Japan invests $65 billion in AI and chips to boost tech leadership

Japan plans to invest $65 billion in microchips and artificial intelligence to regain its position as a tech leader. This funding aims to address challenges from its aging population and geopolitical tensions, particularly concerns over Taiwan's semiconductor industry. The investment will support the Rapidus project for next-generation semiconductors and aims to triple domestic chip sales by 2030. However, Japan faces challenges, including worker shortages and energy supply for its AI data centers, as it relies heavily on fossil fuel imports. Recent collaborations between SoftBank and Nvidia aim to create an "AI grid" in Japan. Despite these efforts, Japan ranks 31st in global digital competitiveness, highlighting the need for further advancements in the tech sector.