Japan's government is setting up a fund worth more than 10 trillion yen, or 65 billion dollars, to bankroll domestic development of next-generation technologies, including artificial intelligence and semiconductors.

Prime Minister Ishiba Shigeru announced the investment on Monday. He says the government may issue bridging bonds to raise the funds, which will be made available through fiscal 2030.

The government's commitment to backing high-tech industries is expected to attract additional investment from the private sector.

Ishiba says he hopes that the program will lead to more than 50 trillion yen, or about 325 billion dollars, in public-private investment over the next 10 years.

The government has been stepping up support for Japan's semiconductor industry. It has allocated nearly 26 billion dollars over the past three years for next-generation chip development.

But the funding needs in the industry are enormous. Japan's Rapidus was set up in 2022 to produce advanced semiconductors and it alone is projected to need 26 billion dollars in investment.