JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 29 August-04 September,2026
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Outline
▶ Japan to Strengthen Integrated Support for Cutting-Edge Tech to Boost Economic Security
30 Aug, 2026
Photo Source: Yomiuri
Japan plans to strengthen its K Program, providing more integrated government support for cutting-edge technologies from R&D through demonstration, with national security and economic security becoming a greater priority. The program will focus on strategic technologies such as AI, quantum technology and rare-earth development, including deposits near Minami-Torishima Island. It will also place greater emphasis on dual-use technologies with both civilian and military applications. Launched in 2022 with a ¥500 billion fund, the K Program has so far supported 51 key technologies involving universities and companies.
Yomiuri:https://japannews.yomiuri.co.jp/science-nature/technology/20260830-346219/
▶ Japan Foreign Ministry Sets Up Cyber Security Policy Division
01 Sep, 2026
Photo Source: Yomiuri
Japan’s Foreign Ministry has established a new Cyber Security Policy Division in response to growing cyberattack risks driven by advances in AI. The division will strengthen coordination with allied, like-minded and other partner countries, contribute to international rule-making, and support cyber capacity-building in developing countries. Around 10 to 20 staff members will serve concurrently in the new division.
Yomiuri:https://japannews.yomiuri.co.jp/news-services/jiji-press/20260901-346583/
▶ The 8th Meeting of Ministers of Foreign Affairs of the Visegrad Group (V4) Plus Japan
01 Sep, 2026
Photo Source: MOFA
On 01 September, Japan’s Foreign Minister Toshimitsu Motegi met with the foreign ministers of the Visegrad Four (V4) countries—Slovakia, Czechia, Hungary, and Poland—in Slovakia. They agreed to strengthen cooperation in science and technology, AI governance, and the Western Balkans, while also promoting stable supply chains and Japan-EU cooperation. They also reaffirmed their shared commitment to a free and open international order and discussed regional issues including Ukraine, the Middle East, North Korea, and the Indo-Pacific.
MOFA: https://www.mofa.go.jp/erp/erp_2/pageite_000001_01799.html
▶ Japan, Belgium Defense Chiefs Agree to Deepen Security Ties
01 Sep, 2026c
Photo Source: JIJI
Japan and Belgium agreed to deepen security and defence cooperation, reflecting the growing link between Euro-Atlantic and Indo-Pacific security. Belgium’s new defence attaché in Tokyo will strengthen ties, while Belgian Defence and Trade Minister Theo Francken also expressed interest in expanding defence industry cooperation with Japan.
Jiji: https://jen.jiji.com/jc/eng?g=eco&k=2026083100986
▶ Foreign business owners leave Japan in droves under tighter visa rules
02 Sep, 2026
Photo Source: Takayuki Yao/Nikkei
Japan has sharply tightened the requirements for business manager visas, including raising the minimum capital from ¥5 million to ¥30 million. As a result, 953 foreign visa holders left Japan in the first half of 2026, nearly four times more than a year earlier. The government says the changes are meant to prevent abuse of the visa system, but concerns remain that they could hurt small businesses and Japanese companies that support them.
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2. Business News
▶ Kioxia-Sandisk venture to spend 1.8 trillion yen on new chip factory
28 Aug, 2026
Photo Source:Takeshi Iwashita/Asahi
Kioxia will invest 1.8 trillion yen to build a new facility at its Kitakami plant in Iwate, with operations expected to begin in fiscal 2029. The investment will be made with U.S. partner Sandisk and is expected to receive government subsidies. Kioxia plans to invest about 5 trillion yen domestically by 2032, amid intensifying global competition in semiconductor manufacturing.
Asahi:https://www.asahi.com/ajw/articles/16843810
▶ Honda, Nissan to reach deal on joint development of vehicle software
29 Aug, 2026
Photo Source: Nikkei
Honda and Nissan are expected to agree on jointly developing an operating system and onboard computers for future vehicles, potentially from 2029. The partnership will focus on software-defined vehicles (SDVs), allowing vehicles to receive software updates over the air like smartphones. The technology will be designed for EVs, hybrids and gasoline-powered cars, with Mitsubishi Motors also considering its adoption. The collaboration aims to reduce development costs, improve vehicle data utilization and strengthen competitiveness against Tesla and Chinese automakers.
▶ Japan defense forces to use NTT's optical network tech for communications
30 Aug, 2026
Photo Source: Ryota Ogata/Nikkei
Japan’s Defence Ministry plans to adopt NTT’s All-Photonics Network (APN) technology to upgrade communications between Self-Defence Forces bases nationwide. The high-capacity, low-latency network will enable faster transmission of data from radars, sensors and drones for AI-based analysis, supporting quicker decision-making. The project is expected to be included in Japan’s FY2027 budget, with operations potentially beginning as early as FY2028.
▶ AI robots and drones to assist in Fukushima nuclear plant cleanup
30 Aug, 2026
Photo Source: Akitoshi Sugiura/Nikkei
Japan’s government and TEPCO plan to establish a consortium bringing together AI developers, manufacturers and universities to use AI-powered robots and drones in the Fukushima Daiichi decommissioning process. The technology could help survey highly radioactive areas, collect data and remove obstacles without exposing workers to radiation. With 880 tons of radioactive debris still to be removed, the government is seeking about ¥400 billion for FY2027 to support related projects. The decommissioning is targeted for completion by 2051.
▶ ITOCHU Announces Investment in Ammonia Storage Terminal Business at Port Pipavav, India
31 Aug, 2026
Photo Source: ITOCHU
ITOCHU has invested in India’s first independent ammonia storage terminal at Port Pipavav in Gujarat, which began operations in August 2026. The facility includes a 36,000-ton ammonia storage tank and related logistics infrastructure. ITOCHU aims to strengthen ammonia supply chains in India and expand into clean energy applications, including ammonia fuel and hydrogen carriers.
ITOCHU: https://www.itochu.co.jp/en/news/press/2026/260831.html
▶ Japan's JFE Engineering to use Nobel-winning material for carbon capture
02 Sep, 2026
Photo Source: JFE Engineering
JFE Engineering is field-testing a carbon capture system using Nobel Prize-winning metal-organic frameworks (MOFs) at a waste-to-energy facility in Tokyo. The technology requires no heating and is expected to cut operating costs by half compared with conventional methods, while capturing more than 90% of carbon emissions from waste incineration. Practical application is planned for 2030.
▶ Japan's Mitsubishi Heavy and NEC team on defense drones
03 Sep, 2026
Photo Source: Reuters
Mitsubishi Heavy Industries and NEC are forming a strategic defence partnership to develop domestically produced military drones and AI-powered command-and-control systems. The move aims to reduce Japan’s reliance on Chinese-made drones, strengthen its domestic defence industry, and modernize its military capabilities.
▶ ASML to expand Japan workforce to aid next-gen chipmakers Rapidus, TSMC
04 Sep, 2026
Photo Source: ASML
ASML Japan plans to expand its workforce from 500 to about 700 employees by 2030 to support Japan’s growing advanced semiconductor industry. It will increase staff near Rapidus in Hokkaido and is considering expanding in Kumamoto to support TSMC and Sony/TSMC projects. ASML’s lithography equipment is critical for advanced chip production, and Japan has become an increasingly important market, with sales rising about 40% in 2025 to €1.2 billion. The company also plans to strengthen partnerships with Japanese materials companies and research institutions.
▶ Japanese robots go beyond factory floor to take on tree cutting, lab work
04 Sep, 2026
Photo Source: Yuta Adachi/Nikkei
Japan is expanding the use of humanoid robots beyond manufacturing, including tree cutting, infrastructure maintenance, retail, and drug research. The market could reach ¥4 trillion by 2040, but Chinese companies currently dominate the global market. Japanese companies are therefore focusing on high precision, durability, and specialized applications to stay competitive.
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