Japan is readying a $65-billion push in microchips and artificial intelligence aimed at reclaiming its status as a global tech leader and meeting the urgent challenges of its aging, shrinking population.

The 10-trillion-yen package, which lawmakers could approve this week, is also seen as preparation for an uncertain world as fears grow of a potential Chinese invasion of chip powerhouse Taiwan.

But analysts warn that question marks remain over worker shortages and whether Japan can generate enough electricity for energy-hungry AI data centers.