Japan is undertaking a significant industrial initiative to transform Hokkaido, traditionally an agricultural hub, into a global center for advanced semiconductor manufacturing, investing billions in a bid to revive its chip-making capabilities.

• The Japanese government has invested $12 billion in Rapidus, a new company backed by major corporations like Toyota and Sony, to build a cutting-edge chip factory in Chitose, Hokkaido.
• Rapidus, in partnership with IBM, has successfully produced prototype 2-nanometer (2nm) transistors, a feat previously achieved only by TSMC and Samsung.
• The plan is a high-stakes gamble for Japan, which saw its global semiconductor market share drop from over 50% decades ago to just over 10% today, with the goal of mass-producing 2nm chips by 2027.