Japan Puts $2.3 Trillion Tech Strategy Behind Deep-Tech Startups
Updated
Updated · Nikkei Asia · Jun 30
Japan Puts $2.3 Trillion Tech Strategy Behind Deep-Tech Startups
3 articles · Updated · Nikkei Asia · Jun 30
Summary
$2.3 trillion sits at the center of Japan’s new tech strategy, with policymakers and universities pushing to build deep-tech startups in biotech, artificial intelligence and robotics.
Andreessen Horowitz partner Guido Appenzeller said the shift is striking compared with the late 1990s, when Japanese universities showed little interest in entrepreneurship or investor outreach.
That startup push fits Prime Minister Sanae Takaichi’s broader economic plan to remake Japan’s industrial base as Beijing’s rare-earth export controls sharpen supply-chain risks.
The strategy signals Japan wants future tech resilience to come not only from established manufacturers but also from a stronger pipeline of venture-backed domestic champions.
Can Japan's debt-ridden economy afford this high-stakes gamble to escape China's rare earth dominance?
Can new alliances build a non-Chinese supply chain before key industries are crippled by export bans?
China's 2025 Rare Earth Export Controls: $6.5 Trillion at Risk and the Global Race for Supply Chain Resilience
Overview
In April 2025, China dramatically tightened export controls on rare earths, including seven heavy rare earth elements and magnets. This move quickly escalated geopolitical tensions and caused immediate economic disruption, especially for Japan. The sharp decline in export volumes disrupted global supply chains, making it difficult for automakers in the United States, Europe, and other regions to source permanent magnets. As a result, many automakers had to reduce production or temporarily halt operations. Although China later granted export licenses and volumes recovered, the initial shock highlighted the world's heavy reliance on China for critical materials.