Wednesday, March 11, 2026
In 2020, sales of Japanese domestically produced Japan looking for $250bn semi output by 2040semiconductors totalled $32 billion. A previous government target was $100 billion by 2030.
The government has decided that ‘physical AI’ ICs will be its priority – meaning chips which control machines. It reckons it can get a 30% world market share in this field by 2040.
As well as setting up R&D and design centres the government plan includes help for acquiring industrial land needed to build chip plants and for building the infrastructure, i.e water purification plants, to support them.
The plan is part of Takaichi’s ‘crisis investment management’ strategy via public-private investment dubbed ‘Sanaeomics’.
In addition to financial assistance the government intends to change regulations, such as those on water use, to attract semiconductor and datacentre construction.
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