TOKYO -- Japan hopes to make quick wins in semiconductors and video games in the first five years of its growth strategy that it aims to have out by year-end, while pinning longer-term hopes on areas such as artificial-intelligence-controlled robots and hydrogen.

In July, Prime Minister Sanae Takaichi's government compiled a growth strategy calling for more than 370 trillion yen ($2.34 trillion) in combined public and private investment by fiscal 2040 in 62 products and technologies across 17 strategic sectors.

Tokyo now plans to implement the strategy through budgets from fiscal 2027 onward, based on an implementation plan to be formulated by the end of this year.

The plan will classify products and technologies into short-, medium-, and long-term timelines using profitability and economic security considerations as benchmarks.

Priority in the near term will be given to fields nearing or at the commercialization stage and expected to generate profits relatively quickly, including semiconductors and content industries like video games.

Areas viewed as the next growth engines include those where demonstration projects are advancing ahead of other countries, such as physical AI -- the use of AI to automate robots or machines -- hydrogen and perovskite solar cells.

Meanwhile, technologies such as nuclear fusion and quantum computing, though strategically important from an economic security standpoint, remain in the research and development stage.

For products requiring immediate support, the government plans to concentrate investment at an early stage to attract additional private-sector funding.

For technologies requiring longer-term investment, it will continue providing support while encouraging corporate R&D spending. The plan will also include measures addressing cross-sector challenges including labor markets, finance and regulatory reform.

Fiscal 2027, which will feature a new investment framework called "Strong and Prosperous Japan," will mark the first year of a full-scale budget push into crisis management and growth-oriented investment. The five years beginning in fiscal 2027 will be designated as a period of concentrated investment in the 62 targeted products and technologies.

Because the timing of support will vary by the development stage, the government aims to tailor policies to conditions in each strategic field. Companies will gain greater visibility into when their technologies and products may qualify for support, improving investment predictability.

As markets increasingly scrutinize Japan's fiscal stimulus measures, the government's ability to monitor and manage implementation of the growth strategy will be crucial.

Minoru Kiuchi, the minister in charge of Japan's growth strategy, indicated at a ruling Liberal Democratic Party meeting on Oct. 15 that the government would remain flexible in adding or removing investment targets.

"We will run a PDCA [plan-do-check-act] cycle to monitor progress, and if we see that something is not performing, we will revise our approach as the 'act' step," he said.

The implementation plan is expected to reflect three key principles: the significance of multiyear budgeting, expansion of private investment and improvements in Japan's potential growth rate, and continuous review and improvement through the PDCA process.

If the strategy proves effective, Japan's real gross domestic product growth rate could rise to the upper 1% range in the 2030s, according to Cabinet Office estimates released in June. The primary balance, a key measure of fiscal health, would return to surplus in 2028, while the debt-to-GDP ratio would gradually decline.

In a less successful scenario, however, both potential growth and actual economic growth would remain stuck in the lower half of possible ranges between zero and 1%, and the debt-to-GDP ratio would begin climbing in the 2030s. Maintaining the Domar condition, in which nominal economic growth exceeds long-term interest rates, would become increasingly important.

Among the government's major priorities for achieving higher growth are attracting foreign direct investment into Japan, expanding overseas markets and spreading economic benefits to rural areas.

Kiuchi visited several European countries, including the U.K. and Germany, this summer, where he discussed project development with his counterparts. He also encouraged the Japan External Trade Organization and Japanese diplomatic missions abroad to support business matching between Japanese and foreign companies.

The government is also fleshing out a future regional strategy that includes local industrial cluster initiatives. In a policy speech on Oct. 5, Takaichi said the number of such announced plans, which stood at 74 as of October, would be doubled by the end of the year.

Speaking at a meeting of Keidanren, the country's largest business lobby, in Tokyo on Monday, Takaichi urged companies to move ahead with investment in tandem with government initiatives. Keidanren is targeting 250 trillion yen in domestic private capital investment by fiscal 2040.