Japan has unveiled a long-term target to lift sales of semiconductors made within the country to 40 trillion yen per year by 2040, part of a wider growth investment initiative under Prime Minister Sanae Takaichi. The new 2040 ambition represents roughly a fivefold increase from present annual sales, which the government estimates at about 8 trillion yen, and builds on an earlier objective of 15 trillion yen by 2030.
The government has identified chips as one of multiple products deemed strategically important for economic security. As such, semiconductors will be a focus of expanded public investment intended to stimulate growth and help Japan capture a larger share of the market as demand rises with the development of artificial intelligence.
Officials said roadmaps with additional detail will be completed in the coming months and that those plans will be folded into next year’s budget planning. The decision to elevate the 2040 target signals a concerted effort to rebalance Japan’s industrial position in semiconductors and to align public resources with the expected expansion of chip design and manufacturing driven by AI.
Japan’s current market position is an important reference point for the strategy. At its peak in the 1980s, the country accounted for half of the global chip market, but that dominance contracted sharply in the following decade amid U.S.-Japan trade tensions and a shrinkage of the domestic electronics industry. Today, Japan holds less than 10% of the global semiconductor market, a gap the government aims to narrow through the new targets and investment measures.
The announcement also included a currency conversion note for context: $1 = 157.7100 yen. Beyond setting numerical targets, the government’s approach emphasizes the need to position Japan to take advantage of AI-driven growth in advanced chip segments, although the specific policy instruments and timing will be clarified in the forthcoming roadmaps and budget allocations.
Context and next steps
With the 2040 figure now established, policymakers will move to design implementation pathways and select areas for focused public investment. Those implementation details are slated to be finalized in the short term and incorporated into the government’s budget-making process for the following year.