Japan is looking to rebuild its once-dominant position in the global semiconductor market, and it’s turning to a Silicon Valley startup for help. Tenstorrent, a U.S.-based AI chip startup founded by industry veterans from Apple and Intel, has secured a major contract with the Japanese government to train up to 200 Japanese chip engineers over the next five years. This partnership is part of Japan’s broader strategy to revitalize its semiconductor industry, which once controlled over half of the global chip market but now holds less than 10%.
A Key Deal to Revive Japan’s Semiconductor Industry
On Tuesday, Tenstorrent announced it had won a deal worth $50 million with Japan’s Leading-edge Semiconductor Technology Center. This collaboration is aimed at bolstering Japan’s efforts to regain its footing in semiconductor design and production. As part of the deal, Japanese engineers will travel to the United States to work alongside Tenstorrent’s experts, including some of the industry’s biggest names. The goal? To learn the latest technologies and bring that knowledge back to Japan to help strengthen its chip design capabilities.
Japan’s semiconductor industry has long been a global powerhouse, but in recent decades, it has struggled to maintain its dominance. While it once controlled over 50% of the global semiconductor market, Japan now makes up less than 10%. In response, the Japanese government has launched a series of initiatives to regain control over its semiconductor production, with the Rapidus project taking center stage. Rapidus, a contract chipmaker with strong government backing, plans to build advanced semiconductors in Japan and kick off mass production by 2027. However, in order to succeed, Rapidus needs skilled engineers and chip designs — something this new partnership with Tenstorrent is designed to provide.
Training the Next Generation of Chip Designers
The $50 million deal between Tenstorrent and Japan’s semiconductor center aims to bring about a cultural and technical exchange. Beginning in April 2025, up to 200 Japanese engineers will head to Tenstorrent’s U.S. headquarters for hands-on training. These engineers will work directly with some of the leading minds in chip development, including Jim Keller, a former Apple chip architect; Wei-Han Lien, who has also created chips for Apple; and Yasuo Ishii, a veteran of Arm Holdings, which designs the popular chip architecture for many mobile devices.
By learning directly from these experts, the engineers will gain experience in cutting-edge AI chip designs, particularly focusing on RISC-V, an open-source chip design technology. RISC-V is seen as a potential game-changer in the chip industry, offering more flexibility and lower costs compared to traditional proprietary chip designs like those from ARM. This partnership will give Japanese engineers firsthand experience with RISC-V, and they’ll return to Japan with the ability to create their own chip designs using this new technology.
The Future of Japan’s Chip Industry
The partnership between Tenstorrent and Japan is a significant step in Japan’s efforts to reinvigorate its semiconductor industry. The training initiative is not just about teaching engineers new skills; it’s about creating a sustainable pipeline of talent that can support the Rapidus project and other initiatives to rebuild Japan’s chip manufacturing capacity.
According to Tenstorrent’s Chief Customer Officer, David Bennett, Japan’s government and businesses are clearly committed to reshaping the country’s future in chip production. “Japan’s actions and their investments have clearly indicated that they want to be in more control of their own future,” Bennett said in a recent interview. This move to partner with Tenstorrent is a part of that broader vision to create a self-sustaining semiconductor ecosystem in Japan, with local engineers developing local chip designs.
By 2027, the Rapidus factory is expected to start mass production of advanced semiconductors in Japan. The engineers trained by Tenstorrent will play a crucial role in ensuring that Rapidus has the designs and expertise needed to succeed in the highly competitive global semiconductor market.
Why This Partnership Matters
The deal between Tenstorrent and Japan is notable for several reasons:
- Global Semiconductor Supply Chain: The global semiconductor supply chain has been under strain in recent years due to geopolitical tensions and disruptions like the COVID-19 pandemic. By rebuilding its own chip design and manufacturing capacity, Japan hopes to reduce its reliance on foreign suppliers and become a more independent player in the global market.
- The Rise of RISC-V: RISC-V technology, which Tenstorrent is promoting, could become a key player in the future of chip design. By training engineers in RISC-V, Japan is positioning itself to capitalize on this open-source alternative to traditional chip designs.
- AI and Semiconductor Synergy: With the growing demand for artificial intelligence (AI) technologies, companies around the world are racing to develop faster, more powerful chips. Japan’s focus on training engineers to design chips for AI applications reflects the growing importance of the intersection between AI and semiconductor innovation.
- Creating Local Talent: By sending engineers to the U.S. to work with industry veterans, Japan is ensuring that the knowledge gained during the program will be transferred back home, creating a long-term talent pool to support the country’s chip industry.
What’s Next for Japan’s Semiconductor Industry?
The collaboration with Tenstorrent is just one piece of Japan’s ambitious plan to restore its semiconductor industry. With the Rapidus factory slated to begin production in 2027, Japan is hoping to turn its chip industry into a major player once again. The country’s investment in talent and training is a crucial part of this strategy, ensuring that it has the right people with the right skills to take on the global competition in semiconductor design and manufacturing.
As the world increasingly turns to AI and other emerging technologies, the demand for advanced semiconductors will only continue to grow. By focusing on cutting-edge chip design technologies like RISC-V, Japan is positioning itself to be a key player in this growing market — one where it can compete not just in manufacturing, but also in the design and innovation of the next generation of chips.
Conclusion: Japan’s Bold Step Toward Semiconductor Independence
Japan’s partnership with Tenstorrent is an important step in the country’s effort to reclaim its place at the forefront of the global semiconductor industry. By investing in training and developing homegrown talent, Japan is not only preparing for the future of AI chip design but also laying the groundwork for a more self-sufficient and competitive semiconductor ecosystem. With key projects like Rapidus on the horizon, Japan’s ambitious plans for its semiconductor sector could reshape the industry in the coming years.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
