The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the latest information from the Japanese governmental organizations & private companies/organizations. A couple of minutes reading to be informed about what is happening in Japan's policy, economy, EU-Japan relations, and innovation.

*Information is deemed correct at the time of release. 

METI contributes JP￥45 billion to cutting-edge semiconductors
The Ministry of Economy, Trade and Industry (METI) announced on February 9 that it will support up to JP￥45 billion for research and development of semiconductors for artificial intelligence (AI). The funds will be donated to domestic research institutions in which Lapidus and others participate. They will research design technology for semiconductors for AI that have fast data processing and low power consumption, and will make it possible to produce them domestically. The project will support the Advanced Semiconductor Technology Center (LSTC), a research institute run by Lapidus, the University of Tokyo, RIKEN, and others. The money will be used for five years of research until 2029.

The center will research semiconductor design technology for “edge AI,'' where data is not sent to a server but is processed on the terminal side with AI. The company aims to mass produce the product at Rapidus in the future. Demand for edge AI is increasing because it can reduce processing costs. The METI will also support the research and development of next-generation semiconductors with circuit line widths of 1 nanometer (1/1 billionth of a billionth of a meter). The development results are expected to be released on the market after 2029. In developing the next-generation 1-nanometer product, the company will collaborate with semiconductor manufacturing equipment giants Applied Materials (AMAT) in the US, IBM in the US, and semiconductor research institutes Leti (France) and Imec (Belgium) to develop elemental technologies.

METI YouTube Channel (in Japanese):
https://public-comment.e-gov.go.jp/servlet/PcmFileDownload?seqNo=0000268158

JOGMEC signs a memorandum of cooperation with Brazil's Minas Gerais Economic Development Authority (SEDE) and Development Promotion Corporation (Invest Minas)
JOGMEC announced on February 7 that it has signed a memorandum of understanding (MOU) in the field of critical minerals with the Economic Development Authority of the Brazilian Federal State of Minas Gerais and the State Development Promotion Corporation (Invest Minas). The Brazilian state of Minas Gerais has long been known as an iron ore producing region, and is a thriving mining state with several Japanese companies investing in iron ore projects. In recent years, lithium exploration has been active and large lithium deposits have been discovered, attracting attention as the Lithium Valley. In addition, tantalum, which is important as a semiconductor material, and niobium, which is important as a stainless-steel material, are also produced, and JOGMEC provides investment support for projects of Japanese companies expanding into the country, diversifying important mineral supply sources to strengthen the supply chain. 

JOGMEC website (in Japanese):
https://www.jogmec.go.jp/news/release/news_10_00163.html

Establishment of a specialized organization to examine the safety of AI
On February 14, the Ministry of Economy, Trade and Industry (METI), announced that the government has established the AI Safety Institute in the 
Information-technology Promotion Agency, Japan (IPA), an organization that will study safety assessment methods for AI (artificial intelligence). This comes in response to growing international interest in the safety of AI, including the rapidly spreading generative AI. The AI Safety Institute will conduct research on AI safety evaluation, develop standards, and consider evaluation implementation methods. Business content will be continually reviewed in light of changes in society and technology, as well as domestic and international trends. It is also considering collaborating with related organizations such as the United States and the United Kingdom, which are taking the lead in discussions on the safety of AI. In the future, it will establish a secretariat within IPA and aim to recruit a wide range of human resources, including from the private sector, to grow our organization to several dozen people.

METI website:
https://www.meti.go.jp/english/press/2024/0214_001.html

Renesas acquires US semiconductor software development company for JP￥889 billion
Renesas Electronics announced on Februry15 that it will acquire American software company Altium. The acquisition price is AUD 9.1 billion  (approximately JP￥889 billion). The company develops and provides software that allows to design printed wiring boards, which are essential for semiconductors, on the cloud. The aim of the acquisition is to speed up the development of electronic components. All shares of Altium will be acquired through procedures under the Companies Act of Australia, where Altium is publicly traded. The acquisition is scheduled to be completed in the second half of 2024, subject to regulatory approval.By acquiring Altium, Renesas will consolidate the system design and integration on the cloud and create an environment that can efficiently provide services in a short period of time. Altium was founded in Australia in 1987, but is headquartered in California, USA. It has a large market share in printed circuit board design tools.

Renesas Electronics Corporation website:
https://www.renesas.com/us/en/about/press-room/renesas-acquire-pcb-design-software-leader-altium-make-electronics-design-accessible-broader-market

Toyota and Chiyoda Corporation to jointly develop world's smallest water electrolysis system
Toyota Motor Corporation and Chiyoda Corporation announced on February 5 that they will jointly develop a large-scale water electrolysis system that will be the world's smallest and achieve highly efficient manufacturing. The target is a 5MW class unit, an installation area of 2.5m x 6m, and a hydrogen production capacity of approximately 100kg/hour. The equipment developed by the two companies will have approximately half the installation space of typical equipment. In addition, while maintaining maintainability, it is possible to reduce transportability, shorten on-site construction periods, and reduce costs for civil engineering and construction work. To realize this device, Toyota will utilize Toyota's production and mass production technology for water electrolysis cell stacks using fuel cell technology, and Chiyoda Corporation's process plant design technology and large-scale plant construction technology. In the future, they will begin installing a water electrolysis system in the hydrogen park at Toyota's main factory in fiscal 2025, expand it to 10MW class. Progress will be published sequentially.

Toyota website:
https://global.toyota/en/newsroom/corporate/40388622.html

Panasonic Energy procures graphite for EV battery material from Australia
Panasonic Energy announced on February 9 that it will procure graphite for use as negative electrode material in electric vehicle (EV) batteries from an Australian materials manufacturer's U.S. factory. The proceeds will be used to purchase materials for Panasonic Energy's battery factory in the United States. Locally procuring materials in North America will help ensure a stable supply of batteries. The products will be procured from a factory in Tennessee, U.S. owned by Australia's Novonix. It is expected to purchase a total of 10,000 tons of graphite over a four-year period starting in 2025. Novonix's strength lies in its technology for producing graphite in a shorter time than conventional manufacturing methods. The amount of energy required for production is small, and carbon dioxide emissions can be reduced. Panasonic Energy operates an EV battery factory in Nevada, US. The new factory currently under construction in Kansas, USA, is scheduled to start operating in 2024. The company plans to further expand battery production in North America, and is establishing a system to stably procure raw materials for batteries in North America.

Panasonic Energy website:
https://news.panasonic.com/uploads/tmg_block_page_image/file/22011/en240209-6-1.pdf

Toyota Tsusho supports decarbonization of Kenya
On February 7, Toyota Tsusho signed a memorandum of understanding with the Kenyan government to achieve carbon neutrality. The company aims to develop renewable energy projects, localize the production of high-efficiency transformers, and realize multi-pathways using electric vehicles. Kenya has set a goal of 100% of its electricity generation coming from renewable energy by 2030. In order to contribute to the realization of carbon neutrality in Kenya, the company will promote four initiatives related to building a green energy value chain that connects the fields of "production, transportation, and consumption."

1)    Business development in renewable energy fields such as geothermal, solar, 
and wind power, which account for 90% of the country's power generation
2)    Expand the use of high-efficiency transformers, consider local production of 
high-efficiency transformers, and develop human resources with the aim of reducing power transmission and distribution losses and improving energy efficiency.
3)    Developing “multi-pathway (aiming to become carbon-free through multiple 
routes)” measures using electric vehicles including hybrid vehicles
4) Improving the productivity and strengthening the competitiveness of Toyota Tsusho's local companies involved in automobile assembly with the support of the country's National Automobile Policy (NAP)

Toyota Tusho website:
https://www.toyota-tsusho.com/english/press/detail/240207_006361.html

6-month residence status for digital nomads
The Immigration Services Agency announced on February 2 that it will create a qualification that will make it easier for IT (information technology) engineers working for overseas companies to stay in Japan. A new special status of residence will be created for those who can stay for six months. Capturing demand from highly skilled foreigners who want to work from anywhere through telework while sightseeing in Japan. It is expected to be used primarily by employees and managers of overseas consulting companies, as well as YouTubers who earn advertising revenue from overseas companies. Public comment regarding this system has begun on February 3.

Current qualifications are often used by tourists for short-term stays, and are not qualifications that allow them to work. The length of stay is also short, up to 90 days. The Immigration Bureau will grant you a status of residence based on the following requirements: 1) have an annual income of JP￥10 million or more; 2) have the nationality of approximately 50 countries/regions that allow you to enter Japan without a visa; and 3) enroll in private medical insurance. Sole proprietorships are permitted only when doing business overseas. Currently, there are approximately 35 million digital nomads worldwide, and the number is on the rise. Overseas, systems that allow digital nomads to stay are expanding. If the person meets conditions such as educational background and income, he/she has special qualifications that allow to stay for five years in Thailand, two years in South Korea, and one year or more in Spain. Japan's six-month qualification is extremely short, and there seems to be strong demand for an extension.

e-GOV. Public Comment by the Digital Agency (in Japanese):
https://public-comment.e-gov.go.jp/servlet/PcmFileDownload?seqNo=0000268158