The government is expected to say in a key economic policy platform that the country aims to be at the core of global supply chains for strategically important goods such as next-generation semiconductors by ramping up investment in the areas.

The goal is included in a draft of the government's annual economic and fiscal policy guidelines. The government aims to adopt this year's guidelines in mid-June after coordination with the Liberal Democratic Party-led ruling coalition.

On fiscal reconstruction, the government will maintain its target of turning around the combined primary budget balance at the state and local governments in fiscal 2025 although the target year will not be written into the guidelines for the second straight year.