Sanae Takaichi, Prime Minister of Japan. Reuters Yonhap News 

The Japanese government will designate key technologies for economic security as "National Strategic Technologies" and expand support, Nihon Keizai Shimbun (Nikkei) reported on the 25th.

The Japanese government plans to select fields from the 16 "emerging and foundational technology" areas that are expected to remain highly important in terms of technological innovation from the 2030s onwards, designate them as National Strategic Technologies, and reflect them in its five-year science and technology policy guidelines to be established before March next year.

Technologies likely to be selected as National Strategic Technologies include six fields: Artificial Intelligence (AI) and advanced robotics, quantum technology, semiconductors and communications, bio and healthcare, nuclear fusion, and space.

The Japanese government plans to expand tax benefits for research and development costs and promote investment in these fields.

Furthermore, it plans to implement various support measures such as fostering R&D talent, establishing systems for startups and management, and cooperating with friendly nations.

Nikkei explained, "The Sanae Takaichi cabinet has set the realization of 'new technology-driven nation' as one of its important policy goals," adding, "The government aims to support fields necessary for economic growth and crisis management to promote private investment."

Meanwhile, Nikkei also reported that the Japanese government is pursuing a policy to foster "industrial clusters" to revitalize regional economies.

Following the establishment of a factory by TSMC, the world's largest contract chip manufacturer, in Kumamoto Prefecture, Kyushu, Japan, the Japanese government is considering creating industrial clusters in other regions in fields such as AI, semiconductors, shipbuilding, biotechnology, and aerospace, similar to the increase in related industrial facilities around the TSMC factory.

In this regard, the government plans to establish a comprehensive strategy for regional revitalization by the end of the year and promote regulatory reforms by utilizing the special zone system.

In addition, the Japanese government plans to introduce a tax credit system that allows companies to deduct 8% of their investment in factories and software from corporate taxes, as reported by the Yomiuri Shimbun.

A plan is also being considered to provide a tax credit of up to 15% of the investment amount for companies whose exports to the US have decreased due to the tariff measures imposed by US President Donald Trump.

This measure will be implemented temporarily for five years, and the scale of tax reduction is expected to reach 500 billion yen (approximately 4.7 trillion won) annually.

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