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The government has finalized a plan to invest over 370 trillion yen, jointly from the public and private sectors, in strategic areas such as AI and semiconductors as part of its new growth strategy. This will support fields such as physical AI. ■ Promoting the Development of Domestic Physical AI At the Growth Strategy Conference on the 30th of last month, Prime Minister Sanae Takaichi stated the following: "We will move away from excessive austerity measures and promote domestic investment through a bold policy package, expanding consumption and corporate profits through wage increases. This will lead to further investment expansion and accelerate a virtuous cycle of investment and wage increases." The draft growth strategy includes investing over 370 trillion yen, jointly from the public and private sectors, in 17 strategic areas, including AI and semiconductors, by fiscal year 2040. Among these, the "development of domestic physical AI" is attracting particular attention. Minister of Economy, Trade and Industry, Ryosei Akazawa: "The consortium of Noetra and the National Institute of Advanced Industrial Science and Technology (AIST) has been selected." Noetra (formerly Japan AI Platform Model Development), which will receive support, is a company established primarily by SoftBank, NEC, Sony Group, and Honda. It promotes the spread of "physical AI," where AI analyzes and makes decisions based on information from sensors and cameras to autonomously control robots and machines. ■ Planned support of approximately 1 trillion yen Japan has fallen significantly behind in AI research and development. The government appears to aim to catch up by supporting the field of "physical AI," where global competition is intensifying, thereby supporting Japanese companies with strengths in manufacturing. Specifically, the plan is to develop foundational technologies for advanced Japanese language understanding, logical reasoning, and instruction execution. Minister of Economy, Trade and Industry Akazawa: "We will take the lead globally in building and developing a data infrastructure for physical AI and robots that leverages Japan's strengths." The Ministry of Economy, Trade and Industry plans to provide support totaling approximately 1 trillion yen over the five years starting in fiscal year 2026. (From the broadcast on July 1, 2026) [TV Asahi NEWS] https://news.tv-asahi.co.jp

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