Japan

Intelligence for Better Decision Making

Rapidus Advances Next-Generation 2-Nanometer Semiconductor Production
April 3, 2025 | Indirect Indicator

Rapidus spearheads the development of next-generation semiconductors, setting the stage for advanced chip manufacturing techniques.

**Rapidus, a state-backed Japanese chip venture, has entered the pilot manufacturing phase for next-generation semiconductors with a circuit line width of 2 nanometers.**
The company has initiated test production and plans to optimize manufacturing yields and ensure chip quality reliability before launching mass production by 2027. Using extreme ultraviolet lithography with ASML Holding NV equipment, Rapidus has produced an initial batch of test chips and plans to complete prototype production by mid-July. Its facility in Chitose, Hokkaido, advances steadily toward full operational capacity, designed to serve both domestic and international customers.

**The initiative secures a significant government financial commitment exceeding 1.8 trillion yen as part of a national strategy to strengthen domestic semiconductor supply chains and reduce dependence on suppliers from Taiwan, the United States, and South Korea.**
Additional investments for the current fiscal year amount to up to 802.5 billion yen, supplementing an earlier pledge of 1 trillion yen. The overall project, undertaken in partnership with IBM Corp, requires a total investment of around 5 trillion yen to achieve mass production capability.

**Recognizing the inherent technical challenges in developing and mass-producing 2-nanometer chips, Chief Executive Officer Atsuyoshi Koike stresses the necessity for ongoing experimentation and mastery of sophisticated ASML machinery.**
Although the timeline targets mass production by 2027, some market analysts question whether Rapidus can swiftly overcome these technological hurdles. This development reflects Japan's strategic pursuit of technological leadership in advanced semiconductor manufacturing amid intensifying global competition from industry leaders such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics.
Impending US Tariffs Stir Global Market Uncertainty
April 3, 2025 | Indirect Indicator

US tariffs on Japan

**The US government is preparing to enforce new tariff measures that are drawing significant attention from global markets.**
On April 1, White House spokesman Levitt confirmed that reciprocal tariffs would be imposed swiftly, with additional details to be provided on April 2. Reports indicate that the administration is considering a universal 20% tariff on most imports from all countries, a proposal that has raised concerns among international trading partners about its potential to affect global trade and economic conditions.

**Investor sentiment has grown cautious as the announcement approaches.**
On April 1, the Dow Jones Industrial Average closed at $41,989.96 following a slight decline, with market participants holding off on significant buying until more information is available. Meanwhile, the Nasdaq Composite Index rebounded after a series of declines, although some individual stocks experienced noticeable fluctuations as investors adjusted their positions in anticipation of possible changes to trade policy.

**Additional details are expected during President Trump's address on April 2 under the title "Make America Wealthy Again," where the specifics of the tariff policy will likely be disclosed.**
This upcoming announcement and the potential tariff measures remain central to market behavior and the evolving dynamics of international economic relationships.

Monitored Intelligence for Japan - April 3, 2025


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中国における生成AI規制

China's Regulation of Generative AI

TMI Associates | Local Language | AcademicThink | April 3, 2025 | Regulation

In recent years, the Chinese government has prioritized the development of AI technology, viewing it as crucial for advancing the digital economy. The "New Generation Artificial Intelligence Development Plan," issued in July 2017, aims for significant advancements in AI theory and application by 2025 and for China to become a global leader in AI by 2030. Major Chinese companies like Baidu, Alibaba, Tencent, and ByteDance are enhancing their global competitiveness, particularly in generative AI and natural language processing. Notably, the large-scale language model Deepseek has gained attention for its potential applications in various sectors.

With the rise of generative AI, concerns over misinformation, data privacy, and algorithm transparency have prompted the Chinese government to propose stricter regulations. The "Interim Measures on the Management of Generative AI Services," enforced since August 15, 2023, define generative AI services and mandate regulations applicable to both service providers and users, ensuring that non-Chinese companies must also comply when offering services to users in China. The regulations emphasize ethical service provision and adherence to social values, requiring measures to prevent discrimination and to maintain high data quality standards.

The obligations for generative AI service providers include responsible training data handling, compliance with personal data protection laws, and clear contract stipulations with users. Providers must implement measures to prevent harm to minors, disclose AI-generated content clearly, and establish mechanisms for reporting illegal activities. Services with the potential to influence public opinion must undergo security assessments and notifications, with penalties for violations outlined under existing cybersecurity and data protection laws. The regulatory framework reflects a comprehensive approach to harness AI's potential while mitigating associated risks.

Japan PM vows to win trust amid scandal, ensures inflation relief

Kyodo News | English | News | April 3, 2025 | Political Scandal or Corruption

Japanese Prime Minister Shigeru Ishiba has vowed to restore public trust in the ruling Liberal Democratic Party (LDP) amid a scandal involving the handout of vouchers to new party members. With upcoming elections for the House of Councillors this summer, Ishiba also committed to implementing inflation-relief measures effectively, following the passage of a 115.20 trillion yen ($770 billion) budget for the new fiscal year. He acknowledged the impact of rising prices on wage growth and expressed reluctance to reduce the consumption tax on food.

Facing declining public support, Ishiba admitted to his mistakes regarding the voucher scandal, which has drawn criticism alongside an existing slush fund controversy within the party. He emphasized his intention to proactively work on securing trust from the public, referring to his past image of being unsocial. He defended the voucher initiative as a gesture of appreciation to new party members elected during the previous general election, which saw the LDP lose its lower house majority.

The prime minister highlighted the necessity for detailed parliamentary discussions to gain support from opposition parties, marking a significant challenge as the coalition gears up for the House of Councillors election. In light of looming U.S. tariffs on auto imports starting April 3, Ishiba asserted his administration's efforts to seek exemptions for Japanese exports, underlining Japan’s significant investment stake in the U.S. market. He mentioned that the government would collect data from numerous consultation centers nationwide to assess the potential economic impact of the tariffs and assist affected businesses.

Japan launches new disease control body for pandemics

The Mainichi | English | News | April 3, 2025 | Epidemics and Pandemics

The Japan Institute for Health Security has been established to provide advisory support to the government during major outbreaks of infectious diseases, launching amid criticism regarding the COVID-19 pandemic response. This new organization merges functions from the National Institute of Infectious Diseases and the National Center for Global Health and Medicine, aiming for a more integrated approach to health security.

This consolidation is designed to improve responses at all stages of disease outbreaks, encompassing data collection, health care provision, and communication. The initiative stems from the lessons learned during the COVID-19 crisis, which identified the need for quicker decision-making, better coordination among governmental bodies and local administrations, and improved risk communication strategies.

Additionally, the institute's crisis management headquarters will facilitate information sharing between experts and government officials. It will operate as the command center for information gathering and risk assessments concerning infectious diseases. The inclusion of the secretariat of Disaster Medical Assistance Teams within the organization aims to strengthen the response capabilities during health emergencies.

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