The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
▶ 'Telecom Five Eyes' to meet in Tokyo with focus on AI, 6G cooperation
07 Dec, 2025
Image: Nikkei
Japan, Australia, Canada, the U.K., and the U.S. will hold a GCOT meeting in Tokyo to coordinate on AI, 6G, cybersecurity, quantum technology, and Open RAN standards, aiming to counter China’s growing influence in global telecoms. The meeting promotes secure, low-cost networks, international collaboration, and aligns with GCOT’s principles on innovation, transparency, security, and interoperability. It coincides with a U.S.-hosted Open RAN symposium attended by over 20 countries, expanding cooperation beyond the five core members.
Nikkei Asia: https://asia.nikkei.com/business/telecommunication/telecom-five-eyes-to-meet-in-tokyo-with-focus-on-ai-6g-cooperation
▶ Japan to set up environment safeguards for mega solar project regulations
08 Dec, 2025
Photo Source: Kyodo
The Japanese government plans to strengthen safeguards for ecosystems and landscapes affected by large-scale solar farms. By 2026 at the earliest, revisions to the Electricity Business Act may require a third-party organization to verify the safety of such facilities. The move responds to concerns about impacts on wildlife, endangered species, forestland, and landscapes, especially after backlash near Hokkaido’s Kushiro Wetlands. Solar farms over 10 kilowatts will be subject to independent safety reviews, supplementing checks currently handled by operators.
Kyodo: https://english.kyodonews.net/articles/-/66407
▶ Japan, India Hold Talks on Economic Security Cooperation
11 Dec, 2025
Photo Source: JIJI
Around 50 officials and experts from Japan and India met in New Delhi to discuss strengthening economic security cooperation. They emphasized the need for shared supply chains for strategic materials like semiconductors and rare earths, as both countries face challenges from China’s export restrictions and past U.S. protectionist policies. Japan’s ambassador stressed the importance of deepening private-sector collaboration to advance agreements made at the August summit. Participants also discussed projects such as NEC’s undersea cable work with the Indian government and joint research initiatives supported by the Japan Science and Technology Agency.
JIJI: https://jen.jiji.com/jc/eng?g=eco&k=2025121100336
▶ Japanese R&D Tax Credits to Support Artificial Intelligence, Robotics, Semiconductors, Other Strategic Tech
11 Dec, 2025
Photo Source: Yomiuri
Japan’s government and ruling coalition are finalizing expanded corporate tax breaks to boost R&D and capital investment. For key technologies—such as AI, robotics, semiconductors, and communications—companies will be able to deduct up to 40% of R&D spending from corporate taxes, or up to 50% for pre-approved joint research with universities and research institutes. R&D outside these priority fields will see scaled-back incentives, and tax breaks for overseas R&D will be tightened to encourage domestic research. A new capital investment promotion scheme will allow companies to deduct 7% of qualifying investments or opt for immediate expensing. To qualify, large firms must invest at least ¥3.5 billion and small/medium firms at least ¥500 million, with plans approved through March 2029. The program is expected to provide about ¥400 billion in annual tax relief. The measures aim to keep Japan competitive as the U.S. and Europe expand tax incentives for advanced technology and capital investment.
Yomiuri: https://japannews.yomiuri.co.jp/politics/politics-government/20251211-297933/
▶ Japan to Add Economic Security to Scope of Designated Secrets
11 Dec, 2025
Photo Source: JIJI
Japan plans to add economic security–related information to the categories protected under its specially designated secrets law. A draft revision to the law’s operational standards was approved by the ruling Liberal Democratic Party, with formal adoption expected by the end of the year. This is the second revision since the law took effect in 2014. The change aims to strengthen information protection by aligning the secrets system with the new security clearance program. Currently, specially designated secrets cover defense, diplomacy, counterespionage, and counterterrorism, with strict penalties for leaks.
JIJI: https://jen.jiji.com/jc/eng?g=eco&k=2025121100309
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▶ Tokyo firm's ride-sharing spreads in regions lacking transit options
07 Dec, 2025
Photo Source: Kyodo
Tokyo-based NearMe Inc. is expanding its AI-powered ride-sharing services to Japanese regions with limited public transportation. As Japan faces population decline, aging communities, and driver shortages, the government aims to increase shared transport initiatives to 100 cases by fiscal 2027. NearMe now partners with local governments in 13 prefectures. In Nishio, Aichi Prefecture, its platform replaced a low-ridership community bus, offering rides for 200 yen with support from a local taxi firm. The service also helps transport tourists in Akita Prefecture. Japan has roughly 2,000 “transit desert” areas lacking nearby transport options.
Kyodo: https://english.kyodonews.net/articles/-/66314
▶Japanese nuclear fusion startup Helical signs breakthrough energy deal
08 Dec, 2025
Photo Source: Helical Fusion
Japanese fusion startup Helical Fusion has signed its first-ever power purchase agreement (PPA) with supermarket chain Aoki Super, marking a milestone for Japan’s nuclear fusion industry. Under the deal, Helical plans to supply electricity from its pilot fusion plant in the 2030s. Helical is currently building a demonstration device and aims for a full-scale operational plant before 2040. Fusion energy, which replicates the sun’s power, produces large amounts of energy from small amounts of deuterium and tritium, with no carbon emissions or long-lived radioactive waste. PPAs are rare globally, with a few U.S. startups having signed similar agreements. Japan’s government, under Prime Minister Sanae Takaichi, is increasing support for fusion, aiming for commercial power generation in the 2030s and allocating 100 billion yen ($645 million) in the supplementary budget for the industry. International competition, particularly from the U.S. and China, is intensifying.
Nikkei Asia: https://asia.nikkei.com/business/technology/japanese-nuclear-fusion-startup-helical-signs-breakthrough-energy-deal
Helical Fusion: https://www.helicalfusion.com/en/post/helical-fusion-signs-japan-s-first-power-purchase-agreement-for-fusion-energy-with-aoki-super
▶ Japan’s Steelmakers Turn to Hydrogen in Decarbonization Efforts, but High Costs Hinder Progress
08 Dec,2025
Photo Source: Nippon Steel
Major Japanese steelmakers are testing hydrogen-based methods to reduce CO2 emissions in steel production, aiming for “green steel” technologies. Traditional blast furnaces emit large amounts of CO2, while electric furnaces lower emissions but have high costs and quality limitations. Nippon Steel, JFE Steel, and Kobe Steel are experimenting with hydrogen in various ways, achieving CO2 reductions of 20%-50% in trials. However, high costs—often double conventional methods—are a major obstacle, leading some companies to scale back decarbonization investments. The government provides subsidies for hydrogen-based steel R&D, but more market creation is needed to recover investments, according to industry leaders.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20251208-297196/
▶ Mitsui to boost LNG output in Australia, first new project in 5 years
08 Dec, 2025
Source: Mitsui & Co.
Japanese trading company Mitsui & Co. has begun production at the Waitsia LNG project in Western Australia, its first new LNG operation in five years. Mitsui expects to produce 700,000 tons annually from its 50% share, boosting its total Australian LNG output to 1.9 million tons, comparable to its 2 million tons in the U.S. Globally, Mitsui’s LNG production will rise about 10% to 6.7 million tons. Waitsia marks Mitsui’s first LNG project as operator, giving the company experience in development planning, construction, and operations. Gas from Waitsia will be transported to the North West Shelf (NWS) for processing and shipment, helping offset dwindling NWS reserves. Australian LNG is strategic for Japan, accounting for 40% of imports in FY2024, with short shipping times (~10 days) and fewer geopolitical risks compared with Middle Eastern LNG.
Nikkei Asia: https://asia.nikkei.com/business/energy/mitsui-to-boost-lng-output-in-australia-first-new-project-in-5-years
▶ JERA Signs Its First Long-Term LNG Supply Agreement with India’s Torrent Power, Leveraging Complementary Seasonal Demand in Asia
08 Dec, 2025
JERA, Japan’s largest power generator, has signed its first long-term LNG supply agreement outside Japan, agreeing to deliver four LNG cargoes per year (about 270,000 tonnes annually) to India’s Torrent Power for ten years starting in 2027. The LNG will support Torrent’s gas-fired power plants and its city gas distribution business, helping meet India’s rising energy demand and balance renewable generation. The deal leverages opposite seasonal demand patterns in Japan and India, improving JERA’s fleet utilization. JERA views the agreement as part of its strategy to diversify its LNG portfolio and expand into high-growth Asian markets while strengthening resilience and competitiveness.
JERA: https://www.jera.co.jp/en/news/information/20251208_2324
▶ Osaka Gas to focus more on LNG supply to vessels, president says
09 Dec, 2025
Photo Source:JIJI
Osaka Gas plans to sell 70,000 tons of LNG annually as ship fuel through offshore supply by 2030, entering the business in 2026. President Masataka Fujiwara said demand for LNG-powered vessels is expected to grow, noting the company’s advantage in Osaka Bay and the Seto Inland Sea. With two LNG terminals and a supply vessel set for completion next April, Osaka Gas aims to expand as more ships adopt LNG to cut carbon emissions. The number of LNG-fueled vessels has risen to about 600 worldwide, and the company intends to further strengthen its offshore LNG supply operations.
Japan times: https://www.japantimes.co.jp/business/2025/12/09/companies/osaka-gas-lng-focus/
▶ Panasonic eyes new approach to underwater communications for 2030
10 Dec, 2025
Photo Source: Panasonic Holdings
Panasonic Holdings plans to develop an operational underwater communication system called Nessum by around 2030. Created with Kyushu Institute of Technology, Nessum aims to deliver higher-quality image and sound transmission than current underwater methods. The system uses special devices attached to power lines to enable both wired and wireless communication at speeds comparable to 4G. Already used on land and expected to become an international standard next year, Nessum could significantly improve underwater robot and drone operations, helping with sea-floor research and resource exploration, including areas containing rare-earth elements.
Nikkei Asia: https://asia.nikkei.com/business/technology/panasonic-eyes-new-approach-to-underwater-communications-for-2030
▶ Passenger ferry in western Japan to run autonomously in world 1st
10 Dec, 2025
Photo Source: Kyodo
The passenger ferry Olympia Dream Seto, operating between Okayama and Shodoshima Island, will become the world’s first vessel to use semi-autonomous navigation, following government certification. The ferry demonstrated its ability to detect and reroute around other ships. Operated by Kokusai Ryobi Ferry, the initiative aims to address Japan’s labor shortage, ensure transportation to remote islands, and improve maritime safety. It is part of a broader project by the Nippon Foundation and over 50 companies, with three other vessels expected to begin commercial autonomous operations by April 2026.
Kyodo: https://english.kyodonews.net/articles/-/66583
▶ Startup tests drone delivery over railroad in Fukushima
10 Dec, 2025
Photo Source: JIJI
Japanese startup Eams Robotics conducted the country’s first operator-out-of-sight drone flight over a railroad track in an inhabited area, during a delivery test in Minamisoma, Fukushima. The test, carried out with Deloitte Tohmatsu and using an ACSL drone, involved flying over the JR Joban Line, delivering one package and picking up another. Sagawa Express and JR East also cooperated. Eams Robotics said it aims to advance drone technology and public trust in its safety.
Japan times: https://www.japantimes.co.jp/news/2025/12/10/japan/fukushima-drone-delivery/
▶ New Japan tech said to slash power use in making next-gen 1.4-nm chips
10 Dec, 2025
Photo Source: Dai Nippon Printing
Dai Nippon Printing (DNP) has developed a new template technology that could reduce power consumption for manufacturing advanced semiconductors by 90%, potentially lowering the cost of AI chips. The material is designed for use with Canon’s nanoimprint lithography equipment and can support production of cutting-edge 1.4-nanometer chips. This offers a lower-cost, lower-power alternative to ASML’s extremely expensive EUV lithography systems, currently the only method used for such advanced chips. While nanoimprint has faced challenges with defects and speed, Canon and DNP aim for mass production in 2027. As Samsung and TSMC target 1.4-nm production by 2027–2028, interest in nanoimprint is growing, though switching from existing photolithography-based systems remains difficult. If the technology spreads, companies like DNP and Fujifilm could gain new opportunities in semiconductor materials.
▶ MHI Successfully Produces Hydrogen at Its Ammonia Cracking Pilot Plant Using Steam Heating
10 Dec, 2025
Image : MHI
Mitsubishi Heavy Industries (MHI) successfully produced 99% pure hydrogen by cracking ammonia using steam at its Nagasaki pilot plant—a world first. Unlike conventional combustion-based methods, MHI’s steam heating operates at lower temperatures, reducing costs and enabling system miniaturization. The company aims to develop medium-scale, decentralized ammonia cracking systems near hydrogen demand sites, advancing a hydrogen supply chain using ammonia as a carrier. This project, in collaboration with Nippon Shokubai and Hokkaido Electric Power and supported by NEDO, supports decarbonization and Japan’s carbon-neutral goals.
MHI: https://www.mhi.com/news/251210.html
▶ Japan's Murata explores quantum cryptography tech via venture capital arm
10 Dec, 2025
Photo source: Lightsynq
Murata Manufacturing is using its new corporate venture capital unit, Wonderstone Ventures, to invest in startups working on next-generation technologies such as quantum cryptography, 6G, bioelectronics, and robotics. Its first investment is in Aliro, a Harvard-origin startup developing quantum cryptography software. Murata aims to gain long-term technological insights and explore future applications of its components by collaborating with cutting-edge startups. Wonderstone plans about 10 small investments per year, with a $50 million budget over five years and potential expansion into Europe. These efforts support Murata’s strategy to grow its higher-value business sectors and stay competitive amid rapid technological change, following similar moves by rivals like TDK.
▶ Mitsubishi Electric Develops Physics-Embedded AI for Accurate Estimation of Equipment Degradation from Small Amounts of Training Data
10 Dec, 2025
Image: Mitsubishi Electric
Mitsubishi Electric has developed a physics-embedded AI that accurately estimates equipment degradation using minimal training data. By integrating theoretical physical models with small amounts of operational data, the AI can dynamically adjust to different devices and environments, improving prediction accuracy. This technology helps manufacturing sites prevent equipment failures, maintain productivity and quality, and reduce maintenance costs, addressing challenges posed by complex equipment and a shrinking skilled workforce.
Mitsubishi Electric (PDF): https://www.mitsubishielectric.com/en/pr/2025/pdf/1210.pdf
▶ Isuzu Motors to test self-driving truck along expressway
11 Dec, 2025
Photo Source: Jumpei Miura/Asahi
Isuzu Motors will soon trial a self-driving truck for transporting spare parts on public roads between Tochigi and Ichinomiya, with a human driver on board for safety. The truck, developed with U.S. startup Applied Intuition, uses LiDAR and other technologies to navigate typical traffic scenarios. Isuzu aims to start a Level 4 autonomous truck and bus business by fiscal 2027. Other Japanese commercial vehicle makers, including Hino Motors and Mitsubishi Fuso, are also testing self-driving trucks and collaborating on demonstrations to advance autonomous driving technology amid a driver shortage.
Asahi: https://www.asahi.com/ajw/articles/16175446
▶ Kyocera and Canon to invest in Japanese chipmaker Rapidus
12 Dec, 2025
Photo Source: Reuters
More than 20 Japanese companies — including Kyocera, Canon, Honda, Fujifilm, and Ushio — will newly invest in Rapidus, joining existing shareholders like Sony to help the chipmaker reach its fiscal 2025 goal of securing 130 billion yen in private funding. With around 30 shareholders expected, each contributing between 500 million and 20 billion yen, Rapidus is building the financial base needed to begin mass-producing advanced 2-nanometer chips in Hokkaido from fiscal 2027. Financial institutions will invest up to 25 billion yen and provide loans totaling up to 2 trillion yen from 2027. The Japanese government has also committed about 1 trillion yen in new support, bringing total government backing to 2.9 trillion yen. While funding is taking shape, Rapidus still faces hurdles in developing mass-production technology and securing customers, as well as managing governance with a rapidly expanding shareholder base.
Nikkei Asia: https://asia.nikkei.com/business/tech/semiconductors/kyocera-and-canon-to-invest-in-japanese-chipmaker-rapidus
▶ Japan trading house Itochu to buy into US solar power project
12 Dec, 2025
Photo Source: Itochu
Itochu will invest tens of billions of yen in the Black Hollow Sun solar power project in Colorado, marking its largest solar initiative in northern Colorado. The project, developed by ContourGlobal under KKR, will have a total capacity of 258 MW. Its first 150-MW phase began operating in October, and the remaining 108-MW phase is slated for completion by late 2026. The plant will supply enough renewable energy to power about 70,000 homes. Itochu is expanding its U.S. renewable investments and aims to boost North American renewable-energy profit to 12.5 billion yen by around 2030, up from 2.9 billion yen in fiscal 2024.
Nikkei Asia: https://asia.nikkei.com/business/business-deals/japan-trading-house-itochu-to-buy-into-us-solar-power-project
▶ Japan's Sumitomo to double spending in Indian renewables to $1.3bn
12 Dec, 2025
Photo Source: Nikkei
Sumitomo Corp. will double its planned investment in Indian renewable energy to 200 billion yen ($1.28 billion) through a joint venture with Ampin Energy Transition, aiming to build over 2 GW of solar and wind capacity by fiscal 2027. Projects are underway across more than 10 states, with solar plants already operating in Haryana and Karnataka. The electricity will be sold directly to Japanese companies in India, with nearly 10 firms already signing power purchase agreements. Sumitomo aims to become the largest Japanese power producer in India as corporate demand for renewable energy grows, with the market expected to expand from 12 GW in 2023 to 100 GW by 2030.
Nikkei Asia: https://asia.nikkei.com/business/energy/japan-s-sumitomo-to-double-spending-in-indian-renewables-to-1.3bn
Published: December 2025
The EU-Japan Centre currently produces 5 newsletters :
Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.
