Japan to Invest 3,500 Trillion Won in Growth Strategies Including Physical AI and Semiconductors by 2040

Managed Separately from Other Expenditures

The Japanese government has set a target for the public and private sectors to invest at least 370 trillion yen (approximately 3,500 trillion won) in 17 growth strategy projects, which are being promoted as key initiatives under its “Building a Strong Japan” policy, by 2040.

Yonhap News Agency

According to local media reports on June 20, the investments will span 17 fields and 62 products and technologies, including physical artificial intelligence (AI), semiconductors, unmanned aerial vehicles (drones), shipbuilding such as liquefied natural gas (LNG) carriers, defense industry, quantum technology, aviation and space, content, digital and cyber security, nuclear fusion, information and communications, and marine industries. Among these, the physical AI sector (utilization of AI in real-world physical platforms such as robots and industrial machinery), which is being fostered as a next-generation growth engine, has been designated as a priority project, with 10.5 trillion yen (about 99.6 trillion won) to be invested by 2040.

To build essential communications infrastructure for the spread of AI, including high-speed networks and satellite optical communications, 29 trillion yen (approximately 275 trillion won) will be invested in three areas: next-generation wireless communications, optical communications, and undersea cables. Efforts will also focus on invigorating public and private investment in strategic resource development such as rare earths, drone development and production, nuclear fusion power, cloud technology, and batteries. The government will provide large-scale support for Japan’s content industry, including animation and film, to raise overseas sales to 20 trillion yen (189.7 trillion won) annually by 2033—an amount comparable to Japan’s automobile exports.

The Japanese government will manage the investment funds for the 17 growth strategy sectors separately from other expenditures. To help private companies make mid- to long-term investment decisions, a new expenditure framework will be established that increases predictability and is not bound by annual budget constraints. However, the government will allocate funds within a range where the national debt-to-GDP ratio can continue to decline in a stable manner.

This content was produced with the assistance of AI translation services.