2026年日本数字国家报告 Digital Nations 2026 Accelerating the digital leap in Japan

DigitalNations2026

Acceleratingthe

digitalleapinJapan

GSMA

TheGSMAisaglobalorganisationunifyingthe

mobileecosystemtodiscover,developanddeliver

innovationfoundationaltopositivebusiness

environmentsandsocietalchange.Ourvisionis

tounlockthefullpowerofconnectivitysothat

people,industryandsocietythrive.Representing

mobileoperatorsandorganisationsacrossthe

mobileecosystemandadjacentindustries,the

GSMAdeliversforitsmembersacrossthreebroad

pillars:ConnectivityforGood,IndustryServices

andSolutions,andOutreach.Thisactivityincludes

advancingpolicy,tacklingtoday’sbiggestsocietal

challenges,underpinningthetechnologyand

interoperabilitythatmakemobilework,andprovidingtheworld’slargestplatformtoconvenethemobile

ecosystemattheMWCandM360seriesofevents.

Weinviteyoutofindoutmoreat

G与A

Intelligence

GSMAIntelligenceisthedefinitivesourceofglobalmobileoperatordata,analysisandforecasts,andpublisherofauthoritativeindustryreportsand

research.Ourdatacoverseveryoperatorgroup,networkandMVNOineverycountryworldwide

–fromAfghanistantoZimbabwe.Itisthemost

accurateandcompletesetofindustrymetrics

available,comprisingtensofmillionsofindividualdatapoints,updateddaily.

GSMAIntelligenceisreliedonbyleadingoperators,vendors,regulators,financialinstitutionsandthird-partyindustryplayers,tosupportstrategicdecision-makingandlong-terminvestmentplanning.The

dataisusedasanindustryreferencepointandisfrequentlycitedbythemediaandbytheindustryitself.

Ourteamofanalystsandexpertsproduceregularthought-leadingresearchreportsacrossarangeofindustrytopics.

info@

Authors

KenechiOkeleke,SeniorDirector

CelineYuan,SeniorAnalyst,ChinaandAsiaPacific

Contributors

JeanetteWhyte,HeadofPolicyandExternalAffairs,AsiaPacific

YoungBahn,PolicyDirectorforAdvancedTechnologiesandDigitalMarkets,AsiaPacific

PublishedApril2026©2026–GSMA.

1/26

Contents

Executivesummary2

1Japan’spathtothedigitalera4

1.1Alegacyofleadershipininnovation5

1.2Mobileasthefoundationforthedigitalera6

1.3Theimpactofthedigitalclifftakeseffect7

2Movingfromlegacytodigitalleap8

2.1Arenewedfocusondigitalisation9

2.2Strategicpillars10

3

12

AssessingJapan’sprogressusingtheDigitalNationsIndex

4Realisingdigitalleadershipambitions19

4.1Comparativeadvantages21

4.2Globalbestpractices22

4.3Internationalcooperation24

Executivesummary

3/26

Alegacyofinnovationchallengedbya‘digitalcliff’

Japanhaslongbeenrecognisedasagloballeaderin

technologicalinnovation–alegacythatspanscenturiesandcontinuestoshapeitsmodernindustrialand

digitalcapabilities.Acombinationoffactors,includingforward-lookinggovernmentpoliciesandastrong

emphasisonscienceeducation,enabledJapan’s

rapidindustrialisationandpositioneditforleadershipinemergingtechnologies.However,in2018,Japan’sMinistryofEconomy,TradeandIndustry(METI)

publishedtheresultsofalandmarkinvestigationintothenation’sdigitalinfrastructure,warningthatthecountry

washeadingtowardsa‘digitalcliff’by2025.

ForJapan,2026marksacriticalpoint,asthechallengesidentifiedbyMETIarepredictedtoreachapeak

andimpacteconomicperformance.Italsomarks10yearssincetheimplementationofSociety5.0–the

government’sflagshipvisionfora“SuperSmart

Society”.Althoughfulldisruptionappearstohavebeenavoided,Japan’sglobalcompetitivenesshasfeltthe

impactofthedigitalcliff.Thecountry’saggregatescoreof76outof100intheDigitalNationsIndexindicates

considerableroomforfurtherprogress.

TheJapanesegovernmentandprivatesectorhave

intensifiedtheireffortstomakeadecisive‘digitalleap’

–ashiftawayfromtheincrementalmodernisation

oflegacysystemstowardsabold,comprehensive

transformationaimedatestablishingafullyintegrated,human-centreddigitalnation.Thisrenewedfocuson

digitalisationisbroughttolifebyrecentinitiativessuchasthegovernment’s17strategicfocusareas,which

highlightAI,semiconductorsandcybersecurityaspillarsofcomprehensivenationalpower.

Fromlegacytoleap:Japan’spathtodigitalleadership

Japan’sdigitalleaphasevolvedintoastrategic

endeavourtorepositionthecountryasagloballeader

inthedigitalera.Itpresentstheopportunitytoshift

frombeingprimarilyatechnologyadoptertobecomingastandardssetterfordigitalnations.Achievingthis

willdependonJapan’sabilitytoharnessitsdistinctive

competitiveadvantagesandadoptinternationalbest

practicesthroughcollaborativeplatforms.Specifically,itinvolvesthefollowing:

•Capitalisingoncomparativeadvantages,

includingnext-generationconnectivitybeyond5G,

frontiertechnologydeploymentsuchasquantum

andautonomoussystems,anddemographic

technologyleadership.Thisalsoincludesoperator

contributions,suchasNTTDocomo’sAI-enabled

networkoptimisation,KDDI’ssatellite-to-smartphoneconnectivity,SoftBank’sexpansionofAI-ready

datacentres,andRakutenMobile’scloud-nativeinnovations.

•Applyingglobalbestpracticestoaccelerate

infrastructuredeployment,strengthenadigital-

firstcultureacrosssectors,andbuilddigitaltrustbylearningfromleadingpeersinAsiaPacificandbeyond.

•UsinginternationalcooperationtoshapeglobalnormsforAI,cybersecurity,semiconductorsandfutureconnectivityincluding6G.Thisshould

ensureJapanesestrengthsinfluenceinternationalframeworksratherthanremainingdomestically

contained.

01

Japan’spathtothedigitalera

5/26

1.1

Alegacyofleadershipininnovation

Japanhaslongbeenrecognisedasagloballeaderin

technologicalinnovation–alegacythatspanscenturiesandcontinuestoshapeitsmodernindustrialanddigitalcapabilities.Thecountry’straditionofengineering

ingenuitycanbetracedbacktotheEdoperiod

(1603–1868),whenartisansdevelopedsophisticated

karakuripuppetspoweredbywoodengears,springs

andcounterweights.Thisearlymasteryofmechanical

designlaidthegroundworkforJapan’slaterstrengths

inautomationandminiaturisation.Themomentum

acceleratedduringtheMeijieraandearly20thcentury,markedbyinventionssuchasthemyriadyearclock,thedrycellbatteryandtheestablishmentofJapan’sfirst

telegraphlines.

Buildingontheindustrialfoundationsestablished

inthe19thandearly20thcenturies,Japan’s

technologicalascentacceleratedinthelatterhalfof

the20thcentury,evolvingintogloballeadershipin

electronics,automotiveengineeringandrobotics.This

transformationwasunderpinnedbyforward-looking

governmentpolicies,sustainedinvestmentinR&D,a

strongemphasisonscienceeducation,andthestrategicadaptationofforeigntechnologies.Culturalfactors,

particularlyacommitmenttoprecision,craftsmanship

andcontinuousimprovement,reinforcedJapan’sabilitytoscaleinnovationandmaintainglobalcompetitiveness.

Thesedevelopmentscultivatedthetechnicalskills,

institutionalcapacityandinnovationculturethat

enabledJapan’srapidindustrialisationandpositioneditforleadershipinemergingtechnologies.Theyalso

establishedthetechnologicalbasefromwhichJapanenteredthedigitalageandshapedthetrajectoryof

itsmoderndigitaleconomy.Japan’srobustinnovationecosystemhashelpedshapemanyofthetechnologiesthatdefinetoday’sdigitalworld,seedingtheglobal

shifttowardsmobilecomputing,portablemedia

consumption,smarthomeautomationandminiaturisedelectronics(seeTable1).

Table1

ExamplesofJapaneseinnovationsthatunderpinmoderndigitalsolutions

Innovation

Year

Company

Impactonmoderndigitalsolutions

Compactdisc

1982

Sony

Pavedthewayfordigitalfileformats(MP3,AAC)andopticalstoragetechnologies(suchasBlu-ray)usedinthepre-streamingera.

Emoji

1999

NTT

Designedforlimitedscreenspacebutevolvedintothe

Docomo

universallanguageofdigitalcommunicationandsocialmedia.

Flashmemory

1980

Toshiba

Akeycomponentofmobiletechnologythatdevicesnowrelyonforthestorageforapps,photosandOS.

i-Mode

1999

NTT

Apioneeringmobileinternetservicethatofferedinternet

Docomo

access,email,webbrowsingandappsonfeaturephones.

Lithium-ionbattery

1991

Sony

Allowedforhigh-energydensityinaslimformfactor,supportingelectricvehicles,smartphonesand

wearables.

QRcode

Source:GSMAIntelligence

1994

DensoWave

Originallyinventedtotrackcarpartsinfactoriesbut

nowtheglobalbridgebetweenthephysicalanddigitalworlds,withapplicationsinpayments,marketing,ID

verificationandotherareas.

6/26

1.2

Mobileasthefoundationforthedigitalera

Japanenteredthedigitalerawithinnovationsin

consumerelectronicsandearlyadvancesinmobile

andwebtechnologies,establishingastrongfoundationfortheexpansionofitsdigitaleconomy.Thesewere

complementedbypolicyframeworksaimedatbuildinganadvanceddigitaleconomy.Forexample,thee-JapanStrategyI&II1(2001–2005)acceleratedtherolloutof

high-speedbroadbandandpromotedtheadoptionof

digitalservicesacrosssectors,whilethePriorityPolicyProgram2(2006)aimedtocreatea“ubiquitousnetworksociety”.Morerecently,Japan’sSociety5.0initiative3(2016),aflagshipvisionfora“SuperSmartSociety”,

hassoughttointegratecyberspaceandphysicalspacethroughAI,IoTandroboticstoaddressstructural

challengessuchasanageingpopulationandlabourshortages.

Drivenbythesefactors,Japan’sdigitaleconomyhasgrownsteadilyoverthelastthreedecades,reflectedinrapiddigitaltransformationacrosskeyservice

industries,enablingtheriseofdigitalpayments,

e-commerce,telemedicineandotherservices.Digitalpayments,forexample,expandedfromaccountingforjust13.2%oftotaltransactionsin2010to42.8%by

2024,withdigitalconsumerspendreachingJPY126.7

trillion($803billion)thatyear.4A2024surveybyMETIfurtherhighlightsthemomentum:Japan’sB2CandB2Be-commercemarketsreachedJPY26.1trillion($165

billion)andJPY514.4trillion($3.3trillion)respectivelyin2024,representingyear-on-yeargrowthof5.1%and10.6%.5Japanhasalsoestablisheditselfasaglobal

leaderinsmartcityinfrastructure,IoTecosystemsandautonomousmobility.

Mobilenetworks,particularly5G,formthebackbone

ofgovernmenteffortstointegrateadvanceddigital

technologiesacrosstheeconomyinlinewiththe

objectivesofSociety5.0.Mobileapps,mobilecloud

services,mobilepaymentsandmobileenterprisetools

havebecometheprimarychannelsthroughwhich

digitalbusinessmodelsscaleinJapan.Atthesame

time,mobile-linkedwearablesenableremotehealth

monitoring,alleviatingpressureonhospitals,while

5G-connectedsensorsanddronesprovidereal-time

dataforemergencyresponseanddisaster-relief

operations,enhancingJapan’sresilienceand

operationalreadinessincrisissituations.ArecentGSMAreportdetailshowmobileoperators,governmentand

thebroaderdigitalecosystemcollaborateandinnovatetodelivertheselife-savingservices.6

MobileinJapan:innumbers

90%

subscriberpenetration

83%

mobileinternetadoption

96%

5Gcoveragewithover302,0005Gbasestations,overhalfof

whichare5Gstandalone(SA)capable

5Gadoption

55%

4Gadoption

44%

$144bn

incumulativemobilecapexoverthelastdecade

Source:GSMAIntelligence

1Forfurtherinformation,seee-JapanStrategyIIAccelerationPackage,at

japan.kantei.go.jp

.

2Forfurtherinformation,seePriorityPolicyProgram2006at

japan.kantei.go.jp

.

3Forfurtherinformation,seeSociety5.0

atwww8.cao.go.jp/cstp/English

.

4“Japan’sstrategicapproachtoadigitalyen”,EastAsiaForum,July2025

5ResultsofFY2024E-CommerceMarketSurveyCompiled,METI,2025

6

Japan’sEarlyWarningSystem:TheRoleofMobileNetworkOperators

,GSMA,2026

7/26

1.3

Theimpactofthedigitalclifftakeseffect

In2018,METIpublishedtheresultsofalandmarkinvestigationintothenation’sdigitalinfrastructure.ItwarnedthatJapanwasheadingtowardsa

‘digitalcliff’by2025.

7

Theinvestigationpredicted

substantialeconomiclossesandadeclineinglobal

competitivenessastheimpactbegantotakeholdfromlegacyITsystems,acuteshortagesofdigitaltalent,

deeplyrootedculturalandorganisationalbarriers,

fragmentedtechnologyadoption,andescalating

cybersecurityvulnerabilities.Manyofthesechallengeshavemovedfromforecaststoobservableconstraintsonnationalperformance.However,fulldisruptionappearstohavebeenavoidedthroughincrementalsystem

upgradesandtargetedpolicyinterventions.

TheCovid-19pandemicwasthefirstmajorstresstest,revealingthestructuralfragilityofJapan’s

analogue-heavy,public-administrationsystems.

Criticalprocessesstillreliedonobsoletemediasuch

asfloppydisks,CDsandfaxmachines,requiring

manual,in-personsubmissionsandslowingthedeliveryofessentialservices.Thesebottleneckshindered

real-timeinformationsharingbetweenlocalauthoritiesandcentralministries,delayingdecision-makingata

momentwhenrapidcoordinationwasvital.Itwasan

earlydemonstrationofhowlegacyinfrastructurecouldunderminenationalresilience.

Similarpatternshavepersisted,increasingmaintenancecostsanddisruptingbusinessoperations.Forexample,amajorbankexperiencedmultiplesystemfailuresin

2021duetofaultsinageingITinfrastructure,whilea

ransomwareattackexploitedoutdatedVPNhardwareto

crippleoperationsatthePortofNagoyain2023.DelaysintheinitialrolloutoftheMyNumberdigitalIDsystem

occurredbecausemunicipalofficesreliedonlegacy

databases,andmanyorganisations(particularlySMEs)continuetodependonobsoleteITarchitectures,such

asCOBOL-basedsystemsandmainframecomputers

frombeforethecloudera.Thishascontributedtoa

wideningknowledgegap,asthepoolofexpertsfamiliarwiththesesystemscontinuestoshrink.

Japan’sglobalcompetitivenesshasalsobeenimpactedbythedigitalcliff,leavingthecountrybehindmany

regionalandglobalpeersatatimewhendigital

capabilitiesarecentraltoeconomicandsocialprogress.ThisisreflectedinJapan’sstagnantproductivity

andawideningdigitaldeficitovermuchofthepast

decade.Forinstance,thecountry’srelativelyslow

transitiontodigitalpaymentshasleftittrailingcountriessuchasSingaporeandSouthKorea,bothofwhich

haveestablishedhighlyintegrateddigitalpayment

ecosystemsthatdrivegrowthindigitalcommerce

andfintechinnovation.Whiledigitalpaymentsstill

accountforlessthanhalfoftransactionsinJapan,the

.

proportionexceeds90%inSingaporeandSouthKorea8

Japanranked30thoutof69countriesinIMD’s2025

WorldDigitalCompetitivenessRanking.

9

Thiswasan

improvementofonepositionfromthepreviousyearbutstillwellbehindregionalpeerssuchasSingapore(3rd),HongKong(4th),Taiwan(10th),China(12th)andSouthKorea(15th),underliningtherisktoJapan’spositionasaglobaleconomicandtechnologicalleader.

7Formoreinformation(Japanese),

seewww.meti.go.jp/policy/it_policy/dx/20180907_01.pdf

8Statista

9WorldDigitalCompetitivenessRanking2025,IMD,2025

02

Movingfromlegacytodigitalleap

9/26

2.1

Arenewedfocusondigitalisation

InDecember2025,Japanapproveditsfirst

nationalAIstrategy–theAIBasicPlan.

10

This

aimstopositionthecountryasthe“world’smostAI-friendlynation”bypairingrapidinnovation

withstrongriskmanagement.Branded“Japan

rebooted”through“trustworthyAI”,thestrategypresentsacomprehensiveagendatoaccelerateAIadoptionacrossgovernment,industryand

societywhileensuringtransparency,safetyandethicaluse.

ForJapan,2026marksacriticalpoint.ItisthefirstyearwhenthechallengesidentifiedbyMETIarepredictedtoreachtheirpeakandimpacteconomicperformance.Inthiscontext,thenation’sdigitaltransformationstands

atapivotaljuncturewhereitshistoricaltechnological

strengthsmustadapttoaddressnewdigitaland

demographicrealities.Asaresult,theJapanese

governmentandprivatesectorhaveintensifiedtheir

effortstomakeadecisivedigitalleap–ashiftaway

fromtheincrementalmodernisationoflegacysystemstowardsabold,comprehensivetransformationaimed

atestablishingafullyintegrated,human-centreddigitalnation.

InDecember2025,thegovernmentadopteda

newcybersecuritystrategyfortheperiodto2029,establishingasystemthatenablesthepolice,

MinistryofDefenceandSelf-DefenseForcestocollaborateinneutralisingcriticalattacks.

ThisfollowstheenactmentinMayoflegislationintroducingActiveCyberDefence(ACD),whichaimstomonitordigitalcommunicationsduringpeacetimeforgovernment-centreddefence

anddeterrence.InJuly2025,thegovernmentestablishedtheNationalCybersecurityOffice(NCO)totransitionfromareactivetoapre-

emptivecyberdefencestrategy.

WhileSociety5.0(nowinits10thyearsince

implementation)remainscentraltoJapan’sdigitalisationambitions,thegovernmenthasrecentlyannounced

keyinitiativesthathighlightarenewedemphasisondigitalisationandanintentiontorepositionJapanforgloballeadershipinthedigitalera.

InJune2025,thegovernmentdevisedthe

DigitalInfrastructureDevelopmentPlan2030,

11

whichpresentsaunifiedroadmaptobuildthe

foundationalinfrastructurerequiredfortheAI

era.Theplanaimstodeliverintegrated,resilientandhigh-capacityinfrastructureby2030,with

anemphasisontheexpansionofdatacentres

andsubmarinecablelandingpointsbeyondmajormetropolitanareas,anduniversalaccesstohigh-speedconnectivity.

FollowingtheFebruary2026electionsin

Japan,thegovernmentreaffirmeditsfocuson

17strategicfieldstodriveeconomicgrowth

andstrengthensupply-chainresilience.Digital

technologiesareframednotmerelyasenginesofgrowthbutaspillarsofcomprehensivenational

powerunderpinningautonomyandpeace.

AlongsideAI,semiconductorsandcybersecurity,thestrategyplacesarenewedemphasisondigitalinfrastructure,suchassubseacables,asacriticalcomponentofstrategicautonomyamidrising

geopoliticalrisks.

InJune2025,thegovernmentapprovedthe

PriorityPlanfortheAdvancementofaDigital

Society,whichestablishesJapan’sshort-to

medium-termdigitalpolicyagendafor2025–

2030.

12

LedbytheDigitalAgency,itoutlinestheannualactionsrequiredtoacceleratenationwidedigitaltransformationandaddressstructural

challengessuchaslabourshortages,regionaldisparitiesandtheneedforfasterAIadoption.

InJanuary2026,thegovernmentoutlinedits

digitalisationprioritiesfortheyear,emphasisingashiftfromgovernment-ledtouser-driven

digitalreform.Prioritiesincludeenhancingthe

functionalityofMyNumberCards(whichhave

nowexceeded100millionincirculation,with

approximately80%ofthepopulationpossessingone).TheMyNumberCardswillbeimplementedaspartofalargerMyNumberdigitalIDsystem,incorporatinghealthcareandgovernment-to-

personpaymentservices.ThegovernmentalsointendstolaunchtheMynaApptofacilitate

smartphone-basedidentityverification.

10Forfurtherinformation,seeArtificialIntelligenceBasicPlan

atwww8.cao.go.jp/cstp/ai/

.

11“PublicationofDigitalInfrastructureDevelopmentPlanfor2030”,MinistryofInternalAffairsandCommunications,Japan,June2025

12PriorityPlanfortheAdvancementofaDigitalSociety,TheDigitalAgencyofJapan,2025

10/26

2.2

Strategicpillars

AcloserlookatJapan’srecentdigitalpoliciesand

initiativesrevealsseveralstrategicpillarsandunderlyingfactorssupportingthecountry’saccelerateddigital

leap.Thefactorsreflectthegovernment’sambition

andcommitment,andcarrysignificantimplicationsforJapan’spositionontheglobalstage.

Awhole-of-governmentapproach

Thesystemic,cross-ministerialnatureofthechallengesJapanfacesmeanstheycannotberesolvedthrough

isolated,ministry-levelreform.Meaningfuldigital

transformationdemandstightlycoordinatedaction

acrossgovernment,industryandsociety.Reflecting

thisneedforintegration,manyofJapan’skeydigital

initiativesaredirectedfromthehighestlevelsof

government.Forexample,theimplementationoftheAIBasicPlanisoverseenbytheAIStrategicHeadquarters,chairedbytheprimeminister,ensuringthestrategy

canswiftlyadapttotechnologicalchangeandmaintaincoherenceacrossministries.

Public–privateinvestment

Modernisinglegacysystems,buildingnext-generationinfrastructureandenablingAI-drivenpublicservices

allrequirelong-term,coordinatedandcapital-intensivefunding–demandsthatarefartoogreatforeither

governmentorindustrytomeetalone.Consequently,Japan’sdigitalleapdependsonacloselycoordinatedinvestmentmodelinvolvingthepublicandprivate

sectors.

InNovember2024,thegovernmentsetapublic-

privateinvestmenttargetofmorethanJPY50trillion($317billion)overthenextdecadetorevitaliseits

semiconductorandAIindustries.

13

Ofthis,atleast

JPY10trillion($63billion)willcomefromdirectstate

supportthroughtofiscal2030,aimedatcatalysinga

furtherJPY40trillion($254billion)ofprivate-sector

investment.Forfiscal2026,METIquadrupleditsbudgetforAIandchipstoapproximatelyJPY1.23trillion

($7.9billion).

14

InFebruary2026,TaiwanesefirmTSMCannouncedplanstomass-produceadvanced3-nanometrechipsinKumamoto,southernJapan,inaprojectworth

$17billion.

15

Japan’sdigitalinvestmentpushhasbeen

reinforcedbydomesticmobileoperatorstoo.As

examples,NTTDocomoisscaling5GandAI-enabled

networkoptimisation,KDDIisintegratingsatellite-to-

smartphoneconnectivity,SoftBankisexpandingdata-centrecapacitytosupportAIworkloads,andRakuten

Mobile’slow-cost,cloud-nativemodeldemonstratesanalternativepathtoefficientinfrastructuredeployment.

Digitalsovereignty

Afterdecadesofrelianceonforeignprovidersfor

softwareandcloudinfrastructure,Japanisnow

movingrapidlytoreassertcontroloveritsdata,criticaltechnologiesandsupplychains.Digitalsovereignty

servesasastrategicenablerofresilience,autonomy

andsustainablegrowthamidgeopoliticaltensions,

supply-chainfragilityandintensifyingcompetitionin

AIandsemiconductors.Forexample,METIplansto

establishajointventurewithmorethan10domestic

companies,includingSoftBankandPreferredNetworks,todevelopahomegrownAImodel.Theinitiativewill

bebackedbyJPY1trillion($6.3billion)inpublicfundingoverfiveyears,beginninginfiscal2026.Inparallel,

SoftBankisindiscussionstoinvestJPY2trillion

($12.6billion)oversixyearsindomesticdatacentrestosupportthedevelopmentofhomegrownAImodels.

16

RapidusexemplifiesJapan’sdigitalsovereigntyambitions

InAugust2022,RapidusCorporationwasestablishedasanationalinitiativetoreviveJapan’sadvanced

semiconductormanufacturingcapabilitiesandreducerelianceonforeignsuppliers.Heavilybackedbythe

Japanesegovernmentandmajordomesticcorporations,includingToyota,SonyandSoftBank,Rapidusaimstomass-producecutting-edge2-nanometerchipsby2027,withfull-scaleproductiontargetedfor2028.

TheJapanesegovernment,nowalsothelargestshareholderinthecompany,investedJPY100billion($640million)infiscal2025,withprivateinvestmentfrommorethan30companiesreachingJPY167.6billion($1.1billion).

17

TheprojectalignscloselywithJapan’sbroadereconomicsecurityanddigitalrenewalstrategies,seekingtosecuredomesticproductionofadvancedsemiconductorsforAIaccelerators,automotive

applicationsandotherhigh-techindustriesamidgrowingglobalsupply-chainrisks.

13“Japantorollout$65bninsupportforchips,AI”,NikkeiAsia,November2024

14“JapantoquadruplespendingsupportforchipsandAIinbudget”,TheJapanTimes,December2025

15“TSMCCEOflags3-nanometrechipproductioninJapan,investmentreportedat$17billion”,Reuters,February2026

16“JapanCommitsUSD20BilliontoBuildaHomegrownModel”,TheEconomySenate,December2025

17“Japangovernmenttohold10%votingrightsinRapidusbutwithvetopower”,NikkeiAsia,February2026

11/26

Cybersecurity

AsJapan’scriticalinfrastructure,includingenergygrids,transportnetworks,telecoms,financeandhealthcare,

becomesincreasinglydigitallyintegratedandexposed

tomaliciousactors,cybersecuritywillremainastrategicpillarinsupportofthedigitalleap.Reflectingthis

priority,thegovernment’sgrowthstrategyexplicitly

designatescybersecurityasastrategicinvestmentarea,alongsidesemiconductorsandquantumtechnologies.

KeymeasurestostrengthenJapan’scyberposture

includetheenactmentoftheACDAct,whichempowersthegovernmenttomonitorexternalcommunicationsandproactivelyneutralisethreatsbeforetheyreachcriticalinfrastructure,andtheproposedadoptionofsecure-by-designprinciplestoalignJapanwithinternationalbest

practices,includingthoseintheUSandEU.

Policyreform

Japan’smoveawayfromlegacysystemstowards

becominganadvanceddigitalnationdependsonthe

introductiono