The Japanese Ministry of Economy, Trade and Industry (METI) is set to increase its budgeted support for cutting-edge technology to approximately ¥1.23 trillion (around €6.68 billion), signaling that semiconductors and AI are now viewed as key drivers of national sovereignty.
The decision was finalized this morning when Prime Minister Sanae Takaichi’s Cabinet officially approved the draft initial budget for the fiscal year starting in April 2026, marking a record-breaking investment in these sectors.
METI will receive these funds to reclaim Japan’s status as a global tech superpower, including ¥150 billion (around €814.6 million) for the 2nm chip venture Rapidus and nearly ¥400 billion (around €2.17 billion) for “Physical AI,” a strategic initiative to integrate intelligence directly into Japan’s world-leading robotics and manufacturing industries.
By allocating this funding in the regular initial budget for the first time, Tokyo is making a strategic move toward stable, long-term support for the nation’s semiconductor and domestic AI infrastructure.
