Rathbones sees Japan's robotics and chip technology firms benefiting from AI boom
SMH•Rathbones identified Japanese automation and semiconductor equipment firms as investment opportunities, citing workforce shrinkage and increasingly complex AI chip manufacturing. It also noted risks from Chinese robotics competition and uneven semiconductor spending.
1. Investment opportunities
Rathbones identified Japanese automation and semiconductor equipment firms as investment opportunities in analysis published November 9, 2026. It said Japan’s shrinking workforce is driving demand for automation, while increasingly complex AI chip manufacturing supports semiconductor equipment suppliers.
2. Economic conditions
Business conditions reached a 35-year high, though gains from the AI boom have had limited spillovers into the broader economy. The Bank of Japan raised its policy rate to 1.25% in September, with markets expecting faster increases to contain inflation.
3. Risks to consider
Rathbones cited Chinese robotics competition and uneven semiconductor spending as risks, and said technological advantages and stronger returns on capital are important investment considerations.
