Japan has never been shy about thinking big. But a $2.3 trillion investment plan, spanning 17 sectors and stretching to fiscal year 2040, is a different kind of ambition entirely.
On June 20, 2026, Prime Minister Sanae Takaichi unveiled a long-term economic growth strategy targeting 370 trillion yen in combined public and private investment by 2040. The plan covers artificial intelligence, semiconductor manufacturing, space development, shipbuilding, and critical minerals, among others.
The market noticed immediately. The Nikkei 225 briefly surpassed the 72,000 mark following the announcement, driven largely by AI-adjacent stocks including SoftBank and Tokyo Electron.
What the plan actually says
The semiconductor target alone tells most of the story. Japan currently generates around 8 trillion yen in annual domestic chip sales. The plan aims to push that figure to 40 trillion yen, roughly $254 billion, by 2040. That is a fivefold increase, which would require sustained policy support, private capital, and a significant reconfiguration of Japan’s manufacturing base.
