Executive summary
Japan is directing public money at manufacturing at a scale it has not attempted in decades, and it is doing so with fewer workers every year. For a foreign operator, those two facts are the whole story: there is real demand for suppliers, components, services and labour-saving technology, and there is a labour market that will not give up staff easily. This guide sets out only what ministries and statistics agencies in Japan have published, and what a credible first step looks like.
The policy envelope is large and it is official
The AI and Semiconductor Industrial Infrastructure Strengthening Framework from METI, established under the economic measures of 22 November 2024, states more than 10 trillion yen of public support over the seven years to fiscal 2030, intended to encourage more than 50 trillion yen of public and private investment over ten years, with an intended economic ripple effect of about 160 trillion yen. These are policy commitments and intended effects, not measured output.
The register of certified semiconductor production facility plans from METI (last updated 16 September 2025) lists maximum support amounts rather than disbursements: 476.0 billion yen (certified 17 June 2022) and 732.0 billion yen (24 February 2024) for JASM and TSMC plans, and 46.47 billion yen (30 September 2022), 167.0 billion yen (3 October 2023) and 500.0 billion yen (12 September 2025) for Micron Memory Japan plans. On 21 November 2025 METI selected Rapidus as the operator eligible for support under the Information Processing Promotion Act, and the minister stated that METI intends to invest the 100 billion yen allocated in the fiscal 2025 initial budget through the Information-technology Promotion Agency. The phrase "intends to invest" is the official wording, and it is not evidence that the money had been disbursed.
A fifth application round for the supply-security plans from METI (conventional semiconductors, manufacturing equipment, materials and specified raw materials) opened on 7 April 2026. METI warns that certification cannot be granted once the remaining budget is exhausted. For a supplier, that is the practical signal: the window is real, it is competitive, and it closes.
The workforce is the binding constraint
Read together: hiring in Japan takes longer and costs more than the headline growth numbers suggest, and any Japan plan that assumes a local team can be assembled quickly should be rewritten.
Foreign investment keeps arriving, but read the basis
The Japan-India corridor is now codified
At the summit of 29 August 2025 the two governments issued a Joint Statement and a Joint Vision for the Next Decade. The Joint Vision builds on the 2022 to 2026 target of 5 trillion yen of public and private investment and financing from Japan to India and sets a new target of 10 trillion yen of private investment. Both targets describe investment from Japan into India, not the reverse.
The economic-security fact sheet names semiconductors, critical minerals, pharmaceuticals, clean energy and information and communication technology as priority sectors, and records that the first economic-security dialogue was launched in November 2024. The published outcome list sets a two-way exchange of 500,000 people, including 50,000 skilled and semi-skilled personnel from India to Japan over five years, which is an objective rather than an admissions guarantee. At the 18th Japan-India Foreign Ministers Strategic Dialogue on 16 January 2026, the ministers concurred to emphasise economic security cooperation and growth through innovation.
How a first step actually looks
The Invest Japan Business Support Centers from JETRO exist to help foreign companies enter Japan and establish bases after arrival, and JETRO reviews and approves applications, so support is not unconditional. For a resident entity, the current JETRO guide to foreign entrepreneurs states the Business Manager requirements as securing a place of business, investing at least 30 million yen, and employing at least one full-time employee who meets the stated conditions. The National Strategic Special Zone startup visa was integrated with the foreign entrepreneurship programme of METI and expanded nationwide from 1 January 2025, deferring the office and business-scale requirements for up to two years.
The fiscal 2026 inward-investment feasibility subsidy from JETRO offered up to one-half of eligible expenditure for small and medium companies and up to one-third for large companies, capped at 20 million yen, with priority for semiconductors and microelectronics, life sciences and decarbonisation. The English notice recorded applications closing on 11 May 2026, so treat it as a programme to re-check each cycle rather than an open window.
What we would do first
What remains uncertain
We have not verified the cumulative public support for Rapidus, nor current construction, capacity or process-node status for the Kumamoto and Hiroshima sites, because certified plans establish maximum support amounts rather than delivery schedules. The figure of 7,698 foreign-affiliated companies is a survey target, not a national total. Monthly labour and aging series should be refreshed at editorial lock. We did not find a currently open regional factory or office investment grant with complete eligibility terms, and the Special Zones for Structural Reform framework is separate from the National Strategic Special Zones, so the two should not be conflated.
The bottom line
The official numbers for Japan describe a market where public capital is pulling private supply chains in, and where labour, not demand, is the constraint. That is a good environment for a focused, patient entrant and a poor one for a company that wants a quick, cheap base. If you are building a Japan plan, or serving Japanese anchors from elsewhere in Asia Pacific, tell us what you are working on and the capabilities you bring. This guide is general analysis, not legal, tax or investment advice.