Politics and Economy

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Society

Japan's $260B Semiconductor Ambition: Government Targets 40 Trillion Yen by 2040 with AI Chip Research Hubs

Japan's government has set an ambitious target of ¥40 trillion ($260B) in domestic semiconductor sales by 2040, announcing plans for cutting-edge AI research hubs. From Rapidus's 2nm chips in Hokkaido to TSMC's $17B 3nm fab in Kumamoto and JDI's $13B US display plant, we break down Japan's full semiconductor strategy—and compare it with the US CHIPS Act, EU Chips Act, and South Korea's and Taiwan's chip policies.

Society

BOJ Holds Rates in March 2026: How the Iran Conflict Complicated Japan's Path to Higher Rates

The Bank of Japan held its policy rate at 0.75% at its March 18-19, 2026 meeting, as oil prices and yen weakness from the late-February Iran conflict weighed on the case for a hike. We cover Deputy Governor Himino and hawk Takata, the reflationist board nominees, the rate gap with the Fed and ECB, the yen carry trade, and the road to the June hike to 1.0%.

Life & Lifestyle

Japan's Foreign License Conversion: Written Pass Rate Falls From 90% to 40%, Practical From 30% to 10%

Japan tightened its foreign driver's license conversion test in October 2025: the written exam went from 10 to 50 questions and the pass mark from 70% to 90%, a certificate of residence became mandatory, and tourists can no longer apply. National figures the police released in March 2026 show the knowledge test pass rate falling from 90% to 40% and the practical test from 30% to 10%. A look at the accidents behind the reform and how other countries handle conversion.

Society

Yen Stablecoin Revolution: JPYC Launch and Megabank Entry Accelerate Japan's Digital Currency Push

Japan launched its first yen-pegged stablecoin, JPYC, in October 2025, and cumulative issuance passed 3 billion yen within seven months. Three megabanks are now working toward a jointly issued trust-type coin. A look at Japan's regulatory framework, how it compares with the US GENIUS Act and EU MiCA, and where the crypto tax and FIEA reforms stand.

Society

BOJ Rate Hike Signals: Hawkish Board Member Takada Calls for "Gear Shift" as Inflation Risks Mount

BOJ's most hawkish board member Hajime Takada urged further rate hikes in a Kyoto speech, using a "gear shift" metaphor to describe Japan's monetary policy normalization. With the 2% inflation target nearly achieved and wage growth accelerating for a fourth year, we analyze what this means for global markets, the yen carry trade, and how Japan's path diverges from the Fed and ECB.

Society

Yen Credibility Crisis: Why Japan's Currency Lost Its Safe-Haven Status While the Swiss Franc Thrived

Once considered twin safe-haven currencies, the yen and Swiss franc have diverged dramatically. Explore the structural factors behind the yen's historic weakness: Japan's government debt, its expanding digital deficit and a shifting current account. Plus why the franc keeps rising even though Japan's policy rate is now 1.0% and Switzerland's is zero.