Japan Aims to Develop Post-5G Semiconductors

Japan is set to invest almost half a billion dollars to ramp up domestic semiconductor industry to keep its position as a major global player in technology. Japan’s Ministry of Economy, Trade and Industry announced that the new company, called Rapidus, will focus on the development of next generation “post-5G” semiconductors. Those advanced chips will be used for smart gadgets and smart cities with high-speed sensors and transmission.

The ministry also said that the 70-billion-yen ($490-million) effort will involve working closely with the United States to bring together “the best and the brightest” from both nations.

Japan has long been one of the powerhouses of global technology, including in chipmaking. But the ministry accepted in its statement that Japan had fallen ten years behind the global competition, including the U.S., Taiwan, South Korea and some European nations.

Now is “Japan’s last chance” to remain a player in the sector, it said.

Japan’s dependence on imports for semiconductors have come to surface after the recent Covid lockdowns in China. Political tension between Washington and Beijing, which could jeopardize supplies from China, has also been a cause for concern.

The ministry said mass production of the chips is expected to begin in late 2020s.

Those taking part in Rapidus are automaker Toyota, electronics makers Sony and NEC, along with SoftBank, Nippon Telegraph and Telephone, Denso and Kioxia.

Each company is investing 1 billion yen ($7 million) in addition to the Japanese government subsidies. An eighth company, MUFG Bank, is investing 300 million yen ($2 million) in the new company.

Next-generation chips are expected to be crucial for artificial intelligence and automated driving systems. Investing in such technology will lead to jobs and growth, the Japanese government said.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Italy’s Saipem Set to Restart Mozambique’s First Onshore LNG Plant

Italian energy services group Saipem agreed to restart Mozambique’s first onshore LNG project for France’s TotalEnergies in July, company CEO Puliti said on Tuesday. The project, which would be the first onshore development of a LNG plant in the African country, was frozen in 2021 due to security issues. The contract has a value of €3.5 billion for the Italian group. “We expect to gradually restart the (Mozambique) project, according to the information received by our clients, starting from July this year,” Puliti said.

U.S. EV Maker Rivian Shelves Europe Manufacturing Plans with Mercedes

U.S. electric vehicle (EV) manufacturer Rivian said it was pausing its joint venture plans with Mercedes-Benz to establish a European site to make electric vans, just three months after the two companies announced their partnership. Rivian said it would focus on its U.S. operations, as it tries to become cash flow positive in the market. 

Par Pacific Becomes First U.S. Refiner to Suspend Russian Oil Imports

Par Pacific Holdings has become the first U.S. refiner to suspend Russian oil imports following waves of sanctions on Moscow’s invasion of Ukraine. The company said it was suspending Russian crude imports for its Hawaii refinery.  

Stay informed

error: This content is protected !!