JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 06 -12 June,2026
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Outline
▶ Japan Govt Invests More in Chipmaker Rapidus
5 June, 2026
Photo Source: JIJI
The Japanese government has invested an additional ¥150 billion in Rapidus Corp. to support the development of advanced semiconductor production, bringing total recent public funding to ¥250 billion. The funding will help the company scale up production of 2-nanometer chips and advance research into 1.4-nanometer technology. The government described Rapidus as a key part of its growth strategy and said it may increase its voting rights to up to 60% if the company faces financial difficulties, though it would normally limit its stake to avoid involvement in management.
JIJI: https://jen.jiji.com/jc/eng?g=ind&k=2026060500676
▶ China's rare-earth exports to Japan drop 80%, sending companies scrambling
8 June, 2026
Nikkei montage/source photos by Reuters
China’s rare earth exports to Japan have sharply declined due to tighter export controls, with some key materials used in EV motors and advanced technologies dropping significantly or reaching zero. This has raised concerns among Japanese manufacturers about potential supply disruptions. In response, Japanese companies are seeking alternative sources in countries like Australia and India, as well as investing in recycling and non-rare-earth technologies, though securing stable substitutes remains difficult.
Nikkei Asia: https://asia.nikkei.com/business/materials/china-s-rare-earth-exports-to-japan-drop-80-sending-companies-scrambling
▶ Japan to launch AI-run bioscience lab for 24-hour research
9 June, 2026
Illustration: Nikkei
The Japanese government plans to launch an AI- and robot-operated automated bioscience laboratory, with around ¥8 billion in funding over FY2026–2027 and a target start in FY2027. The facility will focus on biotechnology fields such as genetics, proteins and brain activity, with AI directing experiments and analyzing data through robotic systems. Researchers across Japan will have cloud access to the data and research processes, as Japan seeks to improve research efficiency in line with similar AI-driven laboratory initiatives in the U.S. and Europe.
Nikkei Asia:https://asia.nikkei.com/business/science/japan-to-launch-ai-run-bioscience-lab-for-24-hour-research
▶ Japan Urged by Govt Panel to Defense Export, Tech Ties with Like-Minded Nations
9 June, 2026
Photo Source: Yomiuri
A Japanese government advisory panel has called for stronger cooperation with like-minded countries on defense equipment exports and technological development as part of discussions on revising Japan’s security strategy. The recommendations were made in the context of the country’s “Free and Open Indo-Pacific” initiative and growing concerns over China’s economic and military influence.
The panel also discussed Japan’s three non-nuclear principles, with differing views expressed on whether the principle of not allowing the introduction of nuclear weapons into Japan should be reviewed.
Yomiuri: https://japannews.yomiuri.co.jp/politics/defense-security/20260609-331678/
▶ Malaysia to promise Japan maximum possible LNG, naphtha
10 June, 2026
Photo Source: Nikkei
Japan and Malaysia are set to deepen cooperation on energy, economic security, and emerging technologies. At an upcoming summit, Malaysia is expected to pledge increased supplies of LNG and naphtha to help Japan diversify its energy sources amid supply challenges. The two countries will also discuss strengthening supply chains for critical materials such as urea and rare earth-related inputs, in response to global trade tensions and export restrictions. In addition, they plan to expand collaboration on nuclear energy, artificial intelligence, and its applications in areas such as agriculture, transport, education, and disaster prevention, while establishing regular policy-level AI dialogues.
Nikkei Asia:https://asia.nikkei.com/business/energy/malaysia-to-promise-japan-maximum-possible-lng-naphtha
▶ Japan, Italy set to deepen ties in semiconductors, space
10 June, 2026
Photo Source: Kyodo
Japan and Italy are expected to strengthen cooperation in semiconductors, space, AI, biotechnology, and disaster resilience at next week's summit in Rome. The two governments plan to announce agreements supporting joint semiconductor R&D, closer industry collaboration, and stronger critical mineral supply chains. The summit is also expected to promote cooperation in space technologies, including satellite data analysis and space debris mitigation, reflecting both countries' focus on advanced technologies and economic security.
Mainichi:https://mainichi.jp/english/articles/20260609/p2g/00m/0na/039000c
▶ Japan to Support Economic Security Biz Projects Abroad
10 June, 2026
Japan’s parliament passed a law to strengthen economic security by supporting overseas infrastructure projects that improve the resilience of international transport networks. The government will help attract private investment by taking on part of the risk through subordinated financing via Japan Bank for International Cooperation, including projects such as overseas refueling bases. In addition, Research Institute of Economy, Trade and Industry will establish a think tank on economic security policy, and a new public–private council will be created to address supply chain challenges.
JIJI: https://jen.jiji.com/jc/eng?g=eco&k=2026061000331
▶ Japan to help content industry sue over copyright infringement abroad
11 June, 2026
Photo Source: Kazuyuki Okudaira/Nikkei
The Japanese government is considering creating an organization to help domestic companies and creators deal with overseas intellectual property infringement cases by providing legal support and evidence gathering. This is aimed at strengthening Japan’s content industry and expanding overseas sales. The move responds to rising losses from piracy, counterfeit goods, and AI-related copyright issues affecting Japanese content abroad.
Nikkei Asia:https://asia.nikkei.com/politics/japan-to-help-content-industry-sue-over-copyright-infringement-abroad
▶ Japan, UK to create startup support fund for dual-use tech
11 June, 2026
Photo Source: Shintaro Ino/Nikkei
Japan and the U.K. plan to launch a joint fund worth several billion yen to support startups developing dual-use technologies such as AI, quantum technology, drones, and space technologies. The initiative, to be announced at the Japan–U.K. summit in London, is part of broader cooperation on economic security, advanced technology, and defense, including the GCAP next-generation fighter jet program.
▶ US tungsten scrap exports to Japan soar on Chinese curbs
11 June, 2026
Photo Source: Reuters
U.S. exports of recycled tungsten scrap to Japan have surged sharply as Chinese export restrictions tighten and global demand for the critical metal increases. Japan is increasingly sourcing tungsten scrap from the U.S. and other countries to secure supply for industrial use, while overall exports from the U.S. have also risen significantly. At the same time, China remains a dominant player in the tungsten market and is both restricting exports and actively buying scrap abroad. These shifting trade flows highlight growing competition for tungsten and rising concerns over supply chain security among major industrial economies.
Nikkei Asia:https://asia.nikkei.com/spotlight/supply-chain/us-tungsten-scrap-exports-to-japan-soar-on-chinese-curbs
▶ China's hydrogen push outstrips Japan's in new fuel race
12 June, 2026
Nikkei montage/Source photo by Getty Images
China is rapidly expanding its hydrogen economy through strong government subsidies, aiming to increase fuel-cell vehicles (FCVs) to 100,000 by 2030 and build out hydrogen infrastructure. Hydrogen is seen as a strategic solution for clean transportation, energy security, and decarbonization, particularly for heavy-duty trucks and industrial applications. In contrast, Japan's hydrogen ambitions have progressed more slowly due to high costs, limited infrastructure, and insufficient government support. While Japan remains committed to hydrogen and fuel-cell technology, industry leaders are urging greater public investment to remain competitive as China accelerates development and seeks leadership in the next generation of clean energy technologies.
Nikkei Asia:https://asia.nikkei.com/spotlight/policy-asia/china-s-hydrogen-push-outstrips-japan-s-in-new-fuel-race
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2. Business News
▶ Tokyo Gas to co-develop Malaysia offshore LNG terminal
8 June, 2026
Photo Source: Tokyo Gas
Tokyo Gas will participate in the joint development of an offshore LNG terminal in Malaysia using a floating storage and regasification unit (FSRU), alongside Gas Malaysia and Dutch infrastructure firm VTTI. The project, estimated at $491–736 million, is expected to provide a lower-cost and faster-to-deploy alternative to a land-based terminal, with a regasification capacity of 6 million metric tons per year. The project reflects growing LNG import needs in Malaysia amid rising electricity demand and declining domestic gas production, while leveraging Tokyo Gas’s experience in LNG infrastructure and FSRU operations.
Nikkei Asia:https://asia.nikkei.com/business/energy/tokyo-gas-to-co-develop-malaysia-offshore-lng-terminal
▶ Mitsubishi Electric and Finland’s VTT Establish Core Technology for Direct Ocean Capture
9 June, 2026
Photo Source: Mitsubishi Electric
Mitsubishi Electric and VTT Technical Research Centre of Finland have completed core development of a Direct Ocean Capture (DOC) system that removes CO₂ from seawater as part of carbon removal technology development. The system uses electrochemical processes to extract dissolved carbon from seawater, enabling both carbon capture and potential utilization in fuels and industrial materials. The partners aim to scale up the technology through coastal demonstrations and seek additional collaborators for commercialization, positioning it as a scalable solution for carbon neutrality and emissions reduction.
Mitsubishi Electric: https://www.mitsubishielectric.com/en/pr/2026/0609_co/
▶ Panasonic looks to quadruple AI-related sales with data center batteries
9 June, 2026
Photo Source: Nikkei, Panasonic
Panasonic Holdings plans to increase AI infrastructure-related sales to ¥2 trillion by fiscal 2030, driven by growing demand for data center power solutions. The company is expanding production of battery backup units (BBUs), lithium-ion batteries and AI-related electronic components, while introducing new products designed to improve data center power efficiency and reliability. The move reflects Panasonic’s strategy to strengthen its position in the rapidly growing AI infrastructure market, despite increasing competition and falling battery prices driven by Chinese manufacturers.
▶ Japan's JGC bets on carbon-feeding bacteria to create bioplastics
10 June, 2026
Photo Source: JGC Holdings
JGC Holdings has opened what it calls the world’s first research facility in Kobe dedicated to producing bioplastics using bacteria that convert carbon dioxide, hydrogen, and oxygen into plastic polymers. The project aims to scale up gas fermentation technology, with plans for commercial production by 2030. The facility will initially focus on biodegradable plastics made by hydrogen-oxidizing bacteria, with long-term goals of using captured CO₂ from industrial emissions and the atmosphere. Supported by the Japanese government, the initiative is designed to advance carbon neutrality, energy security, and new industrial growth. JGC plans to leverage its engineering expertise and partnerships with startups to overcome technical challenges, positioning biomanufacturing as a future growth pillar amid declining performance in its traditional plant construction business.
▶ Japan's Mitsubishi HC, Canada's Brookfield to buy European wind, solar farms in AI play
10 June, 2026
Photo Source: Reuters
Mitsubishi HC Capital and Brookfield plan to jointly acquire renewable energy assets across Europe, targeting wind and solar power plants in countries including the U.K., France, and Finland. The partnership aims to secure 2–3 GW of generation capacity through investments of around €400 million in the first phase. The move is driven by rising electricity demand from AI data centers and growing interest in renewable energy as Europe seeks greater energy security and reduced reliance on imported fuels.
▶ Shin-Etsu to set up rare-earth smelter in Japan to ease reliance on China
10 June, 2026
Shin-Etsu Chemical plans to build a new rare-earth refinery in Japan to expand production and reduce reliance on China. The facility, to be located in Fukui Prefecture, will support supply of key materials for EV motors and semiconductors, with part of the investment subsidized by the Japanese government.
The move comes as China dominates global rare-earth refining and has tightened export controls, prompting Japan to diversify supply sources and strengthen domestic production capacity, alongside efforts by other Japanese firms such as Mitsui Kinzoku and Sumitomo Metal Mining.
▶ Japanese Semiconductor Maker Rapidus to Sign Chip Development Pacts with British, Italian Bodies
10 June, 2026
Photo Source: Yomiuri
Rapidus plans to strengthen its presence in Europe through R&D partnerships with government-backed semiconductor organizations in the U.K. and Italy. The company will sign cooperation agreements covering joint research and technology sharing to support its efforts to expand future customer opportunities. The initiative aligns with Japan’s economic security strategy and aims to diversify semiconductor supply chains. Rapidus, which is targeting mass production of next-generation chips in Hokkaido by fiscal 2027, continues to receive strong government support and is seeking to broaden its customer base beyond its current U.S.-focused pipeline.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20260610-331825/
▶ NTT sets sights on Nvidia, AI race with $500m optical network fund
11 June, 2026
Photo Source: Takashi Miyazaki/Nikkei
NTT has launched a $500 million IOWN AI Fund to invest in optical networking, silicon photonics, AI semiconductors, and related technologies for next-generation AI infrastructure. The fund is being established with participation from SK Group, Chunghwa Telecom, the Development Bank of Japan, and investor Young Sohn, with Japanese companies including Sony Group, Fujitsu, and Toshiba also expected to contribute. The initiative is driven by growing demand for more energy-efficient AI data centers, with NTT aiming to advance its IOWN technology, which uses optical networks to reduce power consumption. The move comes as Nvidia and other companies increase investments in optical technologies for AI infrastructure.
Nikkei Asia:https://asia.nikkei.com/business/technology/ntt-sets-sights-on-nvidia-ai-race-with-500m-optical-network-fund
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