The initiative spans 17 strategic sectors and sits within a broader 2040 technology push tied to demographics, robotics strength, and competition in AI, chips, and other advanced industries.
Japan plans to direct 10.5 trillion yen ($65.1 billion) in combined public and private investment into physical AI across 17 strategic sectors by fiscal 2040, part of a wider long-term industrial policy push in advanced technologies. The June 19 initiative came as the government also advanced AI law reviews and followed other recent moves on interest rates, EV battery policy and AI-related cybersecurity, while the broader strategy is framed as a response to labor-force decline and a bid to strengthen Japan’s position in strategic technologies.