The Future of AI Depends on Asia

In turn, Japan uses China's rare earths to produce the three chemicals mentioned above that are subsequently shipped to South Korea, Taiwan and back to China, the world's largest manufacturers of semiconductors and microchips. According to the government reports, Japan produces about 90 percent of fluorinated polyimide, about 70 percent of hydrogen fluoride and 90 percent of photoresists. This makes Japan almost a full monopolist in this type of production, making it very difficult for its consumers to find substitutes or build up enough capabilities to avoid Japan entirely. Commenting on the current tensions between Japan and South Korea experts note that Japan developed the processing technology for decades and it will take several years to replicate it.