Insider Brief
- Japan plans to allocate about ¥400 billion ($2.6 billion) in a supplementary budget to advance quantum technology, artificial intelligence and nuclear fusion, according to The Japan News.
- Roughly ¥130 billion ($855 million) will support quantum research, including new R&D bases at AIST and enhanced collaboration among domestic hubs.
- Additional funding includes about ¥190 billion ($1.25 billion) for AI initiatives and more than ¥100 billion ($660 million) for fusion research and related startup support.
Japan is preparing a major funding surge for quantum technology, artificial intelligence and nuclear fusion as it tries to secure an edge in fields that governments view as central to future economic and national security, according to reporting from The Japan News.
The government plans to allocate roughly ¥400 billion — about $2.6 billion — in this fiscal year’s supplementary budget to advance work across the three areas. The outlay represents more than a 50% increase from the prior year’s supplemental allocation and reflects Prime Minister Sanae Takaichi’s broader effort to position Japan as a leader in technologies expected to shape global competitiveness.
Quantum Technology Push
Quantum technology receives one of the most prominent boosts with nearly ¥130 billion ($855 million) set aside for research into systems that draw on the physics of atoms and particles to enable new forms of computing and secure communications, The Japan News reports.
The package includes ¥100.4 billion ($660 million) to build research and development bases at the National Institute of Advanced Industrial Science and Technology, a national research organization with labs across the country. Another ¥3.3 billion ($22 million) would strengthen cooperation among Japan’s domestic quantum hubs, reflecting a push to coordinate work that is now scattered across universities and national laboratories.
Japan’s plan signals that it intends to remain a serious player as these technologies move from experimental devices toward early commercial use.
AI, Fusion Investments
Artificial intelligence accounts for the largest share of spending — about ¥190 billion ($1.25 billion) — and targets areas where algorithms can speed up scientific research, analyze large datasets and automate everyday tasks. Funds include ¥45 billion ($296 million) for using AI to support scientific discovery, ¥25.3 billion ($167 million) for AI-powered robots and autonomous driving technologies, and ¥4.4 billion ($29 million) to help government agencies adopt AI tools.
According to the newspaper, the strategy mirrors global efforts to use machine learning to raise productivity and offset labor shortages, with Japan aiming to apply the technology across industry and government services.
Nuclear fusion, which generates energy by fusing atomic nuclei, is the third pillar. While the technology remains unproven for commercial power, it continues to attract government funding due to its potential as a carbon-free energy source. More than ¥100 billion ($660 million) is expected to be secured for fusion projects when including spending planned beyond this fiscal year, The Japan News reported.
To speed domestic innovation, ¥60 billion ($395 million) would support startups over three years, and ¥32.6 billion ($214 million) would upgrade shared test facilities at public institutions such as the National Institute for Fusion Science.
