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Find similar grantsMETI AI Budget is sponsored by Japan's Ministry of Economy, Trade and Industry (METI). Japan's METI has allocated ¥1. 23 trillion for AI and semiconductor development in the fiscal year 2026.
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METI budget hike lifts Japan chip and AI funding for FY 2026 ... METI budget hike: Japan lifts chip and AI funding for FY 2026 Japan is set to expand industrial policy spending sharply in FY 2026, with the Ministry of Economy, Trade and Industry (METI) planning a roughly 50% rise in its overall allocation to about ¥3. 07 trillion.
The headline change is a much larger pot for semiconductors and artificial intelligence: about ¥1. 23 trillion, nearly four times the prior level. This METI budget hike is part of Tokyo’s effort to lock in more predictable, “base” funding for frontier tech rather than relying on one-off supplementary packages.
What the METI budget hike pays for Within the ¥1. 23 trillion envelope, the ministry is earmarking ¥150 billion for Rapidus, Japan’s state-backed push to establish advanced logic manufacturing, and ¥387. 3 billion for domestic AI development, including foundation models, data infrastructure, and “physical AI” applications where software controls robots and industrial machinery, according to a Taipei Times report .
The plan also sets aside ¥5 billion for securing key minerals (including rare earths) and ¥122 billion for decarbonisation measures, including work related to next-generation nuclear power. How it fits into the wider fiscal picture The ministry’s expansion sits inside a larger government plan that is being framed as both growth policy and strategic resilience.
Japan’s cabinet has approved a record national plan for the fiscal year starting April, with the package now heading to parliament for debate and passage, as covered in Reuters reporting . One notable signal in the METI budget hike story is the intent to fund more of the chip and AI agenda through regular appropriations, which should reduce end-of-year uncertainty for long-cycle projects such as fabs, tooling, and ecosystem build-out.
What this means for Rapidus and the supply chain For Europe’s electronics supply chain watchers, the immediate question is execution: whether sustained funding accelerates tooling, pilot-line milestones, and partner pull-through for Rapidus, and whether Japan’s larger AI push translates into local demand for advanced packaging, memory, and data-centre build-outs. (For background, see eeNews Europe’s earlier Rapidus coverage .)
Either way, the METI budget hike puts hard numbers behind Tokyo’s claim that chips and AI are now treated as core industrial infrastructure, not just R&D line items.
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According to the current listing, eligibility includes: Japanese companies and research institutions in AI and semiconductor fields. Confirm the full requirements in the official notice before applying.
METI AI Budget is funded by Japan's Ministry of Economy, Trade and Industry (METI). Verify program details on the funder's official page before applying.
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