Japan selected 61 products and technologies for priority investment, including 27 items already under early review, such as physical AI systems, regenerative medicine, quantum computing, and marine drones, the government said, according to Bloomberg.
Bloomberg reported the selections were released after a growth strategy panel meeting and said officials plan to present spending estimates and timelines for each item by summer as part of an investment roadmap. Prime Minister Sanae Takaichi told ministers, "In addition to the leading products and technologies presented today, let's move forward with drafting public-private investment roadmaps for others as well, with a strong sense of urgency," Bloomberg quoted.
The investment plan is a central pillar of Takaichi's economic strategy to channel public and private capital into 17 strategic sectors. Bloomberg said the list reflects economic security considerations and export potential, and noted the government will estimate the economic impact of the investments and incorporate results into its mid- to long-term economic forecast due this summer.
Bloomberg also reported targets set during the panel discussion, including an aim to capture more than 30% of the global AI robotics market by 2040. Reuters said the government set a new goal for annual sales of domestically produced semiconductors of 40 trillion yen by 2040, up from roughly 8 trillion yen now and extending a previous target of 15 trillion yen for 2030.
Jiji reported that the government presented draft roadmaps for 27 technologies, including AI robots and semiconductors, and added specific goals such as securing more than 30% global share for AI robots and obtaining a 20 trillion yen market by 2040. Jiji also said the government included targets for small unmanned aircraft, aiming to secure a supply base capable of providing 80,000 units by 2030 for potential defense use.
Bloomberg cited market effects, saying Takaichi's push helped lift Japanese equities earlier this year, with the Nikkei 225 briefly breaking the 59,000 mark before a pullback this week following tensions in the Middle East. Bloomberg named companies that could benefit from targeted investment, including Fanuc, Yaskawa Electric, Mitsubishi Electric, Sony Group, Rohm, Kioxia, Renesas Electronics, Sumco, Fujifilm Holdings, and Kyocera.
The government acknowledged uncertainty over financing. Bloomberg quoted Takaichi telling Finance Minister Satsuki Katayama, "We need to carefully examine the fiscal scale that is feasible while steadily reducing the ratio of government debt to GDP." Bloomberg also reported concern from Hideo Kumano, executive economist at Dai Ichi Life Research Institute, who said the strategy "actually feels like there isn't much concentration going on," and that the range of sectors selected left the plan "somewhat unfocused." Jiji quoted the prime minister saying the government would clarify support measures and investment scales for each product.
Article edited by Jack Wu
