Japan to invest 370 trillion yen in AI, semiconductors and other strategic sectors by 2040

The Japanese government has outlined a new growth strategy that will channel more than 370 trillion yen (about $2.5 trillion) in public‑private investment through 2040. The plan targets 17 strategic fields, including physical artificial intelligence and robotics, semiconductors, unmanned aerial vehicles, LNG carrier shipbuilding, defense, quantum technologies, aerospace, content creation, cyber‑security, nuclear fusion, information‑communications, and marine industries. Physical AI alone is slated to receive roughly 10.5 trillion yen.

The strategy also aims to boost Japan’s content exports to 20 trillion yen annually by 2033, matching automobile sales. Funding for these projects will be managed separately from other budget items, with a new budgeting framework that removes annual constraints for private investors while keeping the national debt‑to‑GDP ratio within a stable range.