Japan ramps up tech ambitions with $65bn for AI, chips

Japan is readying a $65-billion push in microchips and artificial intelligence (AI) aimed at reclaiming its status as a global tech leader and meeting the urgent challenges of its ageing, shrinking population. The 10-trillion-yen package, which lawmakers could approve this week, is also seen as preparation for an uncertain world as fears grow of a potential Chinese invasion of chip powerhouse Taiwan. But analysts warn that question marks remain over worker shortages and whether Japan can generate enough electricity for energy-hungry AI data centres. After dominating in tech hardware during the 1980s, “Japan had a quite a long period of almost just sitting back and observing a lot of this innovation, particularly when it comes to artificial intelligence”, said Kelly Forbes, president of the AI Asia Pacific Institute.