Japan just laid out one of the most aggressive national technology investment plans in modern history. The government is targeting 370 trillion yen, roughly $2.3 trillion, in combined public and private investment by fiscal year 2040 across 17 strategic sectors.
The plan, reported by Nikkei, centers on three pillars: artificial intelligence, semiconductors, and space development. Prime Minister Sanae Takaichi is spearheading the initiative, which is expected to be detailed as early as the week of June 23, 2026.
Semiconductors and AI take center stage
Japan wants to increase domestic semiconductor sales from approximately 8 trillion yen to 40 trillion yen, about $254 billion, by 2040. That’s a fivefold increase in roughly 15 years.
On the AI front, the government is earmarking around $65 billion specifically for physical AI investments. The ambition is to capture over 30% of the global market share in AI robotics by 2040.
