According to the Nikkei newspaper, the initiative—expected to be announced next week—will prioritize areas such as artificial intelligence, semiconductors, and space development. The government aims to leverage public spending to stimulate private sector investment, positioning Japan as a leader in advanced technologies.

Officials are considering a multi-year financing framework to ensure stable funding for projects tied to economic security. Part of the plan may involve issuing transitional bonds to cover temporary funding needs, with repayment mechanisms designed to balance increased spending against fiscal discipline. Japan’s public debt remains among the highest in the developed world, making financial sustainability a key concern.

The report noted that the government sees the strategy as a cornerstone of long-term growth, aligning industrial policy with national security objectives. No immediate comment was issued by the Prime Minister’s office, Reuters reported.