Japan expands strategic investment in AI, quantum computing, and drones

Japan has identified dozens of advanced technologies as priority investment targets as part of an economic strategy led by Sanae Takaichi.

The plan aims to channel public and private capital into industries expected to drive long-term economic growth.

Government officials selected 61 technologies and products for support across 17 strategic sectors. The list includes emerging fields such as AI, quantum computing, regenerative medicine and marine drones.

Many of these technologies are still in early development, but are considered important for economic security and global competitiveness.

The strategy forms a central pillar of Takaichi’s broader economic agenda to strengthen Japan’s industrial base and encourage investment in high-growth sectors. Authorities plan to release spending estimates and implementation timelines by summer as part of a detailed investment roadmap.

Japan has also set ambitious market goals in several sectors. Officials aim to secure more than 30% of the global AI robotics market by 2040 while increasing annual sales of domestically produced semiconductors to ¥40 trillion.

Several Japanese technology companies could benefit from the policy direction. Firms such as Fanuc, Yaskawa Electric and Mitsubishi Electric are integrating AI into industrial robots, while Sony Group produces sensors used in robotic systems.

Chipmakers, including Rohm, Kioxia and Renesas Electronics, may also benefit from increased investment in semiconductor manufacturing and related supply chains.

Despite strong investor interest, analysts note uncertainty about how the programme will be financed, particularly as Japan faces rising spending pressures from social security, defence and public debt.

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