Clone of JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 12 -18 September,2026
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Outline
▶ Japan eyes next-gen fast breeder reactors as China, Russia lead
12 Sep, 2026
Photo Source: Maho Obata/Nikkei
Japan is considering developing a next-generation fast breeder reactor to reduce its dependence on imported uranium and make better use of nuclear fuel. China, Russia and India are moving ahead with the technology, while Japan is trying to revive its own program after the troubled Monju project was shut down. Japan has allocated ¥171.4 billion through fiscal 2027 for next-generation reactor development, with a decision on a 600-MW research reactor expected around 2028. Cooperation with France is also gaining importance as both countries seek to improve the safety and economics of sodium-cooled fast reactors.
Nikkei Asia:https://asia.nikkei.com/business/energy/japan-eyes-next-gen-fast-breeder-reactors-as-china-russia-lead
▶ Govt Support for Cable-Laying Ships in Japan Aims to Keep Key Infrastructure’s Head Above Water
15 Sep, 2026
Photo Source: Yomiuri
Japan plans to support the construction of submarine cable-laying ships because these cables carry 99% of international communications. Japan has only five large ships, many of which are aging, compared with about 10 each in the U.S., Britain, and France. The government will subsidize new ships to strengthen Japan’s digital infrastructure and economic security.
Yomiuri:https://japannews.yomiuri.co.jp/politics/politics-government/20260915-348701/
▶ Japan records a trade deficit for 4th month as oil imports soar
16 Sep, 2026
Photo Source: Reuters
Japan posted a ¥1.1 trillion trade deficit in August, its fourth consecutive monthly deficit, as surging oil prices drove imports sharply higher. Exports also increased, led by autos and semiconductors, but Japan’s heavy reliance on imported energy leaves the economy vulnerable to Middle East-related supply disruptions and a weaker yen. The data could add pressure on the Bank of Japan over interest rates, while the government is considering additional fiscal measures to ease the impact of higher living costs.
Asahi: https://www.asahi.com/ajw/articles/16893317
▶ Japan mulls 52,000 unmanned systems target in 5-yr defense buildup
17 Sep, 2026
Photo Source: Kyodo
Japan is considering a major expansion of its defence capabilities from fiscal 2027, including around 52,000 unmanned systems, long-range missiles, satellites and advanced air-defence technologies. The proposed five-year plan could require more than ¥9 trillion for counterstrike capabilities, while total defence spending may reach ¥70–80 trillion. The expansion reflects Japan’s response to the evolving security environment in East Asia and the need to strengthen long-term defence readiness.
Kyodo: https://english.kyodonews.net/articles/-/85361
▶ BOJ hikes rates to 1.25% as chief Ueda cites shift in policy phase
18 Sep, 2026
Photo Source: Akira Kodaka/Nikkei
The Bank of Japan raised its policy rate to 1.25%, the highest level since 1995, citing growing upside risks to inflation. Governor Kazuo Ueda said monetary policy has entered a new phase, shifting from achieving 2% inflation to keeping inflation stable around the target. The decision was split, with two of nine board members opposing the hike. The move also briefly weakened the yen, while Ueda indicated that further rate hikes remain possible depending on economic and price developments.
Nikkei Asia: https://asia.nikkei.com/economy/bank-of-japan/boj-hikes-rates-to-1.25-as-chief-ueda-cites-shift-in-policy-phase
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2. Business News
▶ Nippon Steel makes $2bn contrarian bet on Japan's automotive market
12 Sep, 2026
Photo Source: Naoki Matsuda/Nikkei
Nippon Steel is investing ¥300 billion in a new hot-rolling line at its Nagoya plant despite Japan’s shrinking auto market. The company is betting that higher-quality, high-strength steel and closer cooperation with automakers will allow it to gain market share even as overall demand declines. At the same time, Nippon Steel sees its Japanese plants as technology hubs supporting its global expansion, particularly in the U.S. and India. Its broader strategy is to strengthen its domestic business while using its technology and overseas investments to regain a leading position in the global steel industry.
▶ Fujitsu launches made-in-Japan next-generation CPU FUJITSU-MONAKA and Fujitsu MONAKA Server for sovereign AI infrastructure
14 Sep, 2026
Photo Source: Fujitsu
Fujitsu will begin global sales of its Japan-developed next-generation CPU, FUJITSU-MONAKA, in November 2026. The CPU offers twice the AI inference performance of other CPUs while using less power. Fujitsu will also launch Japan-made MONAKA servers for sovereign AI infrastructure in Japan and Europe. The servers emphasize security, supply-chain transparency, energy efficiency, and domestic data management, targeting businesses, data centers, academia, HPC, and defence.
Fujitsu: https://global.fujitsu/en-global/pr/news/2026/09/14-02
▶ TDK to ramp up production of electronic components for AI servers
14 Sep, 2026
Photo Source: TDK and Mayumi Tsumita/Nikkei
TDK plans to invest ¥40 billion in two Japanese factories over the next three years to increase production of thin-film inductors for AI servers. These components help deliver electricity to powerful GPUs more efficiently and can reduce power losses by 30–50%. TDK expects strong demand as AI servers become more powerful and energy-hungry, with mass production starting in fiscal 2026.
▶ Toyota readies hydrogen-powered Hilux truck for 2028 Europe launch
14 Sep, 2026
Photo Source: Ryo Asayama/Nikkei
Toyota plans to launch a hydrogen fuel cell version of its Hilux light commercial truck in Europe in 2028, targeting corporate and leasing fleets. The truck will offer a range of over 400 km and towing capacity of up to 2.5 tons. Toyota also unveiled a next-generation 300 kW fuel cell system for heavy-duty trucks, which will be tested by Scania and Iveco.
Nikkei Asia: https://asia.nikkei.com/business/automobiles/toyota-readies-hydrogen-powered-hilux-truck-for-2028-europe-launch
▶ Kioxia-linked cloud startup to make it easier to crunch encrypted data
15 Sep, 2026
Photo Source: Shuhei Ochiai/Nikkei
EmotionX, a Kioxia-backed startup, will launch a cloud service that can analyze encrypted data without decrypting it, using fully homomorphic encryption. The technology could help companies and governments securely share sensitive data, with potential users including defence and financial institutions. EmotionX plans a limited launch later this year and larger dedicated servers in 2027. The technology requires much more computing capacity than normal data processing, which could also increase demand for Kioxia’s memory chips.
▶ Japan's 1st driverless taxi service eyed in Tokyo in 2027
15 Sep, 2026
Photo Source: Go Inc., Waymo LLC and Nihon Kotsu
Go, Waymo, and Nihon Kotsu plan to launch Japan’s first fully driverless taxi service in Tokyo in 2027, starting with around 100 autonomous taxis. The companies have been testing Waymo’s self-driving technology on Tokyo roads since 2025, while Go will provide the ride-hailing platform and Nihon Kotsu will manage operations.
Kyodo: https://english.kyodonews.net/articles/-/85077
▶ Japan's Inpex sees strong interest in Indonesia LNG amid Hormuz closure
16 Sep, 2026
Photo Source: Inpex
Inpex is seeing strong interest in its Abadi LNG project in Indonesia as tensions in the Middle East increase concerns about the Strait of Hormuz. The project is expected to produce 9.5 million tons of LNG annually, and buyers have inquired about more than half of the planned output. Inpex plans to make a final investment decision in mid-2027. The project is attracting attention because its LNG can reach Asian markets without passing through the Strait of Hormuz, helping diversify energy supplies and improve energy security.
▶ Japan's MUFG Bank to finance defense industry in shift from cautious stance
16 Sep, 2026
Nikkei montage/Source photos by Hazumu Urushiyama
MUFG Bank plans to introduce its first companywide guidelines for financing defence-related companies, moving away from its previously cautious stance. The policy is expected to expand financing to defence contractors, SMEs, startups, and dual-use technologies such as AI, sensors, drones, and satellite components. Other Japanese banks may follow, potentially increasing private-sector funding for the defence industry. Financing for inhumane weapons and weapons exports to conflict zones will remain restricted.
▶ Nippon Steel builds on U.S. Steel takeover with new European plant in Slovakia
17 Sep, 2026
Photo Source: U.S. Steel
Nippon Steel will invest approximately €900 million ($1.04 billion) in a new 1.6 million-ton-per-year electric arc furnace (EAF) and an air separation unit (ASU) at its Košice steelworks in Slovakia. The project, supported by up to €350 million in grants from the EU Modernization Fund through the Slovak government, is expected to begin EAF operations in 2030, with the ASU scheduled to start in 2029.The investment will help Nippon Steel reduce CO₂ emissions and expand its supply of low-carbon steel for the European automotive market, while strengthening the competitiveness of its Slovak operations. Following the completion of its acquisition of U.S. Steel, the Slovak operation will become Nippon Steel Slovakia on October 1, 2026, and serve as Nippon Steel’s core operating hub in Europe. The investment is part of Nippon Steel’s broader strategy to expand overseas production capacity and strengthen its global production network.
Nippon Steel:https://www.nipponsteel.com/en/newsroom/news/2026/20260916_100.html
▶ Nissan to invest $228m in Sunderland UK plant to make Kicks hybrid SUV
17 Sep, 2026
Photo Source: Nissan Motor
Nissan will invest £170 million ($228 million) to produce its new Kicks hybrid SUV at its Sunderland plant in the UK, with vehicles exported across Europe. The investment will add a new model and help maintain employment at the plant. The move is also significant because the EU is considering restricting EV and hybrid subsidies to vehicles assembled within the EU. Nissan is arguing that the UK should not be excluded because of the integrated UK-EU automotive supply chain.
▶ Mitsubishi Heavy to boost Preferred Networks AI tie-up with investment
17 Sep, 2026
Photo Source: Nikkei
Mitsubishi Heavy Industries will invest ¥10 billion in AI startup Preferred Networks through a third-party share allotment and form a capital and business alliance. The two companies will jointly develop domestic AI technologies for defence equipment and security systems, including destroyers, fighter jets and missiles. The partnership aims to strengthen Japan’s domestic AI capabilities for national security, with a focus on research and development.
▶ Toyota, 7 European Partners Team Up to Accelerate Fuel-Cell Truck Rollout
17 Sep, 2026
Photo Source: Yomiuri
Toyota plans to strengthen cooperation with seven European automakers and energy companies to accelerate the deployment of hydrogen fuel-cell trucks in Europe. The partnership will focus on expanding hydrogen supply and refueling infrastructure and reducing fuel costs to diesel-competitive levels. The initiative aligns with EU efforts to expand renewable hydrogen use and hydrogen refueling networks across Europe.
Yomiuri:https://japannews.yomiuri.co.jp/business/companies/20260917-348985/
▶Toyota to deploy 400,000 humanoid robots to work alongside factory staff
18 Sep, 2026
Photo Source: Ryo Asayama/Nikkei
Toyota plans to introduce 400,000 in-house-developed ELEY humanoid robots at production sites worldwide as part of its factory modernization efforts. From 2028, Toyota and its group companies will invest ¥1 trillion annually to renovate and rebuild factories, including deploying robots across both Toyota and group-company plants. ELEY can learn production tasks from human workers, such as handling parts and folding cloth, and Toyota plans to share this knowledge across factories worldwide. The company aims to create factories where humans and robots work together, with robots supporting workers and helping train new employees rather than replacing them.
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