This is the second in a two-part series.
Read Part One
The semiconductor industry has become the foundation of modern civilization. From smartphones and automobiles to artificial intelligence, semiconductors power nearly every aspect of economic and strategic activity.
Yet the world has learned a difficult lesson in recent years: excessive dependence on a small number of production sites creates vulnerabilities that can threaten both economic growth and national security.
More Than Another Chipmaker
Against this backdrop, Japan’s Rapidus project should be understood not merely as a national industrial initiative, but as a contribution to the resilience and stability of the broader Indo-Pacific region, including ASEAN.
Today, advanced semiconductor manufacturing is highly concentrated. Taiwan plays an indispensable role in the production of leading-edge chips, while supply chains remain vulnerable to geopolitical tensions, natural disasters, and other disruptions.
The COVID-19 pandemic demonstrated how fragile these supply chains can be. Factory shutdowns and logistics bottlenecks affected industries worldwide, from automobiles in Thailand and Indonesia to electronics manufacturing in Malaysia and Vietnam.
For ASEAN economies, which have become increasingly integrated into global technology value chains, supply chain resilience is not an abstract concept. It is a practical necessity.
Founded in 2022 with the support of the Japanese government and leading Japanese corporations, Rapidus seeks to establish advanced semiconductor manufacturing capability in Japan.
Its goal is ambitious: the mass production of cutting-edge chips using 2-nanometer technology. Some observers have questioned whether Japan can succeed in a field where competition is intense and technological barriers are extraordinarily high.
Such skepticism is understandable but overlooks an important reality.
The objective of Rapidus is not simply to create another semiconductor company. Rather, it is to strengthen the diversity and resilience of the global semiconductor ecosystem. The world does not need fewer sources of advanced chip production; it needs more.
The analysis center inside Rapidus’ factory in Chitose, Hokkaido, where prototype semiconductors and other devices are analyzed, on April 11. (©Sankei/Ryotaro Fukuda)
Why ASEAN Has a Stake
For ASEAN nations, this development offers several opportunities.
First, a successful Rapidus would contribute to supply chain diversification. Diversification reduces risk. ASEAN economies have consistently advocated open, stable, and resilient supply chains.
Additional advanced manufacturing capacity in Japan supports precisely this objective. ASEAN companies will be able to design cutting-edge logic semiconductors and outsource their manufacturing to Rapidus. Rapidus will serve as a semiconductor manufacturing hub that ASEAN countries can access.
Second, Rapidus can deepen technological collaboration across the region. ASEAN countries already possess significant strengths in semiconductor assembly, testing, packaging, electronics manufacturing services, and component production. As advanced chip production expands, opportunities for regional cooperation will also grow.
Third, Rapidus may help accelerate the development of human capital. Semiconductor manufacturing requires highly skilled engineers, technicians, and researchers. Educational partnerships, workforce exchanges, and joint research initiatives between Japan and ASEAN can strengthen regional competitiveness for decades to come.
The rise of artificial intelligence further underscores the importance of this effort.
The AI Imperative
AI systems require enormous computing power, which in turn depends on increasingly advanced semiconductors. The future competitiveness of economies across Southeast Asia—from smart manufacturing in Vietnam to digital finance in Singapore and AI-driven healthcare in Thailand—will depend on reliable access to advanced computing infrastructure.
In this context, semiconductors are no longer simply industrial products. They are strategic infrastructure.
Critics often focus on the substantial public investment supporting Rapidus. This debate is legitimate. Governments must ensure accountability and effective use of taxpayer resources.
However, it is also important to recognize that nearly every major semiconductor-producing nation and region now views advanced chip manufacturing as a strategic priority. The United States, the European Union, South Korea, China, Taiwan, Singapore and India have all adopted policies to support domestic semiconductor capabilities.
Japan’s actions should therefore be understood within a broader international trend.
The real question is not whether governments should support semiconductor ecosystems, but how they can do so effectively while promoting innovation, competition, and international cooperation.
Partnership Over Competition
The future of the semiconductor industry should not be defined by fragmentation or zero-sum competition. Instead, it should be characterized by trusted partnerships among countries that share an interest in stability, prosperity, and technological advancement.
Japan and ASEAN have long demonstrated the value of such partnerships. Their economic ties are deep, their interests are increasingly aligned, and their cooperation continues to expand across sectors ranging from infrastructure and energy to digital technology.
A Vision for the Indo-Pacific and Beyond
Rapidus provides a new opportunity to strengthen these relationships.
For many years, I have been involved in discussions on industrial policy and have witnessed both Japan’s remarkable technological achievements and the painful consequences of losing industrial competitiveness.
The decline of Japan’s semiconductor industry was more than the story of one sector; it represented the gradual erosion of capabilities that had supported innovation, economic prosperity, and technological leadership across generations.
Rapidus represents an opportunity—not to recreate the past, but to build the future. Its success would demonstrate that democratic nations can still undertake ambitious long-term projects, combine public and private strengths, and deliver technological breakthroughs that benefit not only one country but an entire region.
My hope is that Rapidus will become more than a semiconductor manufacturer. I hope it will serve as a catalyst for deeper cooperation among Japan, ASEAN, and other trusted partners, fostering innovation, nurturing new engineers, and strengthening the resilience of the Indo-Pacific region.
A Project Worth Supporting
No one can guarantee success. Yet history has repeatedly shown that transformative achievements begin with the courage to pursue difficult goals.
I believe Rapidus deserves that opportunity—not simply because Japan needs it, but because a more resilient and diversified global semiconductor ecosystem will benefit all nations that value stability, innovation, and peaceful economic cooperation.
If successful, Rapidus will not simply represent Japan’s return to the frontier of semiconductor manufacturing. It will also stand as a symbol of a more resilient, diversified, and collaborative Indo-Pacific technology ecosystem. It will also serve as a key partnership linking Japan and ASEAN in the field of advanced semiconductors.
For ASEAN nations seeking sustainable growth in an increasingly digital world, that is a development worth supporting.
Author: Satoshi Nohara, Director-General, Commerce and Information Policy Bureau of the Ministry of Economy, Trade and Industry
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