The Japan artificial intelligence chip market size was valued at USD 864 Million in 2024, and it is expected to reach USD 8,777 Million by 2033, exhibiting a growth rate (CAGR) of 29.4% from 2025 to 2033.
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The market in Japan is largely propelled by advanced driver-assistance systems extensively being utilized in cars. For example, in March 2024, SoundHound AI, Inc., a leader in voice artificial intelligence, proclaimed that its voice assistant with integrated ChatGPT would be the first to go into cars in Japan. Besides this, the increasing need for AI-driven applications across the healthcare, finance, automotive, etc., industries is positively influencing the market across the country. For instance, in November 2024, Japan invested around USD 9.9 Billion into the chip and quantum computing fields to advance AI solutions.
Moreover, the large amounts of data being generated by digital platforms and IoT mechanisms are bolstering the requirement for artificial intelligence bits. Furthermore, the ongoing advancements in machine learning and deep learning techniques are also catalyzing the market expansion across the country. For example, in November 2024, the Prime Minister of Japan announced a USD 65 Billion proposal to boost the chip and artificial intelligence industries via subsidies and other monetary incentives by 2030.
The market research report has also provided a comprehensive analysis of all the major regional markets, which include the Kanto region, Kansai/Kinki region, Central/ Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region. The development of more compact AI chips with higher processing abilities is fueling the market expansion in Japan.
The market growth in the Kanto region is primarily boosted by the rising demand for AI chips for numerous applications in robotics, computer vision, network security, etc. For instance, in November 2024, Japan invested approximately USD 86.1 Billion in microchips and artificial intelligence (AI) to reclaim its position as a tech leader.
The market outlook in the Kansai/Kinki region, particularly in cities like Kyoto and Osaka, is experiencing several advancements and the utilization of AI chips in the automobile, manufacturing, and electronics industries. Moreover, in November 2024, EdgeCortix received a ¥ 4 Billion grant from Japan’s NEDO to expand energy-efficient AI chipsets for post-5G communication arrangements.
Extensive utilization of artificial intelligence chips in automobile and manufacturing sectors in the Central/Chubu region to facilitate precision in production techniques, enhanced automation, and innovation in product development is boosting the market expansion. For example, Vietnam’s financing and promoting technology (FPT) firm, which uses Nvidia’s advanced computing platform, launched its AI factory in Japan in November 2024.
The rising push towards digital transformation and the incorporation of advanced AI technologies in the Kyushu-Okinawa region of Japan are bolstering the market expansion forward. Additionally, continuous advances across numerous sectors in the region are positively influencing the market statistics. For instance, in November 2024, NVIDIA announced a number of partnerships with SoftBank Corp. designed to accelerate Japan’s sovereign AI initiatives.
The Tohoku region of Japan is experiencing substantial growth in the AI chip market, owing to the extensive technological innovations in the IT and telecom, healthcare, automotive, etc., industries. Moreover, in July 2024, Japanese artificial intelligence firm Preferred Networks ordered Samsung Electronics to develop chips for AI applications employing its 2-nanometre foundry method and advanced chip packaging service.
The market in the Chugoku region of Japan is benefiting from the widespread adoption of AI across tourism, agriculture, and cultural heritage industries. Besides this, the government and private sectors are investing increasingly in chip and AI technologies, further propelling the market expansion.
The Hokkaido region focuses mainly on innovation within the robotics and manufacturing industries, which is fueling the demand for artificial intelligence chips in the area. Additionally, the extensive funding in data centers and next-generation semiconductor projects by leading players is also catalyzing the market expansion. For instance, in August 2024, NVIDIA launched its NIM microservices for generative AI applications in Japan and Taiwan.
The inflating investments and development in AI technologies are propelling the market growth in the Shikoku region. Furthermore, the rising integration of artificial intelligence chips in agriculture and healthcare is augmenting the market expansion forward. For example, Fujitsu Limited introduced AI computing broker middleware in October 2024 to enhance GPU performance for AI applications.
There are several companies encompassing the Japan artificial intelligence chip market. Tokyo-based Sakana AI, a Japanese startup company, in October 2024, planned to launch its AI-technology commercial variant in 2025. Besides this, in February 2025, OpenAI teamed up with SoftBank to introduce SB OpenAI Japan, a joint enterprise developing AI tools and models explicitly for Japanese corporations.
Report Features | Details |
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Market Size in 2024 | USD 864 Million |
Market Forecast in 2033 | USD 8,777 Million |
Market Growth Rate 2025-2033 | 29.4% |
Units | Million USD |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
|
Chip Types Covered | GPU, ASIC, FPGA, CPU, Others |
Technologies Covered | System-on-Chip (SoC), System-In-Package (SIP), Multi-Chip Module, Others |
Processing Types Covered | Edge, Cloud |
Applications Covered | Natural Language Processing (NLP), Robotics, Computer Vision, Network Security, Others |
Industry Verticals Covered | Media and Advertising, BFSI, IT and Telecom, Retail, Healthcare, Automotive and Transportation, Others |
Regions Covered | Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, Shikoku Region |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |