JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 03 - 09 October ,2026
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Outline
▶ Japan to develop low-cost cruise missile that overwhelms air defenses
03 Oct, 2026
Photo Source: Japan Ministry of Defense/Kyodo
Japan plans to develop a low-cost, long-range cruise missile that can be deployed in large numbers to overwhelm enemy air defenses. By using civilian components, Japan aims to significantly reduce costs and begin mass production as early as fiscal 2030. The project is part of Japan’s broader effort to strengthen its stand-off missile capabilities and defence industry.
▶ Japan's chip industry capitalizes on growth in India semiconductor industry
06 Oct, 2026
Photo Source: Kyodo
Japanese semiconductor-related companies are expanding into India as the country develops its domestic chip industry. More than 30 Japanese companies participated in SEMICON India 2026, with firms such as Fujifilm, Sumitomo Chemical and Tokyo Electron seeking partnerships in materials, equipment and workforce development. The growing Japan-India cooperation reflects India’s ambition to become a global semiconductor hub and diversify supply chains.
Mainichi:https://mainichi.jp/english/articles/20261006/p2g/00m/0na/006000c
▶ Japan may add mention of nuclear subs to key security documents
07 Oct, 2026
Photo Source: Kyodo
Japan may mention nuclear-powered submarines in its revised security documents by the end of the year, potentially opening the door to further research and debate. While some ruling coalition lawmakers support acquiring such submarines, the government has not decided to introduce them, and the issue remains legally and politically sensitive.
Mainichi:https://mainichi.jp/english/articles/20261007/p2g/00m/0na/002000c
-------------------------------------------------------------------------------------------------------------------------------------
2. Business News
▶ Once in decline, Japan's hard-drive suppliers ride soaring AI demand
03 Oct, 2026
Photo Source: Resonac
Japanese companies are expanding hard-drive component production as the AI boom drives demand for data storage. Companies such as Resonac, TDK and NHK Spring hold strong positions in key hard-drive technologies, benefiting from the industry’s recovery after years of decline due to SSDs. They are now investing heavily in overseas production and next-generation technologies to meet growing data-center storage needs.
▶ Kawasaki Heavy aims for fully autonomous humanoid AI robot by 2030
04 Oct, 2026
Photo Source: Suzu Takahashi/Nikkei
Kawasaki Heavy Industries plans to launch a fully autonomous AI-powered humanoid robot, Kaleido, as early as 2030. Initially, the robot will perform simple factory and warehouse tasks, with its capabilities gradually expanding to assembly and other complex work. Kawasaki is partnering with Japanese startup Noetra on physical AI and with Nvidia to accelerate development. Japan aims to strengthen its position in humanoid robots, where it currently lags behind the U.S. and China.
▶ Panasonic to make humanoid robots, leveraging its battery business
05 Oct, 2026
Photo Source:Saya Kanauchi/Nikkei
Panasonic plans to develop humanoid robots by 2029, initially for use in factories and warehouses. The company has started R&D on AI and robotics through a new division. Although competitors in China are ahead, Panasonic aims to differentiate itself by developing safer robots, particularly by leveraging its battery safety technology.
▶ Japan's Rapidus to help 17 companies design chips for clients
05 Oct, 2026
Photo Source: Shintaro Ino/NIkkei
Rapidus will partner with 17 semiconductor design companies to help customers create their own advanced chips. The goal is to expand its customer base and increase orders by supporting everything from chip design to production. With ¥3 trillion in government support, Rapidus aims to mass-produce 2-nanometer chips by the second half of fiscal 2027. The partnerships include Japanese companies such as Toshiba-related firms, as well as global players like Synopsys, Cadence, and Infosys.
▶ Sumitomo Corporation to Participate in Large-Scale Renewable Energy Project in India in Partnership with Hero Group
05 Oct, 2026
Photo Source: Sumitomo
Sumitomo Corporation will acquire a 49% stake in a large-scale renewable energy project in India combining about 500 MW of solar and wind power with 200 MWh of battery storage. The Karnataka project aims to provide stable 24/7 renewable electricity under a 25-year agreement with an Indian state-owned power company. Sumitomo plans to use the project’s energy-management expertise to expand renewable energy and storage businesses across Asia.
Sumitomo: https://www.sumitomocorp.com/en/jp/news/release/2026/group/21710
▶ Suzuki's mini EV bet exposes Japan's battery vulnerability to China
06 Oct, 2026
Photo Source: Hazumu Urushiyama/Nikkei
Suzuki has launched its cheapest-ever Japanese EV, the e-Sky, to compete with Chinese rivals such as BYD in Japan’s popular kei-car market. However, the vehicle relies on a battery supplied by a BYD affiliate, highlighting Japan’s dependence on Chinese battery technology and cost advantages. Suzuki is also considering exporting the kei EV to Europe, where interest in smaller EVs is growing.
Nikkei Asia: https://asia.nikkei.com/business/automobiles/suzuki-s-mini-ev-bet-exposes-japan-s-battery-vulnerability-to-china
▶ Toyota partners with Isuzu to launch updated hydrogen fuel cell bus
06 Oct, 2026
Photo Source: Kosuke Okamoto
Toyota and Isuzu will launch new hydrogen fuel-cell buses with a range of more than 300 km, around 100 km farther than Toyota’s previous Sora model. The buses combine Isuzu’s vehicle platform with Toyota’s fuel-cell technology and feature improved battery capacity, accessibility, and safety systems. Isuzu will also begin selling its first fuel-cell bus, the Erga FCV, expanding Japan’s hydrogen-powered public transport options.
▶ Fusion-Power Startup Unveils Small Reactor Under Construction
07 Oct, 2026
Photo Source: Yomiuri
Japanese startup Helical Fusion is developing a small-scale test device for its planned fusion reactor, using double-helix coils to generate magnetic fields and confine plasma at around 100 million°C. The company plans to conduct magnetic-field tests in 2027 and complete the test device around 2030, with the results feeding into a demonstration fusion reactor planned for the 2030s.
Yomiuri:https://japannews.yomiuri.co.jp/business/companies/20261007-352445/
▶ Towa plans chipmaking tool plant for Japanese supply chain: CEO
07 Oct, 2026
Photo Source:Atsushi Ooka/Nikkei
Towa will invest ¥5 billion ($31.6 million) to build a new plant in Kyoto for advanced semiconductor molding equipment, with operations expected to begin as early as 2029. The company, which holds about 60% of the global market for this equipment, currently assembles the products mainly in China, Malaysia, and South Korea. The new plant will strengthen domestic production capabilities, support technological development, and help address economic security concerns and rising overseas costs.
▶ Kawasaki Heavy unveils dog-shaped robot companion for older people
07 Oct, 2026
Photo Source: JIJI
Kawasaki Heavy Industries has unveiled Home Leo, a dog-shaped AI robot designed to support elderly people living at home. The robot can provide companionship, monitor users’ well-being, assist with daily tasks and alert family members or care professionals to potential problems. Kawasaki aims to launch Home Leo in fiscal 2028 and develop it in cooperation with healthcare and local government organizations.
Japan times:https://www.japantimes.co.jp/business/2026/10/07/companies/kawasaki-heavy-industries-dog-robots/
Kawasaki:https://global.kawasaki.com/en/corp/newsroom/news/detail/?f=20261006_6729
▶ Japan's EV subsidies benefit Tesla more than Honda, Nissan
09 Oct, 2026
Photo Source: Risako Kojima/Nikkei
Japan is expected to use 89% of its FY2026 EV subsidy budget by September, with Tesla receiving more subsidies than Honda and Nissan. The program has boosted EV sales but also created supply disruptions and market distortions. The government is considering future subsidy levels as concerns grow over budget exhaustion and market dependency.
▶ Sumitomo Bakelite to boost chip encapsulant output in China, Singapore
09 Oct, 2026
Photo Source: Sumitomo Bakelite
Sumitomo Bakelite will invest ¥10 billion to expand semiconductor encapsulation material production in China and Singapore by fiscal 2030, targeting growing demand for AI data center chips. Despite export restrictions on chip-related technologies to China, the company aims to strengthen its local production capacity and capitalize on China's expanding semiconductor market.
▶ Japan's Mitsubishi Materials taps Vietnam for tungsten as China alternative
09 Oct, 2026
Photo Source: Mitsubishi Materials
Mitsubishi Materials is sourcing recycled tungsten from Vietnam to offset Chinese export restrictions, securing supplies at significantly higher costs. Surging tungsten prices have forced Japanese manufacturers to raise carbide tool prices, threatening their competitiveness against Chinese rivals and putting smaller manufacturers under severe financial pressure.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
