Japan Artificial Intelligence Chip Market Expected to Reach USD 8,777 Million by 2033 - IMARC Group

February 10, 2025 | Technology & Media

Japan Artificial Intelligence Chip Market Statistics, Outlook and Regional Analysis 2025-2033

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.

Japan Artificial Intelligence Chip Market

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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.

Japan Artificial Intelligence Chip Market Statistics, By Region

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.

Kanto Region Artificial Intelligence Chip Market Trends:

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.

Kansai/Kinki Region Artificial Intelligence Chip Market Trends:

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.

Central/Chubu Region Artificial Intelligence Chip Market Trends:

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.

Kyushu-Okinawa Region Artificial Intelligence Chip Market Trends:

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.

Tohoku Region Artificial Intelligence Chip Market Trends:

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.

Chugoku Region Artificial Intelligence Chip Market Trends:

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.

Hokkaido Region Artificial Intelligence Chip Market Trends:

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.

Shikoku Region Artificial Intelligence Chip Market Trends:

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.

Top Companies Leading in the Japan Artificial Intelligence Chip Industry

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.

Japan Artificial Intelligence Chip Market Segmentation Coverage

  • Based on the chip type, the market has been segmented into GPU, ASIC, FPGA, CPU, and others. GPU chips are developed for parallel processing. ASIC chips are designed for power and performance efficiency. FPGA chips are cost-effective and utilized for functions other than AI. Lastly, CPU chips are utilized in TVs, phones, and computers.
  • Based on the technology, the market has been categorized into system-on-chip (SoC), system-in-package (SIP), multi-chip module, and others. In system-on-chip (SoC), all system elements are incorporated into a single chip, while in system-in-package (SIP), numerous separate chips are packed within one enclosure together. Multi-chip module is a collection of multiple specialized AI processing chips.
  • Based on the processing type, the market has been divided into edge and cloud. In edge processing, data is processed on the device its generated in, while in cloud processing, information is sent to a remote server in the cloud.
  • Based on the application, the market has been separated into natural language processing (NLP), robotics, computer vision, network security, and others. In NLP, AI chips power language perception and generation in chatbots, while in robotics, these chips facilitate motion planning and object recognition. In computer vision, AI chips enable high-speed image processing for facial recognition, while in network security, these chips are used for advanced threat detection.
  • Based on the industry vertical, the market has been split into media and advertising, BFSI, IT and telecom, retail, healthcare, automotive and transportation, and others. AI chips are utilized for targeted promotion and personalized content delivery in media and advertising. In the BFSI sector, these chips facilitate the processing of complex financial algorithms, while in IT and telecom, they optimize network management and improve service delivery. In retail, AI chips aid in managing inventory and logistics, and in healthcare they are used in medical diagnostic tools. Lastly, in automotive and transportation, AI chips are employed for navigation and safety in autonomous vehicles.

 

Report Features Details
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 Type
  • Technology
  • Processing Type
  • Application
  • Industry Vertical
  • Region
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)


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