Japan Estimates 17 Strategic Fields Will Receive ¥370 Trillion in Public, Private Investments by Fiscal 2040
Government Outlines Major Investment Framework
Prime Minister Sanae Takaichi Administration Policy
Focus on Growth Strategy Sectors
The Japanese government estimates that more than ¥370 trillion will be invested by the public and private sectors across 17 strategic fields by fiscal 2040. This projection supports the formulation of a new growth strategy under the administration of Prime Minister Sanae Takaichi.
The 17 fields include areas such as artificial intelligence, semiconductors, and shipbuilding. Investment in these sectors forms a key element of the government’s approach emphasizing responsible and proactive public finances. The aim is to attract private capital and strengthen Japan’s international competitiveness.
Breakdown of Projected Investments
AI and Semiconductor Sectors
Digital Infrastructure and Energy Areas
In the AI and semiconductor sectors, ¥10.5 trillion is expected for physical AI technologies that enable autonomous operation of robots and devices. This addresses labor shortages through applications in factory automation and infrastructure inspections.
Digital and cybersecurity sectors anticipate ¥8.2 trillion for autonomous driving technology. An additional ¥32.7 trillion is projected for cloud computing, data centers, and storage batteries by fiscal 2035.
Information and Communications Investments
Resources, Energy, and Content Sectors
Implementation Timeline and Process
The information and communications sector targets about ¥29 trillion across next-generation wireless communications, optical communications, and submarine cables. Of this, ¥20.5 trillion focuses on next-generation wireless networks.
Resources, energy security, and green transformation areas include ¥4.1 trillion for next-generation perovskite solar cells and ¥5 trillion for innovative nuclear reactors. The content sector projects ¥24.5 trillion in games investment by fiscal 2033.
The government plans to present these estimates at a joint meeting of the Council on Economic and Fiscal Policy and the Council for Japan’s Growth Strategy. Following ruling party review, the figures will be incorporated into the Basic Policy on Economic and Fiscal Management and Reform in July.
Estimates were developed through consultations with private companies and industry groups, alongside projected market sizes.