Japanese Government Semiconductor Strategy Targets JPY 40 Trillion by 2040

Japan is accelerating efforts to strengthen its semiconductor sector as artificial intelligence and advanced digital technologies drive global demand for high-performance chips. Under the Japanese government semiconductor strategy, policymakers have introduced a long-term target of generating JPY 40 trillion in semiconductor sales produced domestically by 2040. The initiative expands earlier plans focused on revitalizing domestic chip manufacturing and improving technological competitiveness across multiple strategic industries.

New Long-Term Target for Japan’s Semiconductor Industry

The newly announced goal builds upon Japan’s previous semiconductor roadmap, which targeted JPY 15 trillion in domestic semiconductor sales by 2030. By setting a 2040 milestone, authorities are signaling a broader industrial strategy aimed at expanding manufacturing capacity and supporting advanced chip technologies. Demand for these semiconductors is expected to grow rapidly as artificial intelligence applications, robotics systems, and automotive electronics require increasingly sophisticated processing capabilities.

Strengthening Supply Chains and System-to-Silicon Development

Beyond advanced chips, the policy also emphasizes supply chain resilience for legacy semiconductors and electronic components that remain critical for automotive production and industrial equipment. The government plans to enhance capabilities in system-to-silicon design, enabling optimized integration of semiconductors into complex systems used in vehicles, robotics, and digital infrastructure. Officials have identified 61 priority technologies across 17 strategic sectors, with preliminary development roadmaps already prepared for 27 areas including emerging physical AI technologies.