Key facts
- Japan has established the sovereign AI consortium Noestra, involving 44 tech companies, to enhance its AI capabilities.
- Nvidia CEO Jensen Huang attended the launch, pledging chip support for Japan's physical AI focus.
- Taiwan Semiconductor Manufacturing Co. will increase chip production prices by up to 10% next year.
- China is considering export controls on AI and semiconductor technologies amid U.S. rivalry.
- Taiwan is accelerating its space ambitions with a new satellite launch planned this year.
Japan is making significant moves in artificial intelligence and space technology, while Taiwan Semiconductor Manufacturing Co. (TSMC) prepares for price increases and China considers new export controls.
Nvidia CEO Jensen Huang visited Tokyo to celebrate a long-standing partnership with Sega and to attend the launch of Japan's sovereign AI consortium, Noestra. This venture, involving 44 Japanese tech companies including Sony, NEC, Honda, and SoftBank, aims to bolster Japan's AI competitiveness, particularly in physical AI applications controlled by robots and machines. Nvidia will supply the necessary chips for this initiative. Huang praised Japan's industrial expertise and was met by Minister of Economy, Trade and Industry Ryosei Akazawa.
Prime Minister Sanae Takaichi's government is pursuing an aggressive fiscal spending plan, targeting 370 trillion yen ($2.3 trillion) in public-private investment across key sectors like AI, chips, and defense by 2040. However, the yen has weakened significantly against the dollar, partly due to Middle East tensions and skepticism from financial markets regarding these ambitious investment plans.
In the semiconductor industry, TSMC, the world's largest contract chipmaker, plans to raise prices for both advanced and mature chip production by up to 10% next year. This decision comes amid rising costs for labor, materials, and manufacturing, as well as strong demand driven by AI computing. Other chipmakers like Intel and AMD have already implemented price hikes this year. Meanwhile, Wistron, a Taiwanese peer, opened a new manufacturing facility in Texas, partly to support Nvidia's supply chain and U.S. efforts to onshore manufacturing.
Amid escalating U.S.-China rivalry in AI, China is reportedly considering tighter export controls on AI and semiconductor technologies. Regulators are consulting with domestic AI and chip firms to prevent Western acquisition of key technologies and data. China's AI capabilities are advancing, with its Moonshot lab releasing a model that rivals top U.S. offerings. Potential restrictions could also affect overseas chipmakers producing semiconductors based on Chinese designs.
Separately, Taiwan is pursuing its own space ambitions despite a smaller budget compared to major global powers. The Taiwan Space Agency plans to accelerate its satellite launches, with another Formosat-8 series mission scheduled for this year, aiming to enhance national security.