Japan to Invest $2.3 Trillion in AI and Quantum Technologies by 2040, Boosting Semiconductors and Physical AI Robot Deployment

July 19, 2026

Forbes USA

Overview

Japan has launched a new national growth strategy, committing ¥370 trillion (approx. $2.3 trillion) in public and private investment across 17 strategic sectors by 2040. This initiative aims to reboot its innovation engine, focusing on areas like semiconductors, AI, quantum computing, and physical AI, including deploying 10 million AI-equipped robots by 2040. Fujitsu and RIKEN are collaborating on domestic superconducting quantum computers for an integrated ‘Made in Japan’ solution, while NVIDIA partners with RIKEN for AI/quantum fusion infrastructure.

In Depth

Key Findings

Japan has unveiled a sweeping 14-year national growth strategy, pledging a massive ¥370 trillion (approximately $2.3 trillion) in public and private investment across 17 strategic sectors by 2040. This ambitious initiative is designed to rejuvenate the nation’s innovation engine, addressing demographic challenges and strengthening its technological leadership. Key areas of focus include semiconductors, artificial intelligence (AI), quantum computing, and ‘physical AI,’ which entails deploying 10 million AI-equipped robots by 2040.

Technical / Clinical Details

Semiconductors are allocated the largest share of this investment, reflecting their foundational role in advanced technologies. In the quantum realm, Fujitsu and RIKEN are collaborating on developing domestic superconducting quantum computers, aiming for an integrated ‘Made in Japan’ solution that merges AI, quantum computing, and supercomputing capabilities. NVIDIA is also partnering with RIKEN to establish AI and quantum fusion as national infrastructure, featuring two new supercomputers equipped with the latest GPUs tailored for quantum computing. Practical advancements are already evident, with AI- and GPU-driven workflows demonstrating a 13.4x speedup over CPU-only nodes for molecular spectral analysis.

Background & Context

Facing significant demographic challenges, including a shrinking workforce, Japan is prioritizing technological innovation to boost productivity and maintain global competitiveness. This national growth strategy represents a comprehensive response to these pressures. Quantum computing, AI, and semiconductors are recognized as critical determinants in the global tech race, and Japan seeks to ensure its autonomy and leadership in these fields. The country is fostering a diverse quantum computing ecosystem, developing silicon spin, neutral atom, photonic, and cat qubit technologies, and integrating quantum systems with high-performance computing like the Fugaku supercomputer.

Strategic Significance & Outlook

This $2.3 trillion investment is projected to reboot Japan’s innovation engine, solidifying its position as a global technology leader by 2040. The convergence of quantum technologies and AI promises groundbreaking advancements in drug discovery, novel materials development, energy efficiency optimization, and financial risk management. Furthermore, the transition to post-quantum cryptography (PQC) is a pressing cybersecurity priority, integral to strengthening Japan’s technological autonomy and national security. This strategy is expected to transform Japan’s industrial structure, creating new economic growth opportunities and reinforcing its long-term technological competitiveness.

Source: https://www.forbes.com/sites/drewbernstein/2026/07/15/japan-bets-23-trillion-to-reboot-its-innovation-engine/

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