Japan is looking to revitalize its semiconductor industry. The Japanese government has unlocked billions of dollars in subsidies for its domestic chip sector.
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Japan has announced a new plan to revitalize the country’s semiconductor and artificial intelligence industries as it works to regain its chip leadership.
The proposal will provide support worth 10 trillion yen ($65 billion) or more by fiscal 2030, Prime Minister Shigeru Ishiba said earlier this week.
“We will formulate a new assistance framework to attract more than 50 trillion yen in public and private investment over the next 10 years,” Ishiba said, adding it would be part of broader “revitalization” efforts in Japan.
The plan will be part of a comprehensive economic package to be finalized in November and will be financed through subsidies, government institution investments and debt guarantees, according to local media.
The move comes amid broader efforts by Japan to bolster and diversify its semiconductor supply chain, with the government aiming to triple sales of domestically produced chips to more than 15 trillion yen by 2030.
Domestic chip hero?
One likely beneficiary of the funding announced Monday will be Japan-based Rapidus, a state-backed chip venture at the heart of the country’s chip revitalization efforts.
Founded in 2022 by the Japanese government, Rapidus has backing from a host of Japanese firms— including Toyota Motor and the Sony Group — and is collaborating with U.S. tech giant IBM.
The company has already received over $2 billion in government support as it aims to mass-produce cutting-edge 2-nanometer logic chips by 2027.
Logic chips are used to process information and complete tasks within electronic devices. The most advanced logic chips are used in technologies such as artificial intelligence, quantum computing and machine learning.
Rapidus chairman Tetsuro Higashi has reportedly called the company Japan’s “last opportunity” to regain a leading semiconductor position on the global stage as it looks to catch up with leaders like Taiwan and South Korea.
In the 1980s, Japan was the world’s dominant chip player and occupied more than half of the global semiconductor market.
However, the country began losing its leading edge with the emergence of foreign competitors like Taiwan Semiconductor Manufacturing Co., now the world’s dominant contract chip manufacturer, and South Korea’s Samsung.
Both Samsung and TSMC have laid out plans to begin commercial production of 2-nanometer chips by 2025.
Meanwhile, the U.S. has become a key player in chip design, with companies like Intel and Micron, while the Netherlands makes the world’s most advanced chip-making equipment through its company ASML.
Feasibility
Though it has lost its leadership in semiconductor production and manufacturing, Japan remains a leader in certain semiconductor materials and equipment, Michael Yang, senior director of semiconductors at analyst and consulting firm Omdia, told CNBC.
Through its chip subsidies, which have mostly been geared toward increasing manufacturing capacity, the country should be able to expand into other aspects of the supply and enhance its position, Yang added.
Still, regaining the chip market will be an uphill battle for Japan and will require Rapidus to find a “shortcut” in chip design and production to reach the level of advancement of leading semiconductor companies, said Brady Wang, semiconductor analyst at Counterpoint Research.
Rapidus representatives have said that the architecture of the 2-nanometer chip is different from that of 3-nanometer ones, making mass production of the former a “blank-slate challenge for all players,” and presenting a prime opportunity to break into the market.
However, in this endeavor, “subsidies are a must-have, but cannot guarantee their success,” Wang said, adding that it took TSMC over a decade to catch up to global chip firms and build relationships with customers.
“Subsidies are only a basic requirement for entering the semiconductor industry, but success requires more supportive measures, such as talent, technology, and strategic planning,” said Ken Kuo, senior research vice president at tech market intelligence firm TrendForce.
Learning from the best
In addition to trying to establish a dominant chip producer in Japan, subsidies have also been aimed at attracting the global leaders that once took its chip business.
With aid from the Japanese government, chipmakers such as TSMC, Samsung Electronics, and Intel Corp have agreed to invest billions of dollars into Japan.
Such companies are leaders in producing memory chips used to store data, which are essential in data centers used for AI and cloud computing.
TSMC has already announced plans to build a second fabrication plant in Japan ahead of the completion of its first.
According to Counterpoint’s Wang, attracting such companies entering Japan can help the country quickly boost vertical integration across the supply chain and more quickly build up its semiconductor ecosystem.
Japan has also signed collaboration agreements — with allies such as the U.S., the U.K., Taiwan and a number of EU countries — that are aimed at advancing research and development involving next-generation semiconductors.
The lawsuit, filed by Musk’s AI startup xAI and its social network business X, alleges Apple and OpenAI have “colluded” to maintain monopolies in the smartphone and generative AI markets.
Musk’s xAI acquired X in March in an all-stock transaction.
It accuses Apple of deprioritizing so-called “super apps” and generative AI chatbot competitors, such as xAI’s Grok, in its App Store rankings, while favoring OpenAI by integrating its ChatGPT chatbot into Apple products.
“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” according to the complaint, which was filed in U.S. District Court for the Northern District of Texas.
An OpenAI spokesperson said in a statement: “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.”
Representatives from Apple didn’t immediately respond to a request for comment.
The Tesla CEO launched xAI in 2023 in a bid to compete with OpenAI and other leading chatbot makers.
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Musk earlier this month threatened to sue Apple for “an unequivocal antitrust violation,” saying in a post on X that the company “is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
After Musk threatened to sue Apple, OpenAI CEO Sam Altman responded: “This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn’t like.”
An Apple spokesperson previously said its App Store was designed to be “fair and free of bias,” and that the company features “thousands of apps” using a variety of signals.
Apple last year partnered with OpenAI to integrate ChatGPT into iPhone, iPad, Mac laptop and desktop products.
Several users replied to Musk’s post on X via its Community Notes feature saying that rival chatbot apps such as DeepSeek and Perplexity were ranked No. 1 on the App Store after Apple and OpenAI announced their partnership.
The lawsuit is the latest twist in an ongoing clash between Musk and Altman. Musk co-founded OpenAI alongside Altman in 2015, before leaving the startup in 2018 due to disagreements over OpenAI’s direction.
Musk sued OpenAI and Altman last year, accusing them of breach of contract by putting commercial interests ahead of its original mission to develop AI “for the benefit of humanity broadly.”
In a counter claim, OpenAI has alleged that Musk and xAI engaged in “harassment” through litigation, attacks on social media and in the press, and through a “sham bid” to buy the ChatGPT-maker for $97.4 billion designed to harm the company’s business relationships.
Jensen Huang, CEO of Nvidia, is seen on stage next to a small robot during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, on June 11, 2025.
Gonzalo Fuentes | Reuters
Nvidia announced Monday that its latest robotics chip module, the Jetson AGX Thor, is now on sale for $3,499 as a developer kit.
The company calls the chip a “robot brain.” The first kits ship next month, Nvidia said last week, and the chips will allow customers to create robots.
After a company uses the developer kit to prototype their robot, Nvidia will sell Thor T5000 modules that can be installed in production-ready robots. If a company needs more than 1,000 Thor chips, Nvidia will charge $2,999 per module.
CEO Jensen Huang has said robotics is the company’s largest growth opportunity outside of artificial intelligence, which has led to the Nvidia’s overall sales more than tripling in the past two years.
“We do not build robots, we do not build cars, but we enable the whole industry with our infrastructure computers and the associated software,” said Deepu Talla, Nvidia’s vice president of robotics and edge AI, on a call with reporters Friday.
The Jetson Thor chips are based on a Blackwell graphics processor, which is Nvidia’s current generation of technology used in its AI chips, as well as its chips for computer games.
Nvidia said that its Jetson Thor chips are 7.5 times faster than its previous generation. That allows them to run generative AI models, including large language models and visual models that can interpret the world around them, which is essential for humanoid robots, Nvidia said. The Jetson Thor chips are equipped with 128GB of memory, which is essential for big AI models.
Companies including Agility Robotics, Amazon, Meta and Boston Dynamics are using its Jetson chips, Nvidia said. Nvidia has also invested in robotics companies such as Field AI.
However, robotics remains a small business for Nvidia, accounting for about 1% of the company’s total revenue, despite the fact that it has launched several new robot chips since 2014. But it’s growing fast.
Nvidia recently combined its business units to group its automotive and robotics divisions into the same line item. That unit reported $567 million in quarterly sales in May, which represented a 72% increase on an annual basis.
The company said its Jetson Thor chips can be used for self-driving cars as well, especially from Chinese brands. Nvidia calls its car chips Drive AGX, and while they are similar to its robotics chips, they run an operating system called Drive OS that’s been tuned for automotive purposes.
Intel’s CEO Lip-Bu Tan speaks at the company’s Annual Manufacturing Technology Conference in San Jose, California, U.S. April 29, 2025.
Laure Andrillon | Reuters
Intel on Monday warned of “adverse reactions” from investors, employees and others to the Trump administration taking a 10% stake in the company, in a filing citing risks involved with the deal.
A key concern area is international sales, with 76% of Intel’s revenue in its last fiscal year coming from outside the U.S., according to the filing with the Securities and Exchange Commission. The company had $53.1 billion in revenue for fiscal year 2024, down 2% from the year prior.
For Intel’s international customers, the company is now directly tied to President Donald Trump‘s ever-shifting tariff and trade policies.
“There could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors,” the company wrote in the filing. “There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company.”
Intel also said that the potential for a changing political landscape in Washington could challenge or void the deal and create risks to current and future shareholders.
The deal, which was announced Friday, gives the Department of Commerce up to 433.3 million shares of the company, which is dilutive to existing shareholders. The purchase of shares is being funded largely by money already awarded to Intel under President Joe Biden‘s CHIPS Act.
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Intel has already received $2.2 billion from the program and is set for another $5.7 billion. A separate federal program awarded $3.2 billion, for a total of $11.1 billion, according to a release.
Trump called the agreement “a great Deal for America” and said the building of advanced chips “is fundamental to the future of our Nation.”
Shares of Intel rallied as momentum built toward a deal in August, with the stock up about 25%.
The agreement requires the government to vote with Intel’s board of directors. In the Monday filing, the company noted that the government stake “reduces the voting and other governance rights of stockholders and may limit potential future transactions that may be beneficial to stockholders.”
Furthermore, the company acknowledged in the filing that it has not completed an analysis of all “financial, tax and accounting implications.”
Intel’s tumultuous fiscal year 2024 included the exit of CEO Pat Gelsinger in December after a four-year tenure during which the stock price tanked and the company lost ground to rivals in the artificial intelligence boom.