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▶ Japan to mull air defense missile export amid push to ease transfer rules
01 Dec, 2025
Photo Source: Kyodo
Japan is discussing the possible export of its Type-03 surface-to-air missile system to the Philippines as Prime Minister Sanae Takaichi moves to loosen restrictions on defense equipment transfers. The Philippines has shown interest, and a formal study will begin once Japan removes its current rule limiting exports to noncombat uses. The change reflects Japan’s broader shift toward stronger security ties—especially with the Philippines in response to China’s assertiveness—though it may raise domestic concerns about departing from pacifist principles.
Mainichi: https://mainichi.jp/english/articles/20251201/p2g/00m/0na/010000c
▶ Japan’s JBIC shifts financing focus to economic security projects
01 Dec, 2025
Photo Source: REUTERS
Japan Bank for International Cooperation (JBIC) is shifting from traditional development lending toward financing economic security projects as geopolitical risks rise. Under a new investment facility launched in October, JBIC will help Japan deliver its $550 billion investment pledge in the U.S., focusing on supply-chain reinforcement in advanced sectors such as semiconductors, critical minerals, pharmaceuticals, energy, and shipbuilding. Governor Nobumitsu Hayashi said demand is especially strong in U.S. energy, including nuclear power and small modular reactors, where Japanese firms may play key roles. The initiative also helps Japan sustain its own nuclear supply chain amid limited domestic projects. JBIC’s expanding role reflects a global return to industrial policy as major powers ramp up strategic investments.
Asahi: https://www.asahi.com/ajw/articles/16193518
▶ Japan, New Zealand to Sign ACSA for Self-Defense Force, N.Z. military in Mid-December
01 Dec,2025
Photo Source: Yomiuri
Japan and New Zealand plan to sign an Acquisition and Cross-Servicing Agreement (ACSA) as early as December 18, enabling their forces to share food, fuel, and other supplies. The pact is meant to strengthen security cooperation amid China’s increasing maritime activity in the Pacific. New Zealand would become Japan’s ninth ACSA partner. During her visit, New Zealand Defense Minister Judith Collins will meet Japanese Defense Minister Shinjiro Koizumi and visit the MSDF base in Yokosuka, where New Zealand is considering adopting an upgraded Mogami-class frigate—equipment Japan hopes to export.
Yomiuri: https://japannews.yomiuri.co.jp/politics/defense-security/20251201-295687/
▶ Japan to launch satellite in Feb. to complete 7-orbiter geolocation system
02 Dec, 2025
Photo Source: Kyodo
Japan will launch the Michibiki No. 7 satellite on Feb. 1, completing its seven-satellite Quasi-Zenith Satellite System, a domestic geolocation network designed to reduce reliance on foreign GPS systems. With seven orbiters, Japan will always have at least four satellites overhead, improving reliability and paving the way for future expansion to 11 satellites. Starting around 2029, upgraded satellites are expected to improve positioning accuracy in Japan to about 1.6 meters, compared with today’s 5–10 meters.
Kyodo: https://english.kyodonews.net/articles/-/65996
MHI: https://www.mhi.com/news/25120101.html
▶ Japan holds first meeting on DOGE-inspired waste cut
02 Dec, 2025
Photo Source: JIJI
Japan held its first ministerial meeting on Tuesday to review tax measures, subsidies, and government spending, inspired by the U.S. Department of Government Efficiency (DOGE). A new department of about 30 people has been established in the Cabinet Secretariat to identify and eliminate wasteful spending. Chief Cabinet Secretary Minoru Kihara urged ministries to review their budgets and verify their effectiveness. Finance Minister Satsuki Katayama emphasized the need for reviews starting with the 2026 budget and tax reforms. The government plans to gather public input on fiscal measures by the end of the year, as part of its "responsible and proactive" fiscal policy.
Japan times: https://www.japantimes.co.jp/news/2025/12/02/japan/politics/doge-ministerial-meeting/
▶ Japan seeks to work with Saudi Arabia on rare earths amid China tensions
02 Dec, 2025
Photo Source: Kyodo
Japanese Prime Minister Sanae Takaichi urged Saudi Arabia to partner with Japan on developing rare-earth minerals to reduce dependence on China, warning that overreliance on critical materials poses supply risks. Speaking at the Future Investment Initiative forum in Tokyo, she emphasized strengthening supply chains with “like-minded countries.” Saudi Arabia, which claims over $2.5 trillion in mineral deposits, positions itself as a potential key supplier. PIF Governor Yasir Al-Rumayyan highlighted Saudi efforts to expand beyond oil using AI-driven mineral exploration. The appeal comes amid heightened Japan–China tensions over Taiwan and past Chinese restrictions on rare-earth exports. Meanwhile, Saudi Arabia’s PIF continues investing globally—including in Japanese companies like Nintendo and Chinese-linked firms like Lenovo—to support the kingdom’s economic diversification goals.
Nikkei Asia: https://asia.nikkei.com/business/finance/japan-seeks-to-work-with-saudi-arabia-on-rare-earths-amid-china-tensions
▶ Japan poised to ease restrictions on lethal arms exports in 2026
03 Dec, 2025
Source: Stockholm International Peace Research Institute
Japan plans to end its five-category limit on nonlethal defense exports next year to strengthen its defense industry. The change would make it easier to export equipment—including ships and submarines—beyond the current narrow categories set in 2014.
Supporters say this will boost Japan’s global competitiveness, while critics warn it could challenge the country’s pacifist stance. Key restrictions, such as bans on exports to countries under UN Security Council action, would remain.
Nikkei Asia: https://asia.nikkei.com/politics/defense/japan-poised-to-ease-restrictions-on-lethal-arms-exports-in-2026
▶ Trump to clear the road for minicar production in the U.S.
04 Dec, 2025
Photo Source: JIJI
Trump announced that the U.S. will allow foreign automakers, especially Japanese companies like Honda and Toyota, to build and sell small “cute” minicars domestically as part of a rollback of fuel-economy rules. The move comes amid U.S.–Japan auto trade tensions, though a July 22 deal lowered tariffs and eased Japan’s rules for importing U.S.-made cars. Japanese automakers’ U.S. sales have recently dipped, but Japan is reportedly considering importing Ford F-150s for government use.
Japan times: https://www.japantimes.co.jp/business/2025/12/04/companies/trump-kei-cars/
▶ Osaka expo's economic impact estimated at 3 trillion yen: think tank
04 Dec, 2025
Photo Source: Kyodo
The Osaka World Exposition generated an estimated economic ripple effect of 3.05 trillion yen ($19.6 billion), according to a private think tank. Visitor spending within and outside the venue totaled 1.04 trillion yen, with an additional 1.64 trillion yen impact on production and employment across related industries. While the expo attracted over 25 million visitors and boosted merchandise sales, economic benefits were largely concentrated in Osaka Prefecture, limiting the wider regional impact and falling short of the initially projected 3.37 trillion yen.
Mainichi: https://mainichi.jp/english/articles/20251204/p2g/00m/0na/010000c
▶ Japan looks to centralize intelligence gathering with new agency
04 Dec, 2025
Image: Nikkei
Japan plans to upgrade the Cabinet Intelligence and Research Office into a new national intelligence bureau by fiscal 2026, giving it stronger authority and direct reporting to the prime minister. A National Intelligence Council would also be created to unify information from multiple ministries and improve responses to espionage, disinformation and election interference. The ruling coalition also aims to establish a separate foreign intelligence agency by 2027 and advance anti-espionage laws, including a potential foreign agents registration act, with some opposition parties showing willingness to cooperate.
Nikkei Asia: https://asia.nikkei.com/politics/japan-looks-to-centralize-intelligence-gathering-with-new-agency
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▶ ANA, JAL to deploy Level 4 self-driving cargo transport at Tokyo airports
29 Nov, 2025
Photo Source: Keiichi Furukawa/Nikkei
All Nippon Airways (ANA) and Japan Airlines (JAL) will deploy Level 4 autonomous towing tractors at Tokyo’s Haneda and Narita airports starting December, marking the first use of such vehicles at Japanese airports. ANA will use Toyota Industries’ lidar-equipped tractors, while JAL will introduce models from TLD and China’s Weihai Guangtai; both feature remote-monitoring systems. Initial deployment will be small, with plans to expand fleets by next spring. The move comes as passenger traffic surges—driven by record inbound tourism—and as airlines face labor shortages among experienced ground staff. Both carriers are also increasing use of automated guided vehicles and remote-controlled towing equipment to boost efficiency.
Nikkei Asia: https://asia.nikkei.com/business/technology/ana-jal-to-deploy-level-4-self-driving-cargo-transport-at-tokyo-airports
▶ Micron to invest $9.6 billion in western Japan plant, report says
29 Nov, 2025
Photo Source: BLOOMBERG
Micron Technology plans to invest ¥1.5 trillion ($9.6 billion) to build a plant in western Japan, focused on producing memory chips for artificial intelligence applications. The new facility, located at its Hiroshima plant, will manufacture high-bandwidth memory (HBM) chips, crucial for AI processors like those from Nvidia. Production is expected to begin by 2028. The Japanese government will subsidize up to ¥500 billion of the costs as part of its broader initiative to strengthen the nation's chipmaking capabilities. Micron is competing in the HBM market with South Korea's SK Hynix and Samsung Electronics, as demand for AI-related chips continues to rise.
Japan times: https://www.japantimes.co.jp/business/2025/11/29/companies/micron-investment-semiconductors/
▶ Memorandum of Understanding Concluded on Establishing a Standard Design Framework Utilizing MILES for Liquefied CO2 Carriers and Alternative Fuel Ships
01 Dec, 2025
Seven major Japanese shipbuilding and shipping companies — including Mitsubishi Shipbuilding, Imabari Shipbuilding, “K” Line, MOL, NYK Line, JMU, and NSY — have signed an MoU to create a standard design framework for liquefied CO₂ carriers and next-generation alternative-fuel ships such as ammonia-powered vessels. MILES Co., Ltd. will lead the development of common initial ship designs, enabling multiple Japanese shipyards to build competitive vessels based on shared specifications. Several companies, including the three major shipping lines and shipbuilders JMU and NSY, will invest in MILES to strengthen this cross-industry collaboration and boost Japan’s global competitiveness in shipbuilding. The initiative aims to support progress toward a carbon-neutral society.
NYK LINE: https://www.nyk.com/english/news/2025/20251201_01.html
▶ Seven-Eleven Japan to Start Self-Driving Truck Tests
01 Dec, 2025
Photo Source: Seven-Eleven Japan
Seven-Eleven Japan will begin testing a self-driving truck for long-distance product transport—the first such trial in Japan’s convenience store and supermarket sectors. Partnering with autonomous-driving developer T2 Inc. and Mitsui & Co. Retail Group, the company aims to address worsening truck-driver shortages and secure stable product delivery. Three test runs will take place by April on sections of the Tomei and Meishin expressways, moving Seven-Eleven private-label goods between logistics hubs in Saitama and Hyogo.
JIJI: https://jen.jiji.com/jc/eng?g=ind&k=2025120100983
▶ SoftBank Corp. and Yaskawa Electric Corporation Begin Collaboration on Social Implementation of "Physical AI" Utilizing AI-RAN
01 Dec, 2025
Photo Source: SoftBank
SoftBank and Yaskawa Electric have partnered to develop Physical AI robots that can perform flexible tasks using AI-driven decisions. The collaboration combines Yaskawa's robotics with SoftBank's AI-RAN and MEC technologies, enabling robots to adapt to dynamic environments and perform multiple roles, such as retrieving items based on real-time data from building management systems. The project addresses Japan’s automation needs, aiming to tackle labor shortages and improve efficiency in places like offices and hospitals. A demonstration of the robot will take place at the 2025 International Robot Exhibition (iREX 2025). This initiative aims to expand robots' capabilities through advanced AI and communication technologies.
SoftBank: https://www.softbank.jp/en/corp/news/press/sbkk/2025/20251201_02/
Yasukawa Electric: https://www.yaskawa-global.com/newsrelease/news/178574
▶ Successful Launch of Ultra-Compact Hyperspectral Satellite "IHI-SAT2"
01 Dec, 2025
Photo Source: IHI
IHI Corporation and IHI Aerospace successfully launched the ultra-compact hyperspectral satellite IHI-SAT2 on November 28 via SpaceX’s Transporter-15 mission. The satellite will capture detailed hyperspectral images to analyze forest characteristics, monitor growth, detect early disease, and support carbon credit development. Operating its own satellite allows IHI to accelerate forest monitoring and advance data analysis technologies. The launch also contributes to building IHI’s future Earth observation satellite constellation and enhances expertise in satellite operations, supporting sustainable forest management and Japan’s carbon neutrality goals by 2050.
IHI: https://www.ihi.co.jp/en/all_news/2025/aeroengine_space_defense/1201765_13743.html
▶ Japanese companies take major stakes in US synthetic gas project
02 Dec, 2025
Photo Source: REUTERS
Japanese companies Osaka Gas, Toho Gas, and Itochu have acquired a 33.3% stake in the $1 billion Live Oak project in Nebraska, led by TotalEnergies and Tree Energy Solutions (TES). The project aims to produce e-methane, a low-carbon fuel made from hydrogen and CO2, which is chemically identical to natural gas but greener. Japan plans to replace 1% of its city gas with low-carbon gases by 2030 as part of its carbon neutrality goals. The project’s output has been scaled back to 75,000 tons per year, and the final investment decision is now set for 2027. However, the high cost of e-methane production and global inflation have raised concerns about its economic viability. Despite this, the project’s existing infrastructure avoids the need for new logistics, making it a potentially more feasible option for Japan’s energy transition.
Nikkei Asia: https://asia.nikkei.com/business/business-deals/japanese-companies-take-major-stakes-in-us-synthetic-gas-project
▶ Nvidia and Fanuc team on 'physical AI' push for industrial robots
02 Dec, 2025
Source: International Federation of Robotics
Fanuc is partnering with Nvidia to develop AI-powered industrial robots that can respond to verbal commands and safely operate around humans. The robots will use Nvidia computers and be trained in a virtual factory for faster deployment. Compatible with the ROS 2 platform and controllable via Python, these systems mark Fanuc’s first major move into “physical AI.”
Driven by rapid advances in AI and rising global demand for flexible robotics, Fanuc aims to leverage its hardware strengths as competitors like ABB, Yaskawa, and Tesla also accelerate physical-AI robot development. The shift reflects a broader industry transformation toward smarter, autonomous machines expected to number up to a billion by 2050.
▶ Hitachi Rail to accelerate rail digital transformation with Google Cloud
02 Dec, 2025
Image: Hitachi
Hitachi Rail will use Google Cloud’s cybersecurity, generative AI, and agentic AI technologies to accelerate digital transformation and move toward autonomous, energy-efficient rail systems. The collaboration builds on the wider Hitachi–Google Cloud strategic alliance announced in October 2025 and combines Hitachi Rail’s operational expertise, GlobalLogic’s digital engineering capabilities, and Google Cloud’s AI platforms. The partnership aims to improve operational productivity, support sustainable mobility, and lay the groundwork for fully autonomous rail networks, aligning with Hitachi’s broader Lumada 3.0 AI initiatives.
Hitachi (Press Release): https://www.hitachi.com/New/cnews/month/2025/12/251203a.pdf
▶ Mitsubishi Electric to triple output capacity for optical devices
03 Dec, 2025
Photo Source: Neo Jimbo/Nikkei
Mitsubishi Electric will triple its production capacity for optical semiconductor devices by fiscal 2028, shifting investment away from sluggish EV power devices. Demand for optical components is soaring due to rapid AI-driven data center growth. Mitsubishi Electric, which holds about 50% of the global market for data-center optical devices, expects long-term expansion and strong profitability. Other Japanese makers — Sumitomo Electric and Lumentum Japan — are also sharply increasing capacity, as Japan’s top optical device producers together control around 70% of the global market. Rising data volumes are pushing development toward faster optical devices (400–800 Gbps), keeping Japanese firms in a leading position.
▶ JERA Partners With Newlab New Orleans to Advance Low-Concentration CO₂ Capture Technologies for Power Generation
03 Dec, 2025
JERA Ventures has partnered with Newlab New Orleans to accelerate next-generation carbon capture technologies capable of handling low-concentration CO₂ emissions from gas-fired power plants. The collaboration will evaluate emerging point-source capture (PSC) startups, conduct industrial-scale testing, and select one technology by 2026 for deeper development and potential commercialization. By leveraging Newlab’s industrial testing environment in Louisiana, the partnership aims to de-risk early-stage solutions and advance them toward pilot projects. The initiative aligns with JERA’s broader investments in Louisiana’s energy sector, including low-carbon ammonia, solar power, shale gas, and LNG.
JERA: https://www.jera.co.jp/en/news/information/20251203_2322
▶ US defense tech startup Anduril eyes manufacturing in Japan
03 Dec, 2025
Photo Source: Mitsuru Obe/Nikkei and Reuters
Anduril Industries is expanding into Japan and considering building a factory and partnering with local manufacturers. Founder Palmer Luckey said the company could invest “hundreds of millions to billions of dollars” as it brings its autonomous defense technologies to the country.
A key element of the expansion is Anduril’s collaboration with METI, working together to strengthen Japan’s defense supply chain through component standardization and the use of commercial or dual-use technologies.Anduril also announced a potential partnership with motor maker Aster for product assembly and parts sourcing, as it seeks to localize production despite recent media reports about testing glitches, which the company says are normal in development.
Nikkei Asia: https://asia.nikkei.com/business/startups/us-defense-tech-startup-anduril-eyes-manufacturing-in-japan
▶ Renesas, Sumitomo Heavy join Japan team building humanoid robots
03 Dec, 2025
Photo Source: REUTERS
Japanese electronics and semiconductor makers are joining the Kyoto Humanoid Association (KyoHA) to develop and mass-produce humanoid robots by 2027, aiming to catch up with rapid progress in China and the U.S. The group, now 13 organizations strong, plans to build prototypes by March 2026, including a large disaster-response robot and a human-sized agile model. Companies such as Murata, Renesas, Sumitomo Electric, and others will contribute their own core technologies. The project is meant to strengthen Japan’s domestic supply chain for humanoid robotics, a field expected to grow sharply as labor shortages increase. Despite Japan’s limited recent progress compared to China, the government also targets a general-purpose AI humanoid prototype by 2030.
Nikkei Asia: https://asia.nikkei.com/business/technology/renesas-sumitomo-heavy-join-japan-team-building-humanoid-robots
▶ Corleo, Kawasaki Heavy Industries’ Four-legged Robot, to Go on Sale as Early as 2035
03 Dec, 2025
Photo Source: Yomiuri
Kawasaki Heavy Industries plans to commercialize its quadrupedal robot “Corleo” as early as 2035, following strong interest at the 2025 Osaka-Kansai Expo. Designed for use in mountainous areas and in gaming/e-sports, the hydrogen-powered robot can carry a rider and move like a mechanical horse. Kawasaki aims to grow the business to ¥300 billion by 2040, leveraging expertise from its motorcycle division.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20251203-296223/
▶ Spotlight shines on humanoid robots at Tokyo show
04 Dec, 2025
Photo Source: JIJI
The 2025 International Robot Exhibition in Tokyo features advanced humanoid and AI-powered robots designed for work and disaster response. Kawasaki’s new Kaleido robot demonstrated tasks like fire extinguishing and rescue, while GMO showed a humanoid capable of dancing and serving customers. Yaskawa and SoftBank presented an office where AI robots clean and organize spaces, and Man-Machine Synergy Effectors displayed a VR-operated robot for maintenance work. The event hosts a record 673 exhibitors and expects over 150,000 visitors. Entry costs ¥1,000, with free admission for junior high students and younger.
Japan times: https://www.japantimes.co.jp/business/2025/12/04/companies/humanoid-robots-tokyo/
▶ Japan's NEC gains US foothold in face-pay tech with startup deal
04 Dec, 2025
Photo Source: PopID
NEC is expanding its facial recognition business into the U.S. through an investment in PopID, a California-based payment platform used by over 1,000 businesses.
PopID, which lets customers pay via facial recognition linked to bank accounts or credit cards, plans to adopt NEC’s highly accurate technology. NEC joined PopID’s Series C funding round alongside Visa, PayPal and Verifone, though investment details were not disclosed. Lower transaction fees make PopID attractive to stores, and NEC’s facial recognition is already used in over 50 countries, including at airports and Osaka Expo 2025.
Nikkei Asia: https://asia.nikkei.com/business/companies/japan-s-nec-gains-us-foothold-in-face-pay-tech-with-startup-deal
▶ Japan's IHI to produce rocket motors for missiles at new factory building
05 Dec, 2025
Photo Source: IHI Aerospace
Japanese industrial group IHI is building a new facility in Tomioka, Gunma, to produce solid rocket motors for missiles as part of Japan’s expanding defense supply chain. The factory will be completed in fiscal 2028. IHI Aerospace, which supplies propulsion systems for Japan’s Self-Defense Forces, aims to double its current revenue of 70 billion yen and contribute to IHI’s broader goal of nearly doubling defense-related revenue to around 400 billion yen by the 2030s. The company is also looking to expand defense exports and grow its unmanned underwater vehicle business.
Published: December 2025
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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.
