The Takaichi administration's 17 strategic sectors are expected to attract approximately ¥370 trillion in combined public- and private-sector investment, highlighting the expansion of investment through 2040 and strong demand for capital expenditure.
The framework for public- and private-sector investment in the Takaichi administration's “17 strategic sectors” has been set out, with AI and semiconductors, digital and cybersecurity, information and communications, quantum technology, defense, aerospace, shipbuilding, GX, drug discovery, and content identified as policy pillars. An investment roadmap covering 62 key products and technologies has also been prepared, with total public- and private-sector investment through FY2040 estimated at more than ¥370 trillion. Although some have questioned its feasibility, policy support is expected to help drive private-sector investment.
In terms of domestic capital expenditure trends, the second preliminary estimate of GDP for April–June 2026 showed that private-sector capital expenditure fell by 0.9% in real terms, indicating a lack of momentum. At the same time, the Bank of Japan's Tankan survey includes a projection for capital expenditure by companies of all sizes to rise 8.8% year on year. This suggests that policy continuity could support companies' willingness to invest, and the expansion of public- and private-sector investment is attracting attention as a realistic theme.
For the comparison of hypothetical portfolios, a “17-sector portfolio” covering the 17 strategic sectors and a “unique-stock portfolio” excluding overlapping stocks were created and indexed from the same date as TOPIX for comparison. As of the 19 June publication date, both portfolios had outperformed TOPIX, with the unique-stock portfolio showing the larger gain. While no conclusion can be drawn from the short-term performance alone, the result is attracting attention as an initial indication that policy-related stocks may outperform the broader market.
At the company level, Kioxia Holdings announced plans to continue joint development with US-based SanDisk and invest approximately ¥5 trillion domestically, targeting the start of operations at its Kitakami Plant during FY2029. This is expected to strengthen Japan's domestic production base, signaling the expansion of capital expenditure in line with public- and private-sector investment trends.