Japan Unveils ¥400 Billion Supplementary Budget for Quantum, AI, and Nuclear Fusion Research

Japan Commits Billions to Future Technologies

Japan has announced a significant financial commitment, allocating approximately ¥400 billion (about $2.6 billion) in a supplementary budget to accelerate research and development in three pivotal technological domains: quantum technology, artificial intelligence (AI), and nuclear fusion. This substantial investment, representing more than a 50% increase from the previous year's supplemental allocation, underscores Japan's strategic intent to secure a leading edge in fields deemed crucial for future economic growth and national security.

Quantum Technology Receives Major Boost

A significant portion of the new budget, roughly ¥130 billion (approximately $855 million), is earmarked for quantum research. This funding is designed to advance systems leveraging the physics of atoms and particles for next-generation computing and secure communications. Key allocations within this segment include:

• ¥100.4 billion ($660 million) for establishing new research and development bases at the National Institute of Advanced Industrial Science and Technology (AIST).
• ¥3.3 billion ($22 million) to enhance collaboration and coordination among Japan's existing domestic quantum research hubs.

Advancing Artificial Intelligence Initiatives

Artificial intelligence initiatives are set to receive approximately ¥190 billion (about $1.25 billion), making it the largest share of the new spending. This funding targets areas where AI can significantly accelerate scientific research, analyze vast datasets, and automate daily tasks. Specific investments include:

• ¥45 billion ($296 million) dedicated to applying AI in scientific discovery.
• ¥25.3 billion ($167 million) for the development of AI-powered robots and autonomous driving technologies.
• ¥4.4 billion ($29 million) aimed at promoting the adoption of AI tools within government agencies.

This strategy aligns with global efforts to utilize machine learning to boost productivity and address labor shortages, with Japan aiming to integrate AI across various industries and government services.

Nuclear Fusion Ambitions Strengthened

More than ¥100 billion (about $660 million) has been allocated to nuclear fusion research, a field considered a promising source of carbon-free energy. Japan aims to test the use of nuclear fusion for power generation in the 2030s. The funding includes:

• ¥60 billion ($395 million) over three years to support startups engaged in fusion research.
• ¥32.6 billion ($214 million) for upgrading shared test facilities at public institutions, such as the National Institute for Fusion Science.

This investment reflects Prime Minister Sanae Takaichi's broader effort to position Japan as a leader in these transformative technologies, which are expected to shape global competitiveness and ensure long-term economic and national security.