Japan's High-Stakes Gamble To Turn Island of Flowers Into Global Chip Hub

An anonymous reader quotes a report from the BBC: The island of Hokkaido has long been an agricultural powerhouse -- now Japan is investing billions to turn it into a global hub for advanced semiconductors. More than half of Japan's dairy produce comes from Hokkaido, the northernmost of its main islands. In winter, it's a wonderland of ski resorts and ice-sculpture festivals; in summer, fields bloom with bands of lavender, poppies and sunflowers. These days, cranes are popping up across the island -- building factories, research centers and universities focused on technology. It's part of Japan's boldest industrial push in a generation: an attempt to reboot the country's chip-making capabilities and reshape its economic future.

Locals say that beyond the cattle and tourism, Hokkaido has long lacked other industries. There's even a saying that those who go there do so only to leave. But if the government succeeds in turning Hokkaido into Japan's answer to Silicon Valley -- or 'Hokkaido Valley', as some have begun to call it -- the country could become a new contender in the $600 billion race to supply the world's computer chips. At the heart of the plan is Rapidus, a little-known company backed by the government and some of Japan's biggest corporations including Toyota, Softbank and Sony.

Born out of a partnership with IBM, it has raised billions of dollars to build Japan's first cutting-edge chip foundry in decades. The government has invested $12 billion in the company, so that it can build a massive semiconductor factory or 'fab' in the small city of Chitose. In selecting the Hokkaido location, Rapidus CEO Atsuyoshi Koike points to Chitose's water, electricity infrastructure and its natural beauty. Mr Koike oversaw the fab design, which will be completely covered in grass to harmonize with Hokkaido's landscape, he told the BBC. Local authorities have also flagged the region as being at lower risk of earthquakes compared to other potential sites in Japan.

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