Japan Plans $65 Billion Tech Investment

Japan is set to invest $65 billion in microchips and artificial intelligence to reclaim its status as a global tech leader and address challenges from its ageing population. The 10 trillion yen package aims to bolster domestic semiconductor production, especially in light of concerns over potential Chinese aggression towards Taiwan. Despite this ambitious plan, analysts highlight issues such as worker shortages and energy demands for AI data centres. Notable initiatives include proposals from SoftBank and Nvidia to create an 'AI grid' across the country, alongside substantial investments from US tech firms like Microsoft. Experts argue that AI automation is critical for Japan's productivity, given its demographic challenges. The government is also supporting the Rapidus project, aiming to triple domestic microchip sales by 2030.