Japan was once the leading country in the chip industry, but its market share has fallen from 50% to 10%*, so it would like to return to its former numbers. The US is encouraging countries to work together to counter China's progress in this regard. Micron Technology Inc plans to invest about 500 billion yen (US$3.70 billion) in advanced extreme ultraviolet (EUV) technology. This project will focus on complex screen processing networks and will also be supported by the Japanese government. Among other manufacturers, Micron will be the first to implement this technology in its production process. Japanese Prime Minister Fumio Kishida plans to meet with senior executives from Samsung Electronic, TSMC and Micron. As Japan looks to revive its industry, Intel is exploring the possibility of opening a development facility there.
The European Union has passed a law on chip manufacturing that would see it double its share in this technology area from 10% to 20%. It plans to focus not only on making older chips, but also to step up research into more advanced models. EU industry chief Thierry Breton emphasised the importance of assertive policies that would directly support manufacturing throughout the supply chain. The law has prompted leading chipmakers such as Intel, Infineon and also TSMC to consider investing in Germany. Europe will thus be a more hospitable ground for this segment and it is possible that, in time, it will attract the right investors.
Nvidia's stock performance over the past five years (Source: Google) *
Shares of Nvidia Corp (up 5.0%), Advanced Micro Devices (up 4.0%) and Micron Technology (up 4.1%) have responded with gains, as investors have linked the AI wave to new opportunities in Japan. This area of the market surged after being affected by positive news of the chip industry's support.* All of this took place ahead of the G7 summit, where this area will be a hot topic, along with artificial intelligence, China's push policy, and the acquisition of new technologies.
AMD's stock performance over the past five years (Source: Google) *
Micron's stock performance over the past five years (Source: Google) *
* Past performance is no guarantee of future results
