Japan on Wednesday unveiled an investment plan target worth around $2.3 trillion for sectors, including artificial intelligence, semiconductors, and nuclear fusion technology by 2040.
The government will target 370 trillion yen ($2.3 trillion) in combined public and private investment by fiscal 2040 across 17 sectors, covering 62 designated products and technologies, deemed critical to economic security, according to Kyodo News.
These include AI, quantum technology, energy, medicine, and entertainment, and the plan is intended to help private-sector firms plan investments by providing a government benchmark.
Of the total amount, 68 trillion yen ($420 billion) will go to semiconductors.
Some 10.5 trillion yen ($64 billion) is expected to be invested in physical AI, and 8.2 trillion yen ($50 billion) in self-driving technology.
By fiscal 2035, 32.7 trillion yen ($202 billion) is projected to be invested in data centers and storage batteries.
Some 30 trillion yen ($185 billion) is earmarked for content by fiscal 2033, including games, anime, manga, music, and films.
In addition, 20.8 trillion yen ($128 billion) is expected for biopharmaceuticals and regenerative medicine, and 3 trillion yen ($18 billion) for nuclear fusion technology.
While the overall projected economic impact of the investment plan was not disclosed, it is estimated that investment in AI will generate 443 trillion yen ($2.7 trillion) in economic impact, while data center investments are expected to generate 107 trillion yen ($661 billion).
The government expects Japan's inflation-adjusted gross domestic product to grow by nearly 2% by fiscal 2040.
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