Japan boosts domestic AI and chip production with record budget
Japan is preparing a major expansion of state support for the semiconductor and artificial intelligence sectors, with planned spending set to roughly quadruple compared with current levels, according to a budget request document from the Ministry of Economy Trade and Industry (METI), Qazinform News Agency correspondent reports, citing Jiji Press.
Japan’s government is finalizing the 2026 fiscal year budget for METI at approximately ¥3.0693 trillion ($19.6 billion), marking a 1.5-fold increase over the initial 2025 budget.
The budget includes ¥1.239 trillion ($7.9 billion) specifically for domestic AI and semiconductor development.
Of the AI allocation, ¥387.3 billion is earmarked for the development of foundational domestic AI models. Authorities aim to leverage these models to advance “physical AI” capable of operating robots. Meanwhile, ¥150 billion is planned as government investment to support companies like Rapidus in Tokyo, focusing on the mass production of next-generation semiconductors.
The budget also allocates ¥1.15 trillion to energy security and economic safeguarding initiatives. This includes overseas geological surveys for oil and natural gas, as well as securing stable supplies of critical minerals such as rare earth elements.
Earlier, Qazinform News Agency reported that, addressing the First Central Asia–Japan Dialogue Summit in Tokyo, President Tokayev emphasized the critical importance of cooperation in digital transformation and the development of artificial intelligence.