As Japan pursues a chip-industry reboot, it’s being pressed to build America’s
Investment in the US and domestic growth investment are entirely compatible, said Japan’s industry minister
Japan is investing heavily to revive its once-dominant chipmaking industry, but many experts are skeptical about the impact of its latest US$21 billion pledge to build two chip factories in New York state. The investment is part of a broader US$550 billion plan to boost America's semiconductor industry in exchange for lower tariffs.
However, the deal does not guarantee Japan will gain advanced chip technology or domestic manufacturing capabilities. The US has imposed tariffs on various countries, including Japan's neighbors South Korea and Taiwan, in an effort to shrink the US trade deficit. Japan's industry minister, Ryosei Akazawa, acknowledged that investment in the US is compatible with domestic growth, but he also emphasized Japan's crucial role as a partner the US cannot do without.
The government is seeking financing for the chip factories, with Japanese banks reluctant to participate due to high costs. Japan's flagship chip project, Rapidus, faces skepticism, and the country has also backed AI and chip companies like Noetra, TSMC, Micron, and Kioxia to locate chipmaking capacity in Japan.
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