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Japan's Industry Ministry Requests Record $49 Billion Budget for AI, Semiconductors and Robotics

August 31, 2026 at 22:21 EDT

Policy & Regulation
Infra & Chips
Robotics

Japan's Ministry of Economy, Trade and Industry has asked for a record ¥7.8 trillion ($49 billion) in fiscal 2027 spending to accelerate investment in artificial intelligence, semiconductors and robotics, a roughly 2.5-fold increase from the ministry's prior initial budget.

August 31, 2026 · METI

Record $49B industry budget bid

Japan's industry ministry asked for ¥7.8 trillion ($49 billion) for fiscal 2027 — about 2.5 times its prior initial budget — to scale AI, semiconductors and robotics.

Budget scale

The request is 2.5× last year's initial plan

¥3.07T

FY2026 initial

¥7.79T

FY2027 request

Same unit: METI-related yen totals. Column height is 4 vs 10 stacked blocks, matching the 2.5× jump.

$49B

Total METI-related request

2.5×

Vs FY2026 initial budget

¥1.99T

AI, chips and robotics

¥896B

Physical AI foundation model

What happens next

METI files request

August 31, FY2027 bid

→

Finance Ministry review

Unpriced items still open

→

Cabinet draft

Due by year-end

Industrial push

Recurring budget authority for physical AI and domestic chips, with a stated aim of catching the United States and China in robots that can work in factories and care settings.

Fiscal caution

This is an opening bid, not law. Markets remain wary of Japan's debt load, and unpriced item requests mean the final figure could still grow.

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