Nvidia to Build Semiconductor Factories in Japan

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While Nvidia is collaborating with Japanese firms to build semiconductor factories or AI graphics chips, China is investing in making Hong Kong a new center for semiconductor production.

Prominent GPU manufacturer Nvidia, headquartered in Santa Clara, California, has announced its intention to establish semiconductor factories in Japan. This development comes amidst the increasing demand for graphics processing units (GPUs), particularly for artificial intelligence applications.

As per recent regional news sources, Nvidia’s CEO Jensen Huang, during a meeting with Japanese Prime Minister Fumio Kishida, committed to prioritizing Japan in meeting the surging demand for Nvidia’s GPUs.

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Dark photo of an electronic circuit board

The Japanese government is actively seeking investment opportunities in the production of advanced semiconductors, vital for emerging technologies. Reports indicate that Kishida’s administration has allocated billions of dollars to support Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia’s rival and a leader in advanced chip production. Also, Rapidus, a domestic startup is aspiring to compete in production of high-end chips.

In a related development, responding to Hong Kong’s re-industrialisation initiatives, Chinese auto chip manufacturers are reportedly planning substantial investments in the city. According to government officials, these semiconductor firms from China are investing in research and development and production facilities in Hong Kong, aiming to diversify the region’s economy. The goal is to enhance production efficiency through the adoption of advanced technologies such as robotics, artificial intelligence, the Internet of Things, and 3D printing.

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