\n
Microsoft plans to offer AI training to three million people in Japan – Copyright AFP Philip FONG<\/small><\/em><\/p>\nHiroshi Hiyama and Etienne Balmer<\/em><\/p>\nMassive overseas and domestic investments offer Japan a chance to reclaim its tech crown, but to become a convincing alternative to China the country must embrace rapid innovation, experts say.<\/p>\n
US tech giants are pumping billions of dollars into artificial intelligence, cybersecurity and chip production in Japan, which dominated the hardware industry in the 1980s.<\/p>\n
Google launched a regional cyber defence hub in the country last month, and Amazon Web Services is spending $14 billion to expand Japanese cloud infrastructure.<\/p>\n
And in the latest move, this week saw Microsoft, a partner of ChatGPT-maker OpenAI, pledge $2.9 billion to boost the nation\u2019s AI prowess.<\/p>\n
\u201cGeopolitical tensions have made Japan a more attractive and stable partner compared to China,\u201d said Khos-Erdene Baatarkhuu, CEO of fintech company AND Global.<\/p>\n
\u201cJapan\u2019s tech sector, once a leader, lost ground due to a slower response to digital and mobile trends\u201d compared with neighbours such as South Korea, he told AFP.<\/p>\n
But \u201cnow, with supportive government policies, resilient start-ups, and a potentially shifting global tech scene, Japan has an opportunity to regain its tech edge\u201d.<\/p>\n
It\u2019s not there yet, however. Japan was ranked a lowly 32nd in the latest global classification of digital competitiveness by Swiss management school IMD.<\/p>\n
And only seven Japanese firms appear among more than 1,200 tech \u201cunicorns\u201d \u2014 start-ups worth more than $1 billion \u2014 listed by CB Insights.<\/p>\n
A \u201cperfection-seeking approach\u201d and preference for \u201cstability and gradual improvement\u201d among businesses is partly to blame, Khos-Erdene said.<\/p>\n
\u201cThe traditional corporate culture in Japan tends to be risk-averse and hierarchical, which can stifle the rapid innovation typically seen in the software industry.\u201d<\/p>\n
\u2013 Microchip \u2018revival\u2019 \u2013<\/p>\n
Masayoshi Son, CEO of Japanese tech investment vehicle SoftBank Group, has warned the country could be left a gawping \u201cgoldfish\u201d if it ignores AI.<\/p>\n
\u201cWake up Japan!\u201d he said at a corporate event in October. \u201cI want to be on the side of evolution.\u201d<\/p>\n
Son and tech titans including Apple boss Tim Cook and Amazon founder Jeff Bezos joined Japan\u2019s Prime Minister Fumio Kishida and US President Joe Biden at a Washington dinner on Wednesday.<\/p>\n
At a summit that day, Kishida and Biden had vowed to strengthen \u201cour shared role as global leaders in the development and protection of next-generation critical and emerging technologies\u201d.<\/p>\n
They also agreed to work with \u201clike-minded countries to strengthen global semiconductor supply chains\u201d in a joint statement.<\/p>\n
Semiconductors, which power everything from mobile phones to cars, have become a key battleground in recent years.<\/p>\n
The United States and some European countries have blocked exports of high-tech chip technology to China over fears of military use.<\/p>\n
Meanwhile, Taiwanese chip behemoth TSMC is facing pressure to diversify its production from customers and governments worried about the possibility of China invading Taiwan.<\/p>\n
TSMC opened a new $8.6 billion chip factory in southern Japan in February, and is planning a second, $20-billion facility for more advanced chips.<\/p>\n
On a visit to the TSMC plant this month, Kishida said he \u201cfelt first-hand the revival of our country\u2019s semiconductor industry\u201d.<\/p>\n
Japan has spent 3.9 trillion yen ($25 billion) in the past three years on chip-related subsidies \u2014 a larger portion of gross domestic product than the United States or Germany.<\/p>\n
Japanese firms including Sony and Toyota are also collaborating with US giant IBM on a semiconductor project called Rapidus, aiming to mass-produce two-nanometre logic chips in Japan from 2027.<\/p>\n
\u2013 \u2018Crossroads\u2019 \u2013<\/p>\n
\u201cThis is a great time to invest in Japan\u201d with the yen\u2019s value at a 34-year low, said Hideaki Yokota, vice president of the specialist IT think-tank MM Research Institute.<\/p>\n
Tech firms hope the country can become their \u201cbest partner in Asia\u201d while its workforce boasts many highly educated engineers ready to be snapped up, he told AFP.<\/p>\n
Established Japanese businesses, especially in the auto and household appliance sectors, provide real-world opportunities to make AI profitable, he said.<\/p>\n
But Khos-Erdene\u00a0warned that Japan should not rely on its legacy as a manufacturer, given its low labour productivity and shrinking workforce.<\/p>\n
\u201cAs CEO of a tech company, I see Japan at a crossroads,\u201d he said, with the question not if but how quickly the country can become a \u201cproducer, not just a consumer, of these transformative technologies\u201d.<\/p>\n
Microsoft plans to offer AI training to three million of Japan\u2019s population of 125 million.<\/p>\n
Japanese and American universities are also teaming up on new technology research programmes funded by global companies such as Nvidia and Arm.<\/p>\n
\u201cOverall, Japan\u2019s commitment to AI holds tremendous potential for economic revitalisation,\u201d Khos-Erdene said.<\/p>\n
\u201cBy fostering collaboration, retaining top talent, and learning from successful models like the US and China, Japan can bridge the AI gap and re-establish itself as a major force in the global tech landscape.\u201d<\/p>\n<\/p><\/div>\n
Japan seeks to reclaim tech edge with overseas help
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#Japan #seeks #reclaim #tech #edge #overseas<\/p>\n","protected":false},"excerpt":{"rendered":"
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