Japanese PM Kishida sees more US chip collaboration ahead.

Japanese Prime Minister Fumio Kishida expressed his anticipation of enhanced collaboration with the United States in the realm of next-generation computer chips. This sentiment was conveyed on Tuesday, a day before a summit with US President Joe Biden, aimed at bolstering economic and defense ties to counterbalance China’s increasing influence.

Kishida’s remarks came amidst announcements of significant investments in Japan’s tech infrastructure, with US tech giant Microsoft revealing plans to inject $2.9 billion over two years into expanding its cloud and AI capabilities in Japan, marking its largest investment in the country over its 46 years of operation there.

During a roundtable discussion on critical and emerging technologies hosted by the US Chamber of Commerce in Washington, Kishida highlighted the collaboration between chip foundry venture Rapidus and a US company in the research and development of next-generation chips. He noted the potential for further collaborative opportunities between Japan and the United States in this domain.

Rapidus aims to commence mass production of advanced chips on Japan’s northern island of Hokkaido by 2027, in partnership with IBM and the Belgium-based research organization Imec. This initiative aligns with Japan’s efforts to revitalize its chip manufacturing base, as evidenced by the industry ministry’s recent approval of subsidies amounting to up to 590 billion yen ($3.9 billion) for the chip foundry venture.

While Kishida did not explicitly mention China in his address to the chamber, he emphasized the growing importance for the US and Japan to fortify their economies and drive global economic growth together. This emphasis on economic resilience and cooperation comes amid shared concerns about China’s intentions towards Taiwan, a key player in the global chip supply chain.

Given China’s claims over Taiwan and its potential use of force to assert control, the US and Japan are seeking to strengthen their control over chip supply chains, underscoring the strategic imperative of collaboration and resilience-building in the face of geopolitical tensions.