Japan just laid out one of the most aggressive national technology investment plans in modern history. The government is targeting 370 trillion yen, roughly $2.3 trillion, in combined public and private investment by fiscal year 2040 across 17 strategic sectors.

The plan, reported by Nikkei, centers on three pillars: artificial intelligence, semiconductors, and space development. Prime Minister Sanae Takaichi is spearheading the initiative, which is expected to be detailed as early as the week of June 23, 2026.

Semiconductors and AI take center stage

Japan wants to increase domestic semiconductor sales from approximately 8 trillion yen to 40 trillion yen, about $254 billion, by 2040. That’s a fivefold increase in roughly 15 years.

On the AI front, the government is earmarking around $65 billion specifically for physical AI investments. The ambition is to capture over 30% of the global market share in AI robotics by 2040.

The strategy builds on commitments Japan has already made. Since 2021, the government has funneled approximately 5.7 trillion yen into semiconductor and AI development.

Who benefits and how the money flows

The core philosophy here is using public funding as a catalyst for private sector investment.

Rapidus Corporation is perhaps the most visible beneficiary of this approach. The chipmaker has already received roughly 1.7 trillion yen in government subsidies for semiconductor development. Other major corporations expected to benefit include Rohm and Kioxia, both established players in Japan’s semiconductor ecosystem.

The crypto-shaped hole in the strategy

The strategy contains no specific initiatives related to crypto assets or digital assets. Japan has historically been one of the more progressive regulatory environments for digital assets, and its Financial Services Agency has been actively developing rules around stablecoins and token offerings. Separate digital asset policies are reportedly in development, running on a parallel timeline to this investment push.