Japan launches 370‑trillion‑yen AI and semiconductor investment roadmap

Prime Minister Sanae Takaichi unveiled a 14‑year growth roadmap that earmarks more than 370 trillion yen (about US$2.3 trillion) for public‑private investment across 17 strategic sectors. The plan allocates ¥101.6 trillion specifically for artificial intelligence and chip‑related projects, including ¥68 trillion for semiconductors and ¥10.5 trillion for “physical AI” that powers autonomous robots and equipment. Other highlighted areas are next‑generation wireless, nuclear‑fusion power, defense, space, shipbuilding, offshore wind and green‑energy infrastructure.

The roadmap identifies 62 priority products and technologies and expects substantial economic spillovers, projecting hundreds of trillions of yen in added output by fiscal 2040. It will be folded into upcoming budget cycles, with the government aiming to contribute roughly ¥10 trillion per year. Analysts note the plan’s fiscal sustainability is uncertain given Japan’s debt‑to‑GDP ratio above 230 %, and market participants warn that the large‑scale borrowing could push Japanese Government Bond yields higher, affecting global bond markets and the yen.

The initiative marks Japan’s most ambitious long‑term investment strategy, seeking to revive its semiconductor base, bolster AI deployment, and improve economic security, while the execution risk remains high.