Prime Minister Kishida Invites US Executives to Invest in Japan’s Emerging Tech Sectors
The economic landscape has seen significant shifts over the past few decades, with once formidable economic rivals forging new partnerships. One such collaboration is taking place between Japan and the United States, as the Asian country looks to attract American investment in its emerging technology sectors, including artificial intelligence (ai), semiconductors, and clean energy.
Speaking before a gathering of American CEOs in Washington, Japanese Prime Minister Fumio Kishida extended an invitation to US businesses to collaborate in “critical and emerging technology.” He assured them that any investment made in Japan would not only benefit the Asian country but also serve as a source for further investments by Japanese entities into the US.
A Historical Shift: US-Japanese Business Ties Amidst Geopolitical Tensions
With geopolitical tensions on the rise, both Japan and the US are seeking to modernize their political and military alliance. As they address regional threats from North Korea’s weapons testing and China’s aggression in the South China Sea, the two countries are strengthening their economic ties.
Prime Minister Kishida acknowledged that the world is at a “historic turning point,” and Japan’s defense posture must change to meet these challenges. In preparation for this shift, the Japanese government has announced subsidies worth up to 943 billion yen ($6.27 billion) for Tokyo-backed chipmaker Rapidus.
Rapidus: Japan’s Comeback in Chipmaking and a New Era of Collaboration
Japan was once a leading player in the semiconductor industry but lost its edge to competitors like TSMC, Intel, and Samsung. Rapidus represents Japan’s comeback in chipmaking, and it comes as the US places increasing restrictions on advanced chipmaking equipment sales to China.
Microsoft recently announced plans to invest $2.9 billion to expand its cloud computing and ai infrastructure in Japan, making it the company’s largest investment in Asia’s second-largest economy. The tech giant will also open its first Microsoft Research Asia lab in Japan, with vice chairman and president Brad Smith among the attendees at the lunch with Prime Minister Kishida.
The Future of US-Japan Collaboration: ai, Semiconductors, and Clean Energy
As the two economies continue to strengthen their ties, they are focusing on areas such as ai, semiconductors, and clean energy. IBM is working with Rapidus in the semiconductor industry, with the Japanese chipmaker aiming to produce two-nanometer chips from April 2025. This collaboration is just one example of the opportunities for joint investment and innovation between Japan and the US.
Prime Minister Kishida emphasized the importance of these collaborations, stating that there would be more opportunities for partnerships between Japan and the US in various industries. In a historic shift away from aggressive monetary easing programs, Japan ended its era of negative interest rates with its first rate hike in 17 years last month. This move signals the country’s optimism for economic growth and a renewed focus on collaboration with its global partners, like the US.
In conclusion, the tech-driven partnership between Japan and the US is just one aspect of the broader collaborative efforts being made in response to the changing global landscape. As both countries look to meet the challenges of a new era, their focus on innovation and investment in emerging technology sectors is set to shape their economic futures and further strengthen their alliance.
