Japan's FDI is heavily concentrated in finance, manufacturing, and service industries, significantly impacting migrant employment
- Finance & Insurance: Largest FDI sector, attracting ¥11.0 trillion (40.5% of total FDI) as of 2021. (JETRO)
- Manufacturing: Employs 552,000 foreign workers (as of Oct 2023), making it the biggest employer for migrants. (Statista)
- Service Industries: Includes retail, food services, and accommodation, contributing 43% of Japan’s total foreign workforce. (Statista)
Key Investments in Emerging Sectors
Artificial Intelligence & Semiconductors:
- $65 billion investment in microchips and AI to regain tech leadership and boost productivity.
- Rapidus, using IBM technology, is building a semiconductor fab in Hokkaido with pilot production by 2025. (CNN)
Renewable Energy:
- 40% growth in clean energy investment (2021-2023), aligning with Japan’s 2050 carbon neutrality goal.
- Over ¥150 trillion ($1.4 trillion) pledged for decarbonization, though full implementation may require ¥1,100 trillion ($7.7 trillion). (IEA)
Space Industry:
- Current market: ¥4 trillion ($26 billion), projected to double by 2030.
- Japan became the fifth country to land a spacecraft on the moon in 2024, showcasing space technology advancements. (WEF)
Cybersecurity & Cloud Computing Investments
Cybersecurity:
- $3.6 billion market (2022), expected to reach $13.25 billion by 2029.
- Government allocated ¥25.6 billion ($237M) for AI-driven security and cyber defense. (Trade.gov)
Cloud Computing:
- AWS: ¥2.26 trillion ($15.24 billion) investment by 2027 for infrastructure and digital skills. (Reuters)
- Microsoft: $2.9 billion investment in cloud and AI expansion. (Microsoft)
- Oracle: $8 billion investment to expand cloud operations in Japan. (Oracle)