Tech Desk 
Nov 20, 2024
Japan is making a bold move to reclaim its position as a global tech leader with a $65 billion investment in artificial intelligence (AI) and semiconductor technology. This initiative, aimed at boosting innovation and addressing the challenges of its ageing population, marks a step forward for the country.
The 10-trillion-yen package, expected to be approved this week, will support projects like Japan's Rapidus initiative for next-generation semiconductors and advanced AI systems.
It also prepares the nation for potential disruptions in chip supply chains, particularly due to concerns over Taiwan, a key global chip producer.
AI-powered automation is seen as essential for Japan, which has one of the world’s oldest populations. Experts highlighted the importance of AI in improving productivity and maintaining economic stability.
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Meanwhile, major tech players like SoftBank and Nvidia have announced plans to develop an AI grid in Japan, while international companies such as Microsoft continue to invest in the country’s tech ecosystem.
The initiative also includes subsidies to triple domestic semiconductor sales by 2030. However, challenges remain. Producing chips and running AI-powered data centres require massive energy, and Japan, heavily reliant on fossil fuel imports, is working to restart nuclear plants to meet these needs.
Japan is also focusing on AI-friendly policies to attract global investment. The country’s relaxed copyright laws enable AI companies to train on copyrighted data for profit.
Additionally, Japan is actively participating in global discussions on AI regulation, ensuring its policies align with international standards.
