On August 31, it was reported that Japan's Ministry of Economy, Trade and Industry plans to apply for a budget of up to 7.8 trillion yen (approximately $49 billion) to accelerate investment in strategic industries such as semiconductors and artificial intelligence, which are at the core of Prime Minister Sanae Takaichi's economic growth agenda. The budget request, submitted on Monday, will cover the fiscal year starting in April 2027. Previously, Sanae Takaichi has called for a combined public and private sector investment of 370 trillion yen in key industrial sectors over the next 14 years. This substantial budget request also reflects reforms in Japan's budgeting process, which now allows departments to submit proposals without spending caps in a single round of budget requests to reduce reliance on supplementary budgets. Of the 7.8 trillion yen budget, 6.31 trillion yen will be allocated to investments under the category of a "Strong and Prosperous Japan," echoing Takaichi's initiative to drive economic recovery. Specific allocations include: approximately 2 trillion yen for artificial intelligence, semiconductors, and robotics; 680 billion yen to secure supplies of critical minerals (including rare earths); 220 billion yen to strengthen naphtha supply; and 180 billion yen to collaborate with the Ministry of Defense to enhance defense and dual-use capabilities.