Japanese Chip Companies and Investors Eye Growth Amid New Policies, $700M Investment

Japanese chip companies are tapping billions of dollars and collaborating with foreign firms as part of new government policies aimed at boosting the country's technological capabilities. Hong Kong-based Sengu Capital is launching a new hedge fund focused on improving corporate management in Japan, leveraging the country's financial market revival driven by governance reforms. Sakana AI sees potential for more strategic investors in Japan as rising US-China tensions push the country to enhance its own AI ecosystem. Japanese chip startup Rapidus is seeking to raise $696 million from existing and new investors by issuing new shares to finance its chip development efforts, with reports suggesting a $700M investment. Additionally, Japan Inc. is eyeing larger overseas M&A opportunities in pursuit of growth.