Japanese Prime Minister Shigeru Ishiba has announced an ambitious ¥4 trillion ($65 billion) investment package for semiconductor and artificial intelligence (AI) sectors, despite facing significant political headwinds in implementing his agenda.

The announcement came during Ishiba’s first press conference as Prime Minister, where he outlined plans to build upon Japan’s existing semiconductor initiatives, including partnerships with global manufacturers like TSMC. The new funding package aims to strengthen Japan’s position in the critical tech sectors amid increasing global competition.

However, Bloomberg’s Isabel Reynolds reported that the implementation of these policies faces unprecedented challenges. Unlike previous administrations that enjoyed strong parliamentary majorities, Ishiba’s government must negotiate with opposition parties for every legislative initiative.

Reynolds explained that, in the past, the LDP policy or coalition policy effectively served as the government policy due to their long-standing majority in parliament. However, he noted that now, without that majority, they would need to discuss every single bill with minority parties and work to secure their support.

The political uncertainty could affect Ishiba’s international standing, particularly as he seeks a meeting with US President-Elect Donald Trump. Reynolds noted that questions remain about “how seriously will Donald Trump take him if he’s someone who is vulnerable to a no confidence vote motion at any point.”

The details of the investment package remain under scrutiny, with Reynolds indicating that “there’s a lot still to learn about that package” and that “further discussions this afternoon” are expected to clarify the allocation between direct investments and loans.

This ambitious tech funding initiative represents a critical test for Ishiba’s leadership and Japan’s technological competitiveness in an increasingly complex political landscape.