APANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 31 October-06 November ,2026
News originally published by
EU-Japan Centre for Industrial CooperationThe EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Outline
▶ New Mother Ship Planned for Ultra-Deep-Sea Exploration, Including Sub Capable of Diving 11,000 Meters Below Sea Level
30 Oct, 2026
Photo Source: Yomiuri
Japan plans to build a next-generation deep-sea exploration vessel, with operations expected to begin as early as 2031. The vessel will carry manned and unmanned submersibles, including an AI-equipped autonomous underwater vehicle capable of reaching depths of 11,000 meters. The project aims to strengthen Japan's capabilities in deep-sea resource exploration, including rare earth minerals, while enhancing economic security and technological competitiveness amid growing U.S. and Chinese investment in deep-sea exploration.
Yomiuri:https://japannews.yomiuri.co.jp/politics/politics-government/20261030-356532/
▶ Quad ministers discuss supply chains, denounce export restrictions
01 Nov, 2026
Photo Source: Nikkei
Foreign ministers from Japan, the US, Australia and India reaffirmed their commitment to building reliable global supply chains and expressed concerns over economic coercion, arbitrary export restrictions and non-market practices affecting critical industries. They also announced initiatives to identify vulnerabilities in semiconductor supply chains and pledged over $85 million to support trusted AI technologies across the Indo-Pacific, highlighting growing cooperation on economic security and supply chain resilience.
▶ ‘Spaceport’ sites raising hopes of development across Japan
01 nov, 2026
Photo Source: Takeo Kato/Asahi
Japan's rural communities, including Taiki in Hokkaido, are developing spaceports to attract private investment, create jobs and revitalize regional economies. Taiki is investing ¥4.3 billion in a new rocket launch complex, with its first launch expected in fiscal 2027. Growing global demand for satellite launches is creating business opportunities, but technical failures and financial uncertainties highlight the challenges of establishing sustainable regional space industries.
Asahi: https://www.asahi.com/ajw/articles/16966276
▶ EU steps up subsea cable buildout to Japan and South Korea
02 Nov, 2026
Photo Source: Polar Connect
The EU is advancing plans for Arctic submarine cables to connect Europe with Japan and South Korea by 2031, aiming to strengthen digital connectivity and protect critical infrastructure from potential sabotage. The projects, including Polar Connect and Far North Fiber, seek to diversify data routes away from vulnerable existing corridors. However, limited Japanese government involvement and funding remain key challenges.
▶ Japan weighs standards for self-driving cars without steering wheels
03 Nov, 2026
Photo Source: Kyodo
Japan plans to revise its vehicle safety certification standards to accommodate fully autonomous vehicles without steering wheels or pedals, facilitating the mass production of self-driving taxis and other vehicles. The move aligns with international standards adopted by the UN’s WP.29 and supports Japan’s goal of deploying at least 10,000 Level 4 autonomous buses and taxis by fiscal 2030.
▶ Japan to bolster defenses with unified missile, artillery systems
04 Nov, 2026
Photo Source: Ground Self-Defense Force
Japan’s Ground Self-Defense Force plans to integrate its missile, artillery and air defense control systems into a unified platform to improve battlefield awareness and speed up commanders’ decisions. The ¥17.9 billion upgrade, led by Fujitsu, is expected to begin deployment as early as fiscal 2030. The initiative aims to strengthen Japan’s defence of its southwestern islands amid growing regional security concerns, particularly regarding China and Taiwan.
Nikkei Asia:https://asia.nikkei.com/politics/defense/japan-to-bolster-defenses-with-unified-missile-artillery-systems
▶ Japan lender leads $600m credit line to help Malaysia's Petronas cut CO2
05 Nov, 2026
Photo Source: Reuters
Japan's JBIC will lead a $600 million credit facility for Malaysia's Petronas to finance carbon capture, biofuels, and other decarbonization projects. The initiative strengthens Japan-Malaysia energy cooperation and supports the development of cross-border CO₂ storage infrastructure in Southeast Asia.
▶ Japan to back Vietnam's small-reactor push in revived nuclear cooperation
06 Nov, 2026
Nikkei Montage
Japan and Vietnam plan to sign an MoU to strengthen nuclear cooperation, focusing on introducing small modular reactors (SMRs) in Vietnam by around 2040. Japan will provide technology and support human resource development, potentially paving the way for the first Japanese-backed SMR project in Southeast Asia. The partnership will also cover energy infrastructure, including a high-efficiency gas-fired power plant, as well as AI research, talent development and AI safety cooperation. The initiative reflects Japan's broader efforts to deepen strategic and technological ties with Vietnam.
▶ Japan Approves ¥10 Billion Emergency Cybersecurity Package, Expanding AI-Based Vulnerability Checks
06 Nov, 2026
Photo Source: Asahi
Japan's government has approved ¥10 billion in emergency funding from its FY2026 reserve budget to strengthen cybersecurity in response to rising cyberattacks, data breaches and financial losses.
The measures include using AI to assess vulnerabilities in the critical systems of virtually all government agencies during FY2026, strengthening government coordination, enhancing cybersecurity at medical institutions and developing specialised personnel. The National Police Agency will procure equipment for cyber threat intelligence, analysis and investigations, while the Digital Agency will upgrade government-wide computers and communication networks. The government also plans to strengthen its Active Cybersecurity Defense capabilities to prevent cyberattacks.
Asahi: https://www.asahi.com/ajw/articles/17024840 (05 Nov,2026)
Nikkei (Japanese): https://www.nikkei.com/article/DGXZQOUA0611T0W6A101C2000000/ (06 Nov,2026)
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2. Business News
▶ Japan's Murata to invest $6.3bn in capacitor production for AI over 5 years
31 Oct, 2026
Photo Source: Nikkei
Japan's Murata Manufacturing plans to invest ¥1 trillion ($6.3 billion) over five years to expand its global production capacity for multilayer ceramic capacitors (MLCCs), driven by surging demand from AI data centres. The investment will include new facilities in Japan and expanded overseas production in Thailand and the Philippines. Murata aims to more than double MLCC sales by fiscal 2030, strengthening its position in the global AI and electronics supply chains.
Murata:https://corporate.murata.com/en-global/newsroom/news/company/general/2026/1030c
▶ Japan's Sojitz to import rare earth yttrium from Malaysia
31 Oct, 2026
Illustration by Reuters
Japan's Sojitz plans to begin procuring yttrium and other medium and heavy rare earths from Malaysia as early as 2027, in cooperation with Australia's Lynas Rare Earths. The move aims to reduce Japan's dependence on China following a sharp decline in Chinese yttrium oxide exports to Japan. Yttrium is an essential material for semiconductor manufacturing equipment, highlighting Japan's efforts to strengthen supply chain resilience for critical minerals.
Nikkei Asia:https://asia.nikkei.com/spotlight/supply-chain/japan-s-sojitz-to-import-rare-earth-yttrium-from-malaysia
▶ Toyota and Waymo to roll out driverless robotaxis in Japan in 2027
31 Oct, 2026
Nikkei Asia:Toyota Motor/Nikkei
Toyota and Waymo plan to launch Level 4 autonomous robotaxi services in Japan in 2027, using Toyota's bZ4X electric SUVs equipped with Waymo's self-driving technology. Initial operations will begin with a small fleet, with potential expansion to the U.K. and other markets. The partnership strengthens Toyota's position in autonomous mobility as Japan accelerates efforts to catch up with the U.S. and China in robotaxi development.
▶ Samsung, Japan Inc. move closer on chips at R&D hub in Yokohama
01 Nov, 2026
Photo Source: Azusa Ushio/Asahi
Samsung Electronics has opened a ¥40 billion semiconductor R&D center in Yokohama to strengthen cooperation with Japanese companies, particularly in advanced packaging technologies for AI and memory chips. The facility is already working with at least 50 Japanese companies and aims to accelerate product development by evaluating Japanese-sourced materials locally. The project highlights growing South Korea-Japan industrial cooperation and efforts to build more resilient semiconductor supply chains amid intensifying U.S.-China tensions.
Asahi:https://www.asahi.com/ajw/articles/16889266
▶ Mitsubishi Heavy gears up to boost US gas turbine production
02 Nov, 2026
Photo Source: Mitsubishi Heavy Industries
Mitsubishi Heavy Industries plans to invest $490 million to expand its gas turbine manufacturing and maintenance facilities in Georgia, nearly doubling the plant's production space. The investment comes amid surging US electricity demand driven by AI data centres and supports the company's goal of doubling large gas turbine production capacity by fiscal 2030. The expansion highlights growing demand for reliable power generation and Mitsubishi Heavy Industries' strengthening position in the global energy market.
Nikkei Asia:https://asia.nikkei.com/business/energy/mitsubishi-heavy-gears-up-to-boost-us-gas-turbine-production
▶ Japan's Aisin develops new type of AI chip that cuts energy use 98%
03 Nov, 2026
Photo Source: Kazuho Fujiwara
Japanese automotive supplier Aisin, in collaboration with Tohoku University, has developed an MRAM-based semiconductor that reduces power consumption by approximately 98% compared with conventional chips. The technology also cuts AI-based image recognition processing times by around 90%, offering significant potential for energy-efficient edge AI applications in the automotive industry.
▶ Japan's IHI wins key role in Westinghouse's new Poland nuclear plant
03 Nov, 2026
Photo Source: Reuters
Japanese engineering company IHI has secured a preliminary contract from Westinghouse Electric to supply key equipment for Poland’s first nuclear power plant, which will use AP1000 reactors and is expected to begin operations in 2036. IHI plans to manufacture containment vessels and steel modules in Japan from 2028, with the project supporting its expansion into the global nuclear energy market.
Nikkei Asia:https://asia.nikkei.com/business/energy/japan-s-ihi-wins-key-role-in-westinghouse-s-new-poland-nuclear-plant
▶ Toyota ready to 'regain market share' in China on expanded local sourcing
05 Nov, 2026
Photo Source: Reuters
Toyota aims to regain market share in China by expanding local sourcing, working more closely with Chinese partners and developing new EV models specifically for the Chinese market. The strategy marks a shift away from its traditional reliance on Japanese-affiliated suppliers, as the company faces intense competition from domestic automakers. Despite a 25% year-on-year decline in China sales, Toyota raised its full-year net profit forecast to ¥3.57 trillion, supported by strong hybrid sales and a weaker yen. The company also announced the creation of Toyota Robotics, aiming to make robotics and automation a new business pillar by 2040.
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