Japan-U.S. AI memory chip consortium poses isolation risk to Korea

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Japan-U.S. AI memory chip consortium poses isolation risk to Korea

Published: 02 Jun. 2025, 14:14 Updated: 02 Jun. 2025, 20:22

Audio report: written by reporters, read by AI

The logo of SoftBank is displayed at a company branch in Tokyo on Jan. 28. [REUTERS/YONHAP]

In a bold move to reclaim its once-dominant position in the chip industry, Japan is taking aim at the crown jewel of Korea’s semiconductor sector — memory chips for artificial intelligence (AI).

In its attempt to develop next-generation memory chips for AI applications, the project has brought together the financial backing of SoftBank, the technology of Intel and the research capabilities of the University of Tokyo — along with the country’s strengths in materials, parts and equipment.

According to a report by the Japanese financial newspaper Nikkei on Saturday, SoftBank and Intel have established a company called Saimemory to lead the development of low-power memory chips for AI. The aim is to create an alternative to high bandwidth memory (HBM), currently dominated by Korean chipmakers.

HBM is an advanced memory technology that stacks multiple layers of dynamic random-access memory, or DRAM, and is used in AI accelerators produced by companies such as Nvidia and AMD. SK hynix and Samsung Electronics control roughly 90 percent of the global HBM market.

But instead of competing directly in HBM, SoftBank and Intel plan to develop a different kind of “stacked DRAM chip” that significantly reduces power consumption — effectively seeking to reshape the market rather than entering the existing one.

Figurines with computers and smartphones are seen in front of the words ″Artificial Intelligence AI″ in this illustration taken on Feb. 19, 2024. [REUTERS/YONHAP]

According to TV Tokyo, Saimemory will begin operations in July, with SoftBank serving as the company’s chief financial officer, Intel as chief technology officer and University of Tokyo as chief science officer. A former Toshiba executive will take the helm as CEO.

Of the initial 10 billion yen ($69.7 million) in project funding, SoftBank is contributing 3 billion yen. The company also plans to seek support from the Japanese government. The project will leverage Intel’s chip-stacking technology and data transmission patents held by the University of Tokyo. Other potential partners include Japanese advanced substrate manufacturer Shinko and the Riken research institute.

If development succeeds, SoftBank will have priority access to the chips.

Japan's DRAM industry — once a global powerhouse until the 1980s — effectively vanished 13 years ago, after falling behind due to U.S. trade pressure and the rise of Korean competitors. Elpida, Japan’s last DRAM manufacturer, went bankrupt in 2012 and was acquired by U.S.-based Micron. Toshiba spinoff Kioxia now only produces NAND flash memory.

Given the capital-intensive nature of the industry, a full-fledged return to DRAM production by Japan remains unlikely.

However, Saimemory defines itself as a fabless chip design and intellectual property management company — contrasting with Samsung Electronics and SK hynix, which synthetically design and manufacture memory chips.

Japan’s approach is similar to that of Nvidia, which designs AI chips and outsources production to foundries such as TSMC. Japanese media speculate that Saimemory will similarly contract production to a Taiwanese foundry, while suggesting that Rapidus, a semiconductor company founded in 2022 with backing from Toyota, Sony and SoftBank, could eventually take over manufacturing. Micron, which has DRAM production facilities in Japan and Taiwan, has also been mentioned as a possible partner.

Atsuyoshi Koike, center, CEO of Rapidus, poses for a photo with Mukesh Khare, general manager of IBM Semiconductor division, left, and Henri Richard, general manager and president of Rapidus Design Solutions, during the launch of a new company in Silicon Valley in California aimed at securing U.S. clients in April 2024. [RAPIDUS]

The Japanese government and SoftBank are working in tandem to rebuild the country’s semiconductor industry. According to the Asahi Shimbun, Japan has so far pledged and invested a total of 1.82 trillion yen in Rapidus, amending laws such as the Information Processing Promotion Act to do so.

Last April, SoftBank began construction of Japan’s largest data center in Hokkaido, investing 65 billion yen with about 45 percent subsidized by the government. The facility is located near Rapidus, feeding speculation that it will source chips from the new foundry. If realized, Rapidus could overcome one of the greatest challenges for latecomer foundries — securing large customers.

“The Japanese semiconductor industry was considered dead, with only materials and equipment companies left,” said an executive at a Korean chipmaker, speaking on condition of anonymity. “But now, by partnering with the United States and Taiwan — such as bringing in a TSMC plant and IBM’s technology for Rapidus — they are rapidly filling the gap. Korean memory makers risk becoming isolated.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY SHIM SEO-HYUN [[email protected]]