Link: Japan Tries to Reclaim Its Clout as a Global Tech Leader - The New York Times

China's success in boosting its economy through industrial policies has sparked a global race to nurture domestic industries. This phenomenon is reminiscent of the competitive response to Japan's economic rise 40 years ago, fueled by fears of losing technological and economic sovereignty.

Japan's attempt to reclaim its tech leadership, particularly in semiconductors, involves pooling over $27 billion into the sector. They aim to transition from being merely participants to leaders in the global semiconductor industry.

While partnering with international tech giants like IBM, Japan is focusing on advanced technologies like 2-nanometer chips. This collaborative approach marks a significant shift from its previous insular strategies.

Recent economic challenges and geopolitical tensions have pushed nations, including Japan, to ensure more resilient supply chains. Japan's renewed industrial policy emphasizes government-backed projects to secure critical industries and promote sustainable technology.

The government's current initiatives draw from newer economic theories advocating for targeted, mission-driven industrial strategies. These strategies aim to address modern challenges like digitalization and the green transition.

Despite skepticism about the feasibility of projects like the Rapidus semiconductor plant, proponents argue that without aggressive action, Japan risks falling behind. Thus, committing to these industrial policies is seen as essential for Japan's competitive survival in high-tech sectors.#

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