Nvidia is set to significantly expand its network of chip manufacturing facilities in Japan to address the growing demand for artificial intelligence (AI)

The headquarters of Nvidia, a technology company, in Santa Clara, California, displays its logo in this image taken on February 11, 2015. The photograph is credited to REUTERS/Robert Galbraith.

Nvidia’s Expansion Plans in Japan

Nvidia’s CEO, Jensen Huang, announced plans to establish a series of semiconductor facilities in Japan, collaborating with local companies to address the growing need for graphics chips that power artificial intelligence (AI). The graphics chips developed by Nvidia are widely recognized for efficiently processing large volumes of data through parallel calculations, making them a preferred choice for training AI services.

Confidence in Japan’s Capabilities

In a meeting with Japanese Economy Minister Yasutoshi Nishimura, Huang expressed confidence in Japan’s technical expertise and industrial capabilities to independently develop artificial intelligence solutions. He emphasized Nvidia’s commitment to supporting Japan’s AI ecosystem by not only building semiconductor plants but also fostering the growth of AI startups in the country. This initiative aligns with Prime Minister Fumio Kishida’s administration, which has pledged substantial financial support to Taiwan Semiconductor Manufacturing Co and the local startup Rapidus.

“Japan has all of the technical expertise, the industrial capability to create your own artificial intelligence right here in Japan,” stated Huang during the introductory remarks in a meeting with Japanese Economy Minister Yasutoshi Nishimura on Tuesday. He emphasized that Nvidia is committed to assisting Japan in nurturing more AI start-ups.

Nvidia’s graphics chips, known for processing substantial data through parallel calculations, have become the preferred choice for training AI services. The demand for these chips has driven prices higher as companies and governments strive to enhance their AI capabilities.

Tokyo’s Efforts to Attract Semiconductor Investment

In an effort to attract investment in the production of cutting-edge semiconductors crucial to future technologies, Tokyo is actively seeking support. Prime Minister Fumio Kishida’s administration has allocated billions of dollars to back Taiwan Semiconductor Manufacturing Co, the leading company in advanced chip production, as well as Rapidus, a local start-up aspiring to compete in high-end chip production.

During a meeting with Kishida earlier in the week, Huang conveyed that there is significant demand for Nvidia GPUs, but he assured the Japanese premier that efforts would be made to prioritize Japan, as reported by local news sources.