The government has published a plan under its Japan Growth Strategy projecting more than ¥370 trillion in combined public- and private-sector investment through fiscal 2040, and has indicated a policy of prioritizing investment in growth areas centered on semiconductors and AI, along with the use of government procurement.
Under its Japan Growth Strategy, the government envisages more than ¥370 trillion in combined public- and private-sector investment across 17 sectors and 62 areas expected to achieve growth. These include semiconductors, AI, data centers, healthcare, space, disaster preparedness and content. This is a “target amount” that includes private-sector investment and market forecasts, and does not mean that government funding will be secured.
The policy places emphasis on public procurement as a role for the government. The envisaged process is for national and local governments to become the first customers, establish a track record, and then expand into the private sector and overseas markets. Public-private cooperation is considered important for developing growth areas.
The strategy recognizes that its implementation will require appropriate selection and concentration of resources, the setting of review dates, and mechanisms to revise programs or end support if results are not achieved. Ensuring that the success of growth areas benefits the public as a whole is also considered important, including through higher wages and spillover effects on domestic investment.
The commentary draws on the views of information sociologists Tsukagoshi Kenji (塚越健司) and Yoshida (吉田), and discusses the scale and timeframe of the investment roadmap centered on semiconductors and AI, as well as the appropriate form of government support.