Nvidia and Kawasaki Heavy Industries will co-develop AI-powered robots for use in shipbuilding, the Japanese firm said Thursday during a visit to Tokyo by the U.S. chip giant's CEO Jensen Huang.

The aim is to use the robots in welding, painting, inspection and material handling as part of a "next-generation digital shipyard using physical AI and digital twin technology", Kawasaki said in a statement.

"Japan's shipbuilding industry currently faces serious challenges, including a declining number of skilled workers and labor shortages driven by the falling birthrate and aging population," the company said.

"At the same time, global efforts to reduce environmental impact are driving worldwide demand for low- and zero-carbon vessels, making it an urgent priority for the shipbuilding industry as a whole to expand construction capacity and improve productivity," it added.

Taiwanese-born Huang, 63, also visited a Tokyo arcade on Wednesday with Sega executives and thanked the Japanese video game maker for saving Nvidia with a $5-million investment in the 1990s.