Japan, S Korea business groups to collaborate on AI, semiconductors

South Korea and Japan’s main business groups met on Jeju Island on December 8 to discuss cooperation in AI and semiconductors.

The Korea Chamber of Commerce and Industry and the Japan Chamber of Commerce and Industry also addressed shared challenges, including declining birth rates and aging populations.

SK Group chairman Chey Tae-won, who leads the Korean chamber, said both countries face external competition in advanced technology and internal demographic issues.

JCCI chairman Ken Kobayashi said he hopes for a cooperative relationship between the two countries.

The two organizations released a joint statement pledging to work together on stable investment environments and supply chains for AI, semiconductor, and energy sectors.

They also agreed to explore joint initiatives in energy and healthcare, as well as to expand economic, tourism, and cultural exchanges.

🔗 Source: Yonhap

🧠 Food for thought

Implications, context, and why it matters.

The joint statement lacks specific funding or policy commitments

The KCCI-JCCI pledge talks about working together in AI and chips. It lists no funding, timeline, or named projects.
Japan’s Ministry of Economy, Trade and Industry (METI) put about $300 million in the Leading-edge Semiconductor Technology Center (LSTC) to build 1.4nm know-how by 2028, with work spanning 2nm onward. South Korea’s Ministry of Economy and Finance set a 26 trillion won support package in May 2024 for chips. Yongin Semiconductor Cluster plans 16 more fabs by 2047. Business conferences keep repeating cooperation pledges. Near-term value sits in steady Seoul and Tokyo diplomacy.

Semiconductor equipment and materials vendors can target government-backed projects in both countries

Rapidus is a Japan-backed chipmaking venture with government support exceeding $2 billion that targets 2nm output by 2027. TSMC leads Japan Advanced Semiconductor Manufacturing (JASM), which runs contract chip fabrication plants. South Korea is building the Yongin Semiconductor Cluster. Lam Research, a US semiconductor equipment maker, is the first global company there.
Equipment and materials firms can chase contracts on subsidized work. Watch grant calls from Japan’s Ministry of Economy, Trade and Industry (METI) plus Korea. Japan’s LSTC contract runs up to five years and covers fabrication technology for 2nm onward. Yongin plans need large infrastructure and tooling for 16 fabs by 2047. Investors can scout niches where Japan is strong in tools, materials, and NAND memory (a common flash storage technology) while Korean firms lead in memory chips. That creates openings in advanced packaging and assembly.