Japan's METI Requests 7.7 Trillion Yen for FY2027, Targeting AI and Semiconductors

Japan's Ministry of Economy, Trade and Industry (METI) is requesting a total of approximately 7.7 trillion yen for the fiscal 2027 budget, covering both general and special accounts. The figure is about 2.5 times the fiscal 2026 initial budget, largely because the government has moved items previously financed through supplementary budgets into the initial budget. METI plans to concentrate investment on artificial intelligence (AI) and semiconductor development.

Within the budget request, the growth-investment framework, which carries no upper ceiling, amounts to about 4.5 trillion yen. Of this, roughly 1.4 trillion yen is earmarked for "physical AI" and robotics, covering machinery capable of autonomous operation. Around 680 billion yen is allocated to securing critical minerals, and about 220 billion yen to diversifying naphtha procurement. The request also covers defence-related spending to strengthen the production base for dual-use goods, as well as support for animation and other content industries.

The total, exceeding 7 trillion yen, is well above the combined level of the fiscal 2026 initial budget of approximately 3 trillion yen and the fiscal 2025 supplementary budget of about 2.2 trillion yen.