- The joint venture aligns with Japan’s semiconductor strategy outlined in June 2021
- This move is part of Tokyo’s broader strategy to invest in advanced technology
Nvidia Corp has recently announced a construction plan for a semiconductor plant in Japan. The agenda behind this initiative is to boost the generative AI technology sector.
Nvidia’s CEO Jensen Huang, during a meeting with Japan’s Economy Minister Yasutoshi Nishimura, emphasized the value of local expertise and industrial capacity in driving a robotics revolution. This move is part of Tokyo’s broader strategy to invest in advanced technology, which is expected to spur economic growth.
Prime Minister Fumio Kishida has allocated significant financial support to bolster high-end chip manufacturing companies like TSMC and Rapidus, strengthening Japan’s semiconductor industry. During discussions with Kishida, Nvidia’s CEO, Huang, emphasized the growing demand for their GPUs and pledged to prioritize their supply to Japan. This commitment is crucial as major Japanese corporations such as NEC Corp., SoftBank Corp., Sakura Internet Inc., and Nippon Telegraph and Telephone Corp. intensify their efforts in generative AI research and adoption.
This joint venture aligns with Japan’s semiconductor strategy outlined in June 2021, which aims to regain a leading position in the chip industry through collaboration with the U.S. and substantial subsidies. These efforts are part of an extensive $88 billion extra budget aimed at mitigating inflation’s impact on households and businesses.
The increasing demand for generative AI applications, exemplified by OpenAI’s ChatGPT, relying on Nvidia A100 GPUs, has resulted in a significant boost in data center revenues for Nvidia. This underscores the strategic importance of enhancing domestic GPU production capabilities.