Major transformations in society including digitization, post-5G, and proliferation of AI are causing paradigm shifts in the semiconductor industry. This chapter describes the changing environment for the industry and the resultant paradigm shifts from general-purpose to specialized chips, von Neumann to neural network and wired-logic computer architecture, and 2D to 3D integration, elaborating on the rationale for Japan’s strategy to revive its semiconductor industry. In addition, it draws parallels between the on-going Japan-Taiwan collaboration to build semiconductors and another one to build a dam 100 years ago. It closes with a discussion of the strategy of Rapidus, Japan’s new advanced semiconductor fab, to focus only on the most advanced manufacturing processes and complement, not compete with the mega foundries.