24

Japan’s Hokkaido Island is set for a transformation in scenery as the Japanese government is looking to revive the country’s chip-making capabilities. Other than being known for its flowers, the island is also home to fresh seafood and quality-dairy products.

Using Hokkaido as a central location, the island will have a new, advance ecosystem, leveraging on facilities like the upcoming logistics centre, set to be built in Chitose. Research and training centres make it possible to train engineers to be experts in the field. Grants and funding will also be available to researchers and engineers Hokkaido possesses airport connectivity and is within proximity to domestic and international supply chains.  

The Japanese government is expected to invest trillions of yen with the help of a Tokyo-based government-supported semiconductor manufacturer. Thanks to this, Japan is poised to have its own ‘Silicon Valley’ or rather Hokkaido Valley. The chipmaker said it selected Hokkaido for its excellent water and electricity infrastructure, other than its natural beauty.

In line with the Zero Carbon Hokkaido initiative, the production of semiconductors will involve the use of renewable energy resources such as geothermal, wind, solar and hydro, meeting the sustainable development goals (SDGs) mooted by the UN as well as for sustainable supply chains.  Hokkaido’s cooler climate also means factories will lower the use of energy, making bills more cost-efficient and the environment more sustainable.

However, this also poses a challenge as South Korean and Taiwanese companies have forged relationships with other giants, making it harder for Japan to look for customers.

In November 2024, Tokyo uncovered a stimulus package worth USD65billion for its artificial intelligence (AI) and semiconductors sectors that could further the partnering company’s expansion plans.

So far, the Japanese government has been making aged care one of its priorities, so there is a reduction in the exploration of this area. However, the government believes that the timing is right, with local electronics companies expanding presence in Hokkaido.

This will indirectly reduce trade wars and tensions, with less need for relying on suppliers from outside Japan. After all, Japan quickly picks up and learns from mistakes and are constantly thinking of new ideas and producing usually smart, practical items.

By 2027, you can expect mass production of 2-nanometre semiconductors – welcome to Hokkaido Valley, look beyond the typical island life.