JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 05 September-11 September,2026
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Outline
▶ Japan plans AI-powered satellites to speed counterstrike decisions
05 Sep, 2026
Nikkei montage/Source photos by Nikkei and Japan Aerospace Exploration Agency
Japan’s Ministry of Defence plans to develop AI-equipped satellites that can analyze surveillance data in space and identify enemy targets in real time. The goal is to speed up decision-making and improve the accuracy of Japan’s long-range missiles. Japanese companies will develop test satellites from fiscal 2027 to 2029, with space launches planned from fiscal 2030 onward. Japan hopes this technology will strengthen its defence capabilities and keep pace with the U.S. and China in the use of AI in space.
Nikkei Asia:https://asia.nikkei.com/politics/defense/japan-plans-ai-powered-satellites-to-speed-counterstrike-decisions
▶ Japan provides $1.4bn in subsidies to Imabari, other shipbuilders
05 Sep, 2026
Photo Source: Imabari Shipbuilding
The Japanese government will provide ¥213.1 billion in subsidies over 10 years to major shipbuilders, including Imabari Shipbuilding and Japan Marine United, to strengthen the industry. The companies will invest in new facilities, larger cranes, automation, and robots. The government aims to double Japan’s domestic shipbuilding capacity by 2035 and revive the industry through public-private investment.
▶ Trade Minister Ryosei Akazawa Says AI, Chips Are Key Targets of Japan’s $500 Bil. Investment in U.S.
06 Sep, 2026
Photo Source: Kojiro Sekine/Yomiuri
Japan plans to focus much of its $550 billion investment in the U.S. on AI and semiconductor manufacturing, according to Trade Minister Ryosei Akazawa. So far, six investment projects have been announced, mainly in the energy sector, but future projects are expected to cover a wider range of industries. Further projects are still being selected and will take time to finalise.
Yomiuri:https://japannews.yomiuri.co.jp/politics/politics-government/20260906-347456/
▶ Japan May Deploy Over 100 Satellites for Surveillance Network
06 Sep, 2026
Photo Source: Yomiuri
Japan is considering deploying more than 100 satellites to strengthen its surveillance network and improve its ability to detect and track moving targets such as naval vessels and missile launchers. The system would support Japan’s long-range missile capabilities and strengthen deterrence against threats from China and North Korea. The government also plans to involve private companies in financing and operating the satellites, aiming to strengthen both national security and Japan’s space industry.
Yomiuri:https://japannews.yomiuri.co.jp/politics/defense-security/20260906-347446/
▶ Business Opportunities Increase as Cyberattacks Become Common, Japan Firms Using AI-Backed Systems for Better Defense
07 Sep, 2026
Photo Source: Yomiuri
Japan’s companies are increasingly using AI to strengthen cyber defence as cyberattacks cause serious business disruptions and data leaks. Hitachi and NEC are launching AI-based services to identify and fix system vulnerabilities, while SoftBank and Fujitsu are expanding their cybersecurity teams and services. The growing demand for AI-powered cyber defence is creating a major business opportunity in Japan. However, Japan also faces concerns about its heavy reliance on U.S. and Chinese AI models, including potential data leaks and restrictions on access to foreign AI technologies.
Yomiuri:https://japannews.yomiuri.co.jp/business/companies/20260906-347460/
▶ Japan to fund biofuel projects abroad for energy security at home
10 Sep, 2026
Photo Source: Reuters
Japan’s government plans to allow JOGMEC to co-invest with Japanese companies in overseas biomass fuel projects to diversify energy supplies and reduce dependence on fossil fuels. The government also plans to subsidize domestic facilities producing bioplastics and bioethanol, supporting around 20 projects by fiscal 2036. The initiative aims to strengthen Japan’s energy security, reduce costs through larger-scale production, and expand the bio-based products market.
Nikkei Asia:https://asia.nikkei.com/business/energy/japan-to-fund-biofuel-projects-abroad-for-energy-security-at-home
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2. Business News
▶ Launch of a SVHC Content Analysis Service to Comply with the Latest REACH Regulations
03 Sep, 2026
Photo Source: OKI
OKI Engineering (OEG), a unit of Japan’s OKI Group, will launch a domestic SVHC Content Analysis Service on September 4, 2026, to help manufacturers exporting to Europe comply with the latest EU REACH regulations. The service provides end-to-end quantitative analysis and reporting in Japan for all 253 SVHCs covered by the 1st through 35th updates of the REACH Candidate List. By eliminating the need to send sensitive products overseas for testing, the service aims to enable faster and more reliable compliance while reducing confidentiality, IP leakage, and quality-control risks. OEG targets ¥100 million in cumulative sales by FY2027 and plans to expand its analysis services to other regulated substances.
▶ Japan's Rakuten to debut satellite-to-cell service with Starlink rival AST
05 Sep, 2026
Photo Source: Mai Ishitsubo/Nikkei
Rakuten plans to launch a direct-to-smartphone satellite communication service in Japan as early as this year in partnership with AST SpaceMobile. The service will support voice calls and video communication, and is expected to be useful in rural areas and during disasters. The Japanese government is also supporting the project with up to ¥150 billion in subsidies. Rakuten hopes the service will help expand its network coverage, while competing with SpaceX’s Starlink.
▶ Japan's MS&AD looks to enter Europe's reinsurance broker market
05 Sep, 2026
Photo Source: Nikkei
MS&AD Insurance Group Holdings is considering expanding its European reinsurance brokerage business, particularly in the U.K. and other European markets, through its U.S. subsidiary MS Transverse.
MS Transverse has rapidly grown its premiums to around $3 billion, leveraging its network of MGAs and reinsurers in the U.S. The company sees strong growth potential in Europe, where the MGA market expanded 15% last year to $23 billion. MS Transverse CEO John Fitzgerald also sees potential for applying the U.S. model to Japan, where the MGA and fronting markets remain relatively underdeveloped.
Nikkei Asia:https://asia.nikkei.com/business/insurance/japan-s-ms-ad-looks-to-enter-europe-s-reinsurance-broker-market
▶ ABN Amro unit to enter Japan electric power trading market
06 Sep, 2026
Photo Source: Shintaro Ino/Nikkei
ABN Amro Clearing, a major Dutch financial institution, plans to enter Japan’s electricity futures market through the Tokyo Commodity Exchange. Its entry is expected to improve the market’s credibility and liquidity, which has traditionally been low. The Tokyo Commodity Exchange has been attracting major financial institutions, and trading volume already increased fivefold in 2025 after MUFG Bank joined.
Nikkei Asia:https://asia.nikkei.com/business/energy/abn-amro-unit-to-enter-japan-electric-power-trading-market
▶ Hitachi to sell Nokia drones for automated inspections
08 Sep, 2026
Photo Source: Hitachi
Hitachi has become the first Japanese company to acquire domestic sales rights for Nokia’s autonomous drones. It plans to combine the drones with its existing control systems to automate inspections of large facilities and improve safety and efficiency. The drones can operate and recharge autonomously and can also be remotely deployed to inaccessible areas during disasters. Hitachi is targeting customers such as power, steel and chemical companies, as well as local governments and emergency services.
Asahi: https://www.asahi.com/ajw/articles/16871733
▶ Japan shipping companies eye sails, kites to cut fuel consumption
08 Sep, 2026
Photo Source: Nami Matsuura/Nikkei
Japanese shipping companies are developing wind-assisted propulsion technologies, including rigid sails, suction sails, and kites, to reduce fuel consumption and CO₂ emissions. Mitsui O.S.K. Lines’ new LNG carrier with two rigid sails could cut fuel use by up to 12%, while NYK Line and Kawasaki Kisen Kaisha are also developing similar technologies. These innovations are expected to support the shipping industry’s transition to cleaner fuels and its goal of achieving net-zero emissions by around 2050.
▶ Japan consortium extends perovskite solar cell life by 50%
08 Sep, 2026
Photo Source: Yuki Nakao, Takako Fujiu/Nikkei
Toshiba, Shin-Etsu Chemical, and Niigata University have developed a perovskite solar cell that is 1.5 times more durable than existing products, achieving around 3,000 hours of operation under harsh heat and humidity conditions. The team aims to extend its lifespan beyond 20 years and commercialize the technology in the 2030s. The development could help Japanese companies compete with Chinese manufacturers, which currently lead the global solar market and have a strong position in perovskite technology. Japan also sees the technology as important for expanding domestic solar power toward its 2040 target.
Nikkei Asia:https://asia.nikkei.com/business/technology/japan-consortium-extends-perovskite-solar-cell-life-by-50
▶ Japan's DMG Mori, Okuma ramp up cyberdefense for machine tools
09 Sep, 2026
Photo Source:Nozomi Okubo/Nikkei
Japanese machine-tool makers such as DMG Mori and Okuma are strengthening cybersecurity as demand from European and U.S. customers grows. The EU’s Cyber Resilience Act is a major driver, requiring manufacturers to incorporate cybersecurity into connected equipment and address vulnerabilities. DMG Mori has introduced remote software updates, while Okuma is developing CRA-compliant systems and strengthening protection of sensitive manufacturing information. With the rise of physical AI and connected machines, protecting machining data and production settings will become increasingly important for maintaining competitiveness in overseas markets.
▶ Honda invests in rare-earth-free magnet startup Niron Magnetics
09 Sep, 2026
Photo Source: AP & Reuters
Honda is investing in U.S. startup Niron Magnetics, which develops rare-earth-free magnets made from iron and nitrogen. The investment aims to help expand production and reduce dependence on China, which dominates the global rare-earth supply chain. Niron plans to produce 1,500 tons of magnets annually by 2028, and the technology could be used in electric vehicles, smartphones, and robotics. The investment also reflects growing cooperation between Japan and the U.S. to strengthen critical mineral supply chains.
Nikkei Asia: https://asia.nikkei.com/business/markets/commodities/honda-invests-in-rare-earth-free-magnet-startup-niron-magnetics
▶ Japan's large-ship hydrogen engine cuts CO2 emissions 95%
09 Sep, 2026
Photo Source: Mitsui O.S.K. Lines
Japan Engine and its partners, including Kawasaki Heavy Industries and Yanmar Power Technology, have developed a hydrogen-fueled engine for large commercial ships that can reduce greenhouse gas emissions by more than 95%. The engine is expected to be installed on a Mitsui O.S.K. Lines vessel as early as 2027 for demonstration operations. Backed by up to ¥21 billion in NEDO subsidies, Japan Engine aims to commercialize hydrogen engines in the 2030s while also pursuing ammonia engines. The company’s shift toward maintenance and licensing has already significantly improved profitability, strengthening its position in the next-generation ship engine market.
Nikkei Asia:https://asia.nikkei.com/business/transportation/japan-s-large-ship-hydrogen-engine-cuts-co2-emissions-95
▶ NTT's optical AI tech fund picks Spanish startup as first target
09 Sep, 2026
Photo Source: Marie Yoshimura/Nikkei
NTT’s $500 million IOWN AI Fund has made its first investment, joining a $125 million funding round for Spanish startup iPronics, which develops optical switches for AI data centers. The investment aims to help NTT find partners and customers to commercialize its IOWN optical technology. As AI data centers consume more electricity, optical communications could help reduce power use, while NTT faces strong competition from U.S. companies such as Nvidia and Broadcom.
▶ Sumitomo partners with Sakana AI to push Japan-built AI model
09 Sep, 2026
Photo Source: Akira Kodaka/Nikkei
Sumitomo Corporation, SCSK, and Sakana AI have formed a partnership to bring Sakana AI’s Japanese-developed AI models to around 100,000 client companies. Sakana AI will develop the AI technology, while SCSK will support implementation and system integration, and Sumitomo will introduce the technology to its broad customer base. The partnership will initially target security-conscious industries such as finance and manufacturing, before expanding to small and midsize businesses. The goal is to accelerate the adoption of homegrown Japanese AI and reduce reliance on overseas AI services.
▶ Mitsubishi Heavy tech makes hydrogen from natural gas without emitting CO2
10 Sep, 2026
Photo Source: Taito Kurose/Nikkei
Mitsubishi Heavy Industries has developed a methane pyrolysis system that produces hydrogen from natural gas without releasing gaseous CO₂. The system separates methane into hydrogen and solid carbon, which is easier to store and recycle. The company plans to start testing the technology in 2028 by combining it with gas turbines and gradually increase the use of hydrogen for power generation. Mitsubishi Heavy aims to sell the system together with its gas turbines as a lower-carbon solution for power companies, while also continuing to develop other hydrogen production methods such as water electrolysis.
▶ Japan's Fanuc, Google team up on AI-automated welding robots
11 Sep, 2026
Photo Source: Nikkei
Fanuc and Google have developed an AI-powered welding system that allows robots to work directly from paper blueprints without specialized programming. The system uses Google’s Gemini Enterprise AI to read welding instructions, including handwritten notes, and enables robotic arms to perform the work automatically. Fanuc plans to offer the system to small and midsize businesses in industries such as electrical components and furniture through a subscription model.
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