#Japan #Tokyo #Semiconductor #Physical AI #EY Strategy

Overview

EY Strategy and Consulting, headquartered in Chiyoda, Tokyo, has announced the publication of a pivotal book titled _Physical AI Driven by Semiconductors — Assessing Winning Strategies for the Next Decade_, which will be released on June 23, 2026, by Chuo Keizai. This book meticulously organizes critical information surrounding semiconductors, integrating global supply chains, geopolitical risks, procurement strategies, and ESG compliance with a focus on the burgeoning domain of Physical AI.

The Significance of the Book

This publication emphasizes the strategic importance of semiconductors as foundational elements that enable key industries such as AI, data centers, automotive (including electrification and autonomous driving), telecommunications (5G), and IoT. By centering on Physical AI—an advanced concept in next-generation AI—the book explores the evolving landscape shaped by global supply chain dynamics and rising geopolitical tensions. It aims to assist business leaders in making informed strategic decisions that are crucial for navigating the complexities of this rapidly changing international environment.

The authors successfully present a cohesive narrative that transcends individual topics, such as supply chains, geopolitical considerations, and ESG, thereby articulating how these elements intertwine and influence future competitive advantages within the Physical AI era. The readers will find substantial practical value in how these interconnected factors are structured to support critical business strategies for the next decade.

Expert Insights

According to Yoshio Takeichi, the Semiconductor Subsector Leader at EYSC, “We are entering the era of Physical AI, where AI is capable of comprehending and controlling various facets of real-world scenarios including factories, logistics, mobility, healthcare, and social infrastructure. Semiconductors constitute the core that drives this value-producing technological landscape. This book consolidates knowledge about semiconductors—covering their basics, industrial structures, supply chains, geopolitical issues, export regulations, and the implications of Physical AI—offering insights into the competitive advantages businesses must strive for in the coming decade.”

Hiroyuki Okabe, the leader of the Intelligence Unit at EYSC, also remarks, “AI is expanding beyond the digital realm into the real world, initiating a new competitive phase defined as Physical AI. This transformation necessitates a reevaluation of semiconductors from simple electronic components to strategic assets that significantly influence corporate growth and competitive advantage. Our book unfolds this structural transformation, posing a comprehensive blueprint for corporate decision-making in the next ten years.”

Structure of the Book

The book comprises various chapters, each detailing critical components related to semiconductors and AI. The introductory chapter addresses what Next AI entails within the semiconductor industry, while subsequent sections delve into:

1. The Foundations of Semiconductors: Examining key concepts, history, and manufacturing processes.
2. Global Supply Chain Dynamics: A detailed overview of the semiconductor industry's structure, including the roles of key players like NVIDIA, TSMC, and Samsung, as well as the positioning and challenges faced by Japanese companies.
3. Procurement Strategies and Risk Management: Insights into the factors behind the semiconductor shortage, and strategies for optimizing procurement amid geopolitical tensions.
4. Geopolitical Considerations and Semiconductor Supremacy: Evaluating the impact of the U.S.-China rivalry and related export regulations affecting the semiconductor landscape.
5. Next AI and the Era of Physical AI: Outlining the new requirements for semiconductors due to AI advancements and the business impacts of Physical AI.
6. Future-Focused Corporate Strategies: Outlining what it takes for companies to thrive in the semiconductor x AI era, focusing on actionable plans for Japanese firms and their vision for the next decade.

Upcoming Seminar

To coincide with the book release, a seminar titled “Physical AI Driven by Semiconductors — Assessing Winning Strategies for the Next Decade” is scheduled for August 18, 2026, from 12:00 to 13:00. Further details and registration information can be found through the publisher’s website.

Conclusion

This strategic guide by EY Strategy and Consulting is not just a technical exposition but also, importantly, a resource for executives looking to navigate the complex interplay of technology, business strategies, and market dynamics over the next decade.

For inquiries regarding the book or to make a purchase, please visit Chuo Keizai.