Japan’s Ministry of Economy, Trade and Industry (METI) will request a record
¥7.8 tln ($49 bln) budget for the fiscal year beginning April 2027 to accelerate
investment in semiconductors, artificial intelligence and other strategic
industries central to Prime Minister Takaichi’s growth agenda. Takaichi has
previously called for ¥370 tln of combined public and private investment over 14
years in priority sectors. Under a reformed budget process allowing uncapped
single-round submissions to reduce reliance on supplementary budgets, METI
proposes ¥6.31 tln for a "strong and prosperous Japan" package, including
roughly ¥2.0 tln for AI, semiconductors and robotics; ¥680 bln to secure
critical mineral supplies, including rare earths; ¥220 bln to strengthen napatha
supply capacity; and ¥180 bln to boost defence and civil‑military dual‑use
capabilities with the Ministry of Defense.
