Japan Plans ¥74 Trillion Bet on AI and Semiconductors

Amid intensifying global competition in AI and chips and mounting concerns over supply-chain security, the government of Sanae Takaichi is advancing a public-private investment roadmap. Japan aims to use a multiyear funding framework, government procurement and tax measures to spur private investment, rebuild its semiconductor industry and cultivate growth engines such as Physical AI.

On June 24, 2026, the Council on Economic and Fiscal Policy and the Japan Growth Strategy Council presented a draft plan calling for more than ¥370 trillion in cumulative public and private investment across 17 strategic fields through fiscal 2040, equivalent to about NT$74 trillion. AI and semiconductors would receive a combined ¥101.6 trillion, including ¥68 trillion for semiconductors and ¥10.5 trillion for Physical AI.