    0.3100

    14.8

    +2.09%

  • RELX

    -0.6800

    39.64

    -1.72%

  • NGG

    0.2600

    75.67

    +0.34%

  • AZN

    -0.1700

    90.01

    -0.19%

  • BCC

    -0.0500

    73

    -0.07%

  • VOD

    0.1120

    12.582

    +0.89%

  • BCE

    -0.2500

    23.3

    -1.07%

  • JRI

    -0.0400

    13.75

    -0.29%

  • BP

    0.1100

    35.94

    +0.31%

Japan ramps up tech ambitions with $65 bn for AI, chips
Japan ramps up tech ambitions with $65 bn for AI, chips / Photo: Richard A. Brooks - AFP

Japan ramps up tech ambitions with $65 bn for AI, chips

Japan is readying a $65-billion push in microchips and artificial intelligence aimed at reclaiming its status as a global tech leader and meeting the urgent challenges of its ageing, shrinking population.

Text size:

The 10-trillion-yen package, which lawmakers could approve this week, is also seen as preparation for an uncertain world as fears grow of a potential Chinese invasion of chip powerhouse Taiwan.

But analysts warn that question marks remain over worker shortages and whether Japan can generate enough electricity for energy-hungry AI data centres.

After dominating in tech hardware during the 1980s, "Japan had a quite a long period of almost just sitting back and observing a lot of this innovation, particularly when it comes to artificial intelligence", said Kelly Forbes, president of the AI Asia Pacific Institute.

"What we have seen in the last maybe two to three years is Japan really waking up to the potential" of such developments, she told AFP.

Japanese tech investor SoftBank and US computing giant Nvidia last week unveiled ambitious proposals to build an "AI grid" across the nation.

That followed a flurry of US investments earlier this year, including from Microsoft, a partner of ChatGPT-maker OpenAI.

AI-powered automation can help Japan, which has the world's second oldest population after Monaco, said Seth Hays, author of the Asia AI Policy Monitor newsletter.

"Demographically speaking, Japan's just going to be crunched on that," he said.

So "they need to utilise AI in order to get those productivity gains that keep the country going".

- Energy problem -

The new government money will bolster Japan's home-grown Rapidus project to produce next-generation semiconductors.

Tokyo has already promised up to four trillion yen in subsidies to help triple sales of domestically produced microchips by 2030.

"Semiconductors are really at the core of AI innovation," said Forbes.

Most of the world's chips are made in Taiwan -- but fears are growing of a blockade or invasion by Beijing, which claims the self-ruled island as part of its territory.

Facing pressure from customers and governments to diversify its production, Taiwanese chip giant TSMC in February opened a $8.6-billion chip factory in southern Japan, and is planning a second facility in the country for more advanced chips.

US President Joe Biden's administration is also pouring money into building chip factories on American soil, including $6.1 billion to Micron and $6.6 billion for TSMC.

Japan's investments are an attempt "to remain competitive in that space, but also... to stay prepared around this geopolitical tension that we know is growing", Forbes said.

But the country needs to find a way to power these energy-intensive projects, from chip manufacturing to running data centres to train AI models.

Japan is heavily dependent on fossil fuel imports, with the government working to bring back online nuclear plants that were halted after the 2011 Fukushima disaster.

"In Taiwan, TSMC takes up eight percent of our electricity," said Hays, who is based in Taipei. "Where's Japan going to get the energy?"

- 'Soft' regulation -

Among Nvidia's collaborations with SoftBank is a new supercomputer using the US company's cutting-edge Blackwell AI chips.

At a speech in Tokyo, Nvidia boss Jensen Huang vowed to "transform the telecommunications network into an AI network" in Japan.

"This is completely revolutionary," he said, giving the example of a radio tower that acts as an "air traffic control, essentially, for self-driving cars".

Despite the hype, Japan has some way to go -- in this year's global classification of digital competitiveness by Swiss management school IMD, it was ranked just 31st.

To boost the sector, "Japan's copyright law is actually one of the most AI-friendly copyright laws in the world", Hays said.

"It essentially allows AI companies to train on copyrighted data, even for profit," he said, adding that while Singapore has similar rules, the approach is unusual.

At the same time, Japan has been "taking a lead" on international discussions on AI, including with an initiative launched at last year's G7 summit in Hiroshima.

Prime Minister Shigeru Ishiba has also pledged to "formulate a new support framework to attract more than 50 trillion yen in public and private investment over the next 10 years" for AI and chips.

Japan can benefit from AI advances in healthcare, Forbes said, calling the latest investments an attempt to "put Japan at the forefront of this technological revolution".

(T.Renner--BBZ)