Japan will invest an initial 70 billion yen ($500 million) in a new semiconductor venture led by tech firms including Sony Group and NEC Corp, as the Asian country seeks to regain its market leading position in advanced chips production.

The country's revenue from its semiconductor industry reached $43.7 billion in 2021, and is projected to hit $50 billion by year-end 2022, with a forcast to increase to almost $52.4 billion dollars by 2023, according to data from Statista.

According to Yasutoshi Nishimura, Japan's Minister of Economy, Trade and Industry, "Semiconductors are going to be a critical component for the development of new leading-edge technologies such as AI, digital industries and in healthcare."

The government will likely invest billions of dollars more in the coming years as analysts estimate that it would require an investment of at least $78 billion for Japan to revive the semiconductor industry.

The world's leading semiconductor companies include US-based Intel, Taiwan's TSMC and America's Qualcomm.