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.
A worker delivers Amazon packages in San Francisco on Oct. 24, 2024.
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Amazon on Thursday announced Prime members can access new fixed pricing for treatment of conditions like erectile dysfunction and men’s hair loss, its latest effort to compete with other direct-to-consumer marketplaces such as Hims & Hers Health and Ro.
Shares of Hims & Hers fell as much as 17% on Thursday, on pace for its worst day.
Amazon said in a blog post that Prime members can see the cost of a telehealth visit and their desired treatment before they decide to proceed with care for five common issues. Patients can access treatment for anti-aging skin care starting at $10 a month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth at $43 a month, and men’s hair loss for $16 a month by using Amazon’s savings benefit Prime Rx at checkout.
Amazon acquired primary care provider One Medical for roughly $3.9 billion in July 2022, and Thursday’s announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49, and messaging visits cost $29 where available. Users can get treatment for more than 30 common conditions, including sinus infection and pink eye.
Medications filled through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients’ doors in standard Amazon packaging. Prime members will pay for the consultation and medication, but there are no additional fees, the blog post said.
Amazon has been trying to break into the lucrative health-care sector for years. The company launched its own online pharmacy in 2020 following its acquisition of PillPack in 2018. Amazon introduced, and later shuttered, a telehealth service called Amazon Care, as well as a line of health and wellness devices.
The company has also discontinued a secretive effort to develop an at-home fertility tracker, CNBC reported Wednesday.
Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online.
Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns.
Speaking to CNBC’s Karen Tso at the Web Summit tech conference in Lisbon, Portugal, on Wednesday, Manning said that one way to ensure online privacy could be “decentralized identification,” which gives individuals the ability to control their own data.
“Censorship is a dominant threat. I think that it is a question of who’s doing the censoring, and what the purpose is — and also censorship in the 21st century is more about whether or not you’re boosted through like an algorithm, and how the fine-tuning of that seems to work,” Manning said.
“I think that social media and the monopolies of social media have sort of gotten us used to the fact that certain things that drive engagement will be attractive,” she added.
“One of the ways that we can sort of countervail that is to go back to the more decentralized and distribute the internet of the early ’90s, but make that available to more people.”
Nym Technologies Chief Security Officer Chelsea Manning at a press conference held with Nym Technologies CEO Harry Halpin in the Media Village to present NymVPN during the second day of Web Summit on November 13, 2024 in Lisbon, Portugal.
Asked how tech companies could make money in such a scenario, Manning said there would have to be “a better social contract” put in place to determine how information is shared and accessed.
“One of the things about distributed or decentralized identification is that through encryption you’re able to sort of check the box yourself, instead of having to depend on the company to provide you with a check box or an accept here, you’re making that decision from a technical perspective,” Manning said.
‘No longer secrecy versus transparency’
Manning, who works as a security consultant at Nym Technologies, a company that specializes in online privacy and security, was convicted of espionage and other charges at a court-martial in 2013 for leaking a trove of secret military files to online media publisher WikiLeaks.
She was sentenced to 35 years in prison, but was later released in 2017, when former U.S. President Barack Obama commuted her sentence.
Asked to what extent the environment has changed for whistleblowers today, Manning said, “We’re at an interesting time because information is everywhere. We have more information than ever.”
She added, “Countries and governments no longer seem to invest the same amount of time and effort in hiding information and keeping secrets. What countries seem to be doing now is they seem to be spending more time and energy spreading misinformation and disinformation.”
Manning said the challenge for whistleblowers now is to sort through the information to understand what is verifiable and authentic.
“It’s no longer secrecy versus transparency,” she added.
LISBON, Portugal — British online lender Zopa is on track to double profits and increase annual revenue by more than a third this year amid bumper demand for its banking services, the company’s CEO told CNBC.
Zopa posted revenues of £222 million ($281.7 million) in 2023 and is expecting to cross the £300 million revenue milestone this year — that would mark a 35% annual jump.
The 2024 estimates are based on unaudited internal figures.
The firm also says it is on track to increase pre-tax profits twofold in 2024, after hitting £15.8 million last year.
Zopa, a regulated bank that is backed by Japanese giant SoftBank, has plans to venture into the world of current accounts next year as it looks to focus more on new products.
The company currently offers credit cards, personal loans and savings accounts that it offers through a mobile app — similar to other digital banks such as Monzo and Revolut which don’t operate physical branches.
“The business is doing really well. In 2024, we’ve hit or exceeded the plans across all metrics,” CEO Jaidev Janardana told CNBC in an interview Wednesday.
He said the strong performance is coming off the back of gradually improving sentiment in the U.K. economy, where Zopa operates exclusively.
Commenting on Britain’s macroeconomic conditions, Janardana said, “While it has been a rough few years, in terms of consumers, they have continued to feel the pain slightly less this year than last year.”
The market is “still tight,” he noted, adding that fintech offerings such as Zopa’s — which typically provide higher savings rates than high-street banks — become “more important” during such times.
“The proposition has become more relevant, and while it’s tight for customers, we have had to be much more constrained in terms of who we can lend to,” he said, adding that Zopa has still been able to grow despite that.
A big priority for the business going forward is product, Janardana said. The firm is developing a current account product which would allow users to spend and manage their money more easily, in a similar fashion to mainstream banking providers like HSBC and Barclays, as well as fintech upstarts such as Monzo.
“We believe that there is more that the consumer can have in the current account space,” Janardana said. “We expect that we will launch our current account with the general public sometime next year.”
Janardana said consumers can expect a “slick” experience from Zopa’s current account offering, including the ability to view and manage multiple account bank accounts from one interface and access to competitive savings rates.
IPO ‘not top of mind’
Zopa is one of many fintech companies that has been viewed as a potential IPO candidate. Around two years ago, the firm said that it was planning to go public, but later decided to put those plans on ice, as high interest rates battered technology stocks and the IPO market froze over in 2022.
Janardana said he doesn’t envision a public listing as an immediate priority, but noted he sees signs pointing toward a more favorable U.S. IPO market next year.
That should mean that Europe becomes more open to IPOs happening later in 2026, according to Janardana. He didn’t disclose where Zopa would end up going public.
“To be honest, it’s not the top of mind for me,” Janardana told CNBC. “I think we continue to be lucky to have supportive and long-term shareholders who support future growth as well.”
Last year, Zopa made two senior hires, appointing Peter Donlon, ex-chief technology officer at online card retailer Moonpig, as its own CTO. The firm also hired Kate Erb, a chartered accountant from KPMG, as its chief operating officer.
The company raised $300 million in a funding round led by Japanese tech investor SoftBank in 2021 and was last valued by investors at $1 billion.