2/23/2026

Japan - The Missing Link in the AI revolution

 Japan was touted to take over the world in the 1980s, to become the number one economy.  And Francis Fukuyama wrote the book, The End of History. Japan was the most innovative country in the world. Japan was in everything, everywhere. Consumer electronics, household equipment and machine, office machine, automobiles and whatever, machine, machine tools, ...

Where is Japan today? Consumer electronics, household equipment, office equipment, mobile phones, are now being replaced by South Korea and China. Automobiles are going the way of GM, Ford, Chrysler, the way of British motor industries, the way of German automobile industries. What is there left for Japan?

The Chinese EV industries are everywhere, and the ICE automobiles are going nowhere. The Toyotas, Hondas, Mitsubishis, Nissans...will be history soon. Automobiles are the biggest Japanese exports but turning into irrelevant, obsolete. 

The world is now about semiconductors, high end chips and AI. When is Japan in these fields? Japan may still be a player in semiconductors and chips, but only a small player. Japan is just another small player in the game. In AI, Japan is never mentioned. Japan is not a player in AI, the next industrial revolution. What happens to the innovative and creative Japanese in AI when it used to be the key player in practically every industry in the 1980s. Japan is now no longer a player, not in AI.

What is there left for Japan to make a living from trading with the world when it is being eclipsed in practically all industries it used to lead?  What happens to Japan Number One? What Fukuyama did not get it wrong is the part about the end of history. It is The End of History for Japan. Japan is no longer the innovator, the champion, the country that every country wants to beat and emulate. Japan is History. The economic miracle, the industrial giant of the 1980s is now a midget, a non player, the Missing Link in AI. No one will miss the participation of Japan in AI. There is no Japanese software or hardware to talk about. There is no Japanese in the Who's Who in AI.  The only thing related to AI in Japan is computer games, Nintendo, Sega and Sony. Oops, Sony is now a Chinese company. Japan can continue to play games with their computers. That is what is left of Japanese innovation.

The Rising Sun has forgotten to rise...more like a sunset.

10 comments:

Anonymous said...

Japan is now ranked fifth in global GDP rankings, behind India. True or not is all in the statistics, although most would disagree, comparing the living conditions in Japan and India and their per capita GDP.

The Indians are, of course, salivating at the prospect of having overtaken Japan, as always with a song and dance, but let us be honest. Japan falling to fifth from world's second biggest economy is a big drop and would probably fall further.

Japan has huge problems regarding its economy, which is still stagnant after more than 30 years fighting a losing battle. Japan's massive debt to GDP ratio of 236% is one big problem to overcome with interest rate rising. The spat with China is detrimental to Japan, with China putting its slow-motion squeezing by inflicting long-term pain for Japan. Tourists from China are not visiting Japan and is causing serious problems for the Japanese tourism sector. China's ban on Japanese seafood, lifted not long ago after wastewater discharge from Fukushima, is back in full force and Japan's seafood industry is suffering. Most of all, the sanctions put on the export of critical rare earth elements by China is causing Japan's manufacturing serious issues.

Japan is meanwhile losing its last economic bastion in Motor Vehicles. Japan betted on hydrogen fuel cell vehicles and lost the bet to Chinese EVs. The road ahead for Japanese car makers is difficult by being late to the EV party. Even Tesla, in the forefront of EVs before the Chinese, is facing severe headwinds from the Chinese.

Japan was probably too hesitant to change in many fields and could not catch up by being late. We are seeing the same picture with AI, with Japan now trying to enter the game when the others are already far ahead.

Anonymous said...

The Japs r now the NPC in the AI era.

Virgo49 said...

Toshiba once the Kingpin of Japanese's Electronics now been absosred by Hisense

Recently brought two of their 43" Smart Android Ones at less than $300.00 per set

Just a bit less brilliance than Sony!



Virgo49 said...

Amendments absorbed not absosred.

Apologies

Anonymous said...

Japan is already another fallen empire like the Europeans, with little hope of rising, even if Marco Rubio were to become its cheerleader.

Anonymous said...

Toshiba suffered the same fate as Huawei, being singled out for extinction. Huawei refused to lie down and fought back with great success. The rest is history in the making.

Anonymous said...

The closer Japan hugs the USA, the worse it will get hurt. Why hasn't the Japanese learned anything, after what has been done on purpose to cripple Japan by the Anglo-Saxon Whites, is disturbing. Japanese are not stupid when it comes to bullying other Asians.

Anonymous said...

The Japanese are not stupid. They are waiting and plotting to fix up the Americans to fight China for them. Let the two superpowers destroy each other while they watched from the sideline, to pick up the pieces.

Anonymous said...

When Japan attacks America for the millions of Japanese killed in WW2, it would be hell break loose.

Virgo49 said...

Americunts thieves and swindlers that forced Jepun to sign the Plaza Accord that you are producing over capacities

What's a joke!