Japan Unveils First AI Basic Plan: 61 Priority Technologies, 30% Global AI Robot Share by 2040
The Japanese government will announce a major industrial policy at the Japan Growth Strategy Council, chaired by Prime Minister Sanae Takaichi, as early as March 9-10: selecting 61 priority products and technologies from "17 strategic fields" for intensive public-private investment. AI robots are designated as a core track, targeting over 30% global market share by 2040, positioning Japan as a "third powerhouse" alongside the U.S. and China.
For semiconductors, Japan sets a target of ¥40 trillion in domestic sales by 2040. For drones, Japan will establish domestic mass-production bases. The 61 items were selected considering economic security perspectives—particularly areas where Japan heavily relies on foreign supply.
This is part of Japan's first comprehensive AI Basic Plan approved in March 2026, outlining AI development vision through 2030 with emphasis on "Physical AI"—integrating generative AI with robotics for manufacturing and elderly care.
Japan Unveils First AI Basic Plan
The Japanese government will announce 61 priority products and technologies from "17 strategic fields" at the Japan Growth Strategy Council. AI robots target 30% global market share by 2040, with emphasis on component autonomy, humanoid robot mass production, and Physical AI integration.
Semiconductor sales target: ¥40 trillion by 2040. Drone production bases for mass manufacturing. Japan's soft-law regulatory approach balances innovation-first priorities with risk management, contrasting with U.S. deregulation and EU's AI Act strengthening.
In-Depth Analysis and Industry Outlook
From a broader perspective, this development reflects the accelerating trend of AI technology transitioning from laboratories to industrial applications. Industry analysts widely agree that 2026 will be a pivotal year for AI commercialization. On the technical front, large model inference efficiency continues to improve while deployment costs decline, enabling more SMEs to access advanced AI capabilities. On the market front, enterprise expectations for AI investment returns are shifting from long-term strategic value to short-term quantifiable gains.
However, the rapid proliferation of AI also brings new challenges: increasing complexity of data privacy protection, growing demands for AI decision transparency, and difficulties in cross-border AI governance coordination. Regulatory authorities across multiple countries are closely monitoring these developments, attempting to balance innovation promotion with risk prevention. For investors, identifying AI companies with truly sustainable competitive advantages has become increasingly critical as the market transitions from hype to value validation.
From a supply chain perspective, the upstream infrastructure layer is experiencing consolidation and restructuring, with leading companies expanding competitive barriers through vertical integration. The midstream platform layer sees a flourishing open-source ecosystem that lowers barriers to AI application development. The downstream application layer shows accelerating AI penetration across traditional industries including finance, healthcare, education, and manufacturing.
Additionally, talent competition has become a critical bottleneck for AI industry development. The global war for top AI researchers is intensifying, with governments worldwide introducing policies to attract AI talent. Industry-academia collaborative innovation models are being promoted globally, with the potential to accelerate the industrialization of AI technology.