Nvidia expands AI chip production to Japan while China redirects semiconductor manufacturing to Hong Kong

Leading graphics processing unit (GPU) manufacturer, Nvidia, based in Santa Clara, California, has revealed plans to build a system of semiconductor factories in Japan. The decision was made in response to the growing need for GPUs, especially in the artificial intelligence (AI) space. 

According to regional news reports, Nvidia CEO Jensen Huang met with Japanese Prime Minister Fumio Kishida earlier this week and assured him that Nvidia would give Japan priority to meet the high demand for its GPUs.

Japan is actively looking for ways to invest in the manufacturing of advanced semiconductors, which are essential to the development of new technologies. According to reports, Kishida's administration has pledged billions of dollars to help Taiwan Semiconductor Manufacturing Co. (TSMC, Nvidia’s competitor), which leads the industry in producing advanced chips, and Rapidus, a local startup that wants to compete in the production of high-end chips.

Meanwhile, it's becoming clear that, in response to Hong Kong's reindustrialization efforts, Chinese auto chip manufacturers plan to invest millions of dollars in the city. Government officials claim that as the Asian financial centre looks to diversify its economy, Chinese semiconductor companies are now investing in R&D and production in Hong Kong.

By employing cutting-edge technologies like robotics, artificial intelligence, the Internet of Things, and 3D printing, they hope to increase production efficiency.

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