Why Japan's $67 Billion Bet on Chips Matters | Momentum
Discover why Japan's significant investment of $67 billion in semiconductors is essential for the tech industry. Learn how Japan is gaining momentum in chip production and outspending major competitors like the United States and Germany.
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Take a look around you.
Can you imagine what our world would look like
if there were no mobile phones,
computers,
TVs,
cars,
trains,
or even the internet?
These modern comforts, which we take for granted,
are all powered by semiconductors.
And most of these small but mighty chips
are manufactured right here in Asia.
While Taiwan leads the world in the production of advanced semiconductors, Japan is gaining
momentum outspending the United States and Germany on chip subsidies in terms of GDP.
Japan is going all in on semiconductors, making a $67 billion bet to once again become a global
chip powerhouse.
But is it all too little, too late?
Can you?
and Japan by its way back into the semiconductor race.
I'm Haslinda Amin, and this is Momentum.
In the 80s and early 90s, Japan ruled the chip world.
In 1988, its companies controlled 50% of global chip sales.
Then, the dot-com bubble burst.
Japan's economy began a lengthy period
of economics tech nation, and its chip technology began to slip behind its rivals in Taiwan
and the US.
Japan wants to revive its semiconductor glory days of the 1980s, and it's mobilizing everyone
– the government, the private sector, academia, even international partners like TSMC and
IBM.
That means billions in investments and billions more in subsidies.
And the stakes are high.
Advanced chips will serve as a foundation for a dozen critical technologies,
including artificial intelligence, weapon systems, and electric vehicles.
Devices like smartphones and gaming consoles are all powered by semiconductors.
tiny silicon chips smaller than a fingernail,
which often take weeks, even months, to be fabricated.
The semiconductor market is projected to be worth $1 trillion by 2030.
Currently, a large portion of global production is based in Taiwan and South Korea,
making the supply chain vulnerable to geopolitical tensions.
China has suggested that China could be prepared to invade Taiwan by 2027.
So clearly there is urgency behind this.
Mr. Kanazashi, Japan dominated the chip industry back in the 1980s, 1990s.
Then it was overtaken by rivals like South Korea, like Taiwan.
And now it's kind of back with a vengeance, betting big on semiconductors.
Why is that?
During the time of COVID and also considering the situation of the Russian invasion into
Ukraine, disruption in the semi-supply chain happened, which caused a complicated situation
to the public life in Japan.
So there are many end products like cars or other electric devices like microwaves or
etc. didn't come to the people's lives.
