The Centre quarterly newsletter, March 2026 issue, is now available.
In this issue:
Main event…
JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 01 - 07 November, 2025
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Weekly Japanese Economic and Business News (01 – 07 November, 2025)
Outline
1. Economic News
▶ Nearly 40% of top Japanese companies raise profit estimates amid AI boom
1 Nov, 2025
Photo Source: Advantest
Around 100 Tokyo Stock Exchange Prime-listed companies (36% of those providing FY2025 guidance) have raised net profit forecasts for the year ending March 2026, the highest proportion in four years, driven by AI-related demand for data centers, power grids, and semiconductors.
Notable upgrades include Hitachi (+22%), Advantest (+71%), Tokyo Electron, Ibiden (+10%), Fuji Electric, and Kyocera (3.9× initial forecast). Rising orders for AI chips, testing equipment, and integrated circuit substrates are boosting profits. While optimism is strong, some analysts caution that sustained high earnings and stock prices for AI-related companies remain uncertain, with future performance depending on competitiveness in AI services.
Nikkei Asia: https://asia.nikkei.com/business/companies/nearly-40-of-top-japanese-companies-raise-profit-estimates-amid-ai-boom
▶ Govt Mulls Mandating Mobile Battery Recycling to Retrieve Rare Metals
2 Nov, 2025
Japan plans to make recycling of mobile batteries mandatory from fiscal 2026 to recover rare metals and prevent fires. The government is also considering adding portable power sources, heated tobacco products, and e-cigarette devices to the list of items required for recycling under existing laws. The move will involve collaboration between specialized recycling companies and local governments, with subsidies provided for fire-safety equipment. Manufacturers and importers will be required to collect and recycle these items under the revised regulations starting April 2026.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20251102-290380/
▶ Japan to dig into Pakistan's Reko Diq mine amid copper deficit fears
3 Nov, 2025
Source: IEA
Japan is strengthening its economic and strategic interests by committing to Pakistan’s Reko Diq copper-gold mine. JBIC plans a $300 million investment, and Komatsu will supply $440 million in machinery, while Japan leverages its influence in the Asian Development Bank. The mine, one of the world’s largest, will supply critical copper for Japan’s renewable energy, EVs, batteries, and high-tech industries, helping secure essential minerals amid global shortages and supporting Japan’s economic and industrial security.
Nikkei Asia: https://asia.nikkei.com/business/materials/japan-to-dig-into-pakistan-s-reko-diq-mine-amid-copper-deficit-fears
▶ Japan eyes 10,000 self-driving buses, taxis by fiscal 2030
4 Nov, 2025
Photo Source: Nissan Motor
Japan plans to have 10,000 Level 4 self-driving vehicles — including buses, taxis, and trucks — on the road by fiscal 2030, according to a new draft transportation plan by the Ministry of Land, Infrastructure, Transport and Tourism. Level 4 vehicles can operate without a driver under certain conditions. This will be Japan’s first numerical target for autonomous vehicles and marks a major increase from the current goal of 100 self-driving service locations by 2027. The initiative aims to address labor shortages and boost **transportation and logistics efficiency. The government also plans to support driver-assist technologies below Level 4, provide subsidies for municipalities, and develop accident analysis systems. Automakers and the government are working together to approve and expand advanced self-driving systems, using experience gained from Level 2 automation. The move is also intended to strengthen Japan’s economic security by promoting domestic autonomous vehicle technologies amid competition with China and others.
Nikkei Asia: https://asia.nikkei.com/business/automobiles/japan-eyes-10-000-self-driving-buses-taxis-by-fiscal-2030
▶ Japan PM Takaichi eyes $65bn economic stimulus package
6 Nov, 2025
Source: MOF
Japanese Prime Minister Sanae Takaichi plans to finalize an economic stimulus package by late November and pass a supplementary budget exceeding 10 trillion yen ($65 billion) to curb inflation and boost growth. The package includes subsidies for fuel, utilities, and wages, along with investments in advanced technologies like AI, semiconductors, and nuclear fusion. It also aims to revitalize shipbuilding and raise defense spending to 2% of GDP by fiscal 2025. Economists question the effectiveness of such large budgets given Japan’s stagnant potential growth rate, while funding sources remain uncertain. The government also plans to establish a “Government Efficiency Bureau” to review tax incentives and subsidies and redirect savings toward measures such as free high school education.
Nikkei Asia: https://asia.nikkei.com/politics/japan-s-new-pm/japan-pm-takaichi-eyes-65bn-economic-stimulus-package
▶ Japan to safeguard personal financial, genetic data from foreign threats
6 Nov, 2025
Photo Source: Nikkei
The Japanese government plans to strengthen protections for sensitive personal data by revising the Economic Security Promotion Act to require data centers, cloud providers, and others to enhance security against foreign threats. Prime Minister Sanae Takaichi will instruct Economic Security Minister Kimi Onoda to begin work on the changes, aiming for implementation next year. The updated law will cover highly sensitive personal data such as financial, genomic, medical, location, and biometric information, with some calls to include local government data. This move responds to growing national security concerns, including risks of leaks that could expose defense secrets or enable biological weapon development. Similar measures have been taken in the U.S. following recent large-scale data breaches.
▶ Takaichi calls for the updating of Japan's economic security law
7 Nov, 2025
Photo Source: Jiji
Prime Minister Sanae Takaichi has directed her Cabinet to review and possibly revise the Economic Security Promotion Act in response to growing geopolitical and economic challenges. She emphasized strengthening supply chains, shipbuilding capacity, and critical mineral security, as well as improving medical infrastructure protection. Takaichi also proposed creating a think tank to advance policy development and instructed Economic Security Minister Kimi Onoda to move quickly on potential amendments while consulting experts.
Yomiuri: https://www.japantimes.co.jp/business/2025/11/07/economy/takaichi-economic-security/
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2. Business News
▶ Japan’s deep-sea drilling vessel sets Guinness World Record
2 Nov, 2025
Photo Source: Chikako Kawahara/Asahi
Japan’s deep-sea drilling vessel Chikyu set a Guinness World Record by drilling to 7,906 meters, the deepest ever in scientific ocean drilling, surpassing its 2012 record. The project, conducted off Miyagi Prefecture, targeted the fault zone responsible for the 2011 Great East Japan Earthquake. JAMSTEC and Mantle Quest Japan were recognized for their advanced drilling and navigation technologies.
Asahi: https://www.asahi.com/ajw/articles/16077001
▶ Docomo, NEC to ink $200m telecom infrastructure deal with Indonesia firm
2 Nov, 2025
Photo Source: Nikkei
Orex Sai, a joint venture between NTT Docomo and NEC, will export 30 billion yen ($200 million) in telecom infrastructure to Indonesia to help build a high-speed communications network by fiscal 2026. The deal with Indonesian telecom company Surge marks Japan’s first major telecom entry into Southeast Asia, a region dominated by Huawei. Tokyo plans to support the project with loans and subsidies, aiming to boost Japanese telecom exports and reduce dependence on foreign technology. Japan is also promoting Open RAN to offer flexible, secure, and cost-effective networks. Success in Indonesia could open doors to other markets like the Philippines and Cambodia, strengthening Japan’s role in regional telecom and economic security.
▶ Sky Perfect JSAT to launch new satellites, helping to improve onboard Wi-Fi
3 Nov, 2025
Photo Source: Airbus
Sky Perfect JSAT will launch three communications satellites between 2027 and 2028 using SpaceX rockets to meet growing demand for high-speed connectivity on ships and airplanes. The 30 billion yen ($195 million) project will introduce flexible satellites that can adjust coverage and bandwidth. The company is expanding its defense and disaster-response services as its media business declines, with space operations now contributing 80% of profits. It is also investing in low-orbit satellites with Planet Labs to enhance communication stability and support Japan’s defense and security goals while deepening cooperation with U.S. partners.
▶ Submission and Public Review of the Primary Environmental Impact Consideration Document for the (Provisionally Named) Sodegaura Thermal Power Station New Units 1–3 Construction Plan
4 Nov, 2025
JERA plans to replace aging units at Sodegaura Thermal Power Station with three new high-efficiency units (New Units 1–3) to ensure long-term electricity supply and reduce CO₂ emissions. The new units will use a state-of-the-art combined cycle system with approximately 64% thermal efficiency, lowering environmental impacts from smoke and wastewater. JERA has submitted the Primary Environmental Impact Consideration Document for public review and will continue the project under the Environmental Impact Assessment Act, incorporating feedback from authorities and the local community.
JERA: https://www.jera.co.jp/en/news/information/20251104_2305
▶ MHI and ICM Form Strategic Alliance to Advance Ethanol Dehydration Efficiency
5 Nov, 2025
Photo Source: MHI
Mitsubishi Heavy Industries (MHI) and ICM, Inc. have formed a strategic alliance to improve ethanol dehydration in bioethanol production. The partnership integrates MHI’s Mitsubishi Membrane Dehydration System (MMDS™) with ICM’s process design to reduce energy use, enhance reliability, and lower carbon intensity. Pilot tests at MHI’s Nagasaki facility achieved over 99.5% ethanol purity with reduced energy consumption. The companies plan fouling and demonstration tests to validate long-term performance and full-scale operation, aiming for commercial deployment in 2026 and advancing sustainable, efficient bioethanol production globally.
MHI: https://www.mhi.com/news/25110501.html
▶ Hybrid Dump Truck Demonstration Test at South African Mining Site Selected by UNIDO's Industrial Cooperation Programme
5 Nov, 2025
Photo Source: Hitachi
Hitachi Construction Machinery and Hitachi Industrial Products will demonstrate a hybrid dump truck at a South African mining site as part of a UNIDO-backed program promoting Japanese technology transfer to the Global South. The truck combines diesel power with an electric AC drive system and regenerative braking, reducing fuel consumption and CO₂ emissions by 10% or more. The project also includes training local personnel and knowledge transfer, supports retrofitting existing trucks, and aims to advance sustainable and decarbonized mining operations.
Hitachi: https://www.hitachi.com/New/cnews/month/2025/11/251105a.pdf
▶ The SoftBank Group and OpenAI Launch "SB OAI Japan" Joint Venture
5 Nov, 2025
SoftBank Group and OpenAI have launched a joint venture, SB OAI Japan, on November 5, 2025, to provide Crystal intelligence, an enterprise AI solution designed to transform corporate management and operations in Japan. The solution integrates OpenAI’s advanced AI technologies with localized implementation and support from SB OAI Japan and is planned for rollout in 2026. SoftBank Corp. will be the first user, deploying Crystal intelligence internally to validate its effectiveness. The joint venture aims to enhance productivity and management efficiency across Japanese companies by leveraging AI deeply in business processes. Both SoftBank and OpenAI executives emphasize that this initiative marks a new era of AI-driven innovation and operational transformation.
SoftBank Corp: https://www.softbank.jp/en/corp/news/press/sbkk/2025/20251105_02/
Jiji: https://jen.jiji.com/jc/eng?g=ind&k=2025110501175
▶ NTT to Establish Company for Self-Driving Services
5 Nov, 2025
Photo Source: NTT
NTT Inc. will launch NTT Mobility Inc. in December to promote practical use of self-driving technology. The company plans to offer services such as procuring and operating autonomous vehicles for local governments and transport companies by fiscal 2027. It will consolidate NTT group’s expertise from over 35 demonstration projects and work with automakers and developers to deploy Level 4 autonomous driving, aligning with the government’s goal of 100 autonomous driving service locations nationwide by 2027.
Jiji: https://jen.jiji.com/jc/eng?g=ind&k=2025110500284
NTT: https://group.ntt/en/newsrelease/2025/11/04/251104b.html
▶ Japan bullet train operator tests facial recognition ticket gates
6 Nov, 2025
Photo Source: Kotaro Abe/Nikkei
East Japan Railway (JR East) has begun testing a facial recognition gate system that allows pre-registered passengers to pass through stations without tickets or transit cards. The trial, running until March 2026 at Nagaoka and Niigata stations, involves about 500 commuter pass holders on the Joetsu Shinkansen line. The system links facial photos to commuter data, letting recognized users pass smoothly while denying entry to unregistered individuals. JR East aims to improve station convenience and shopping activity and plans broader adoption around 2034, including at unstaffed stations. A separate contactless gate trial will start in 2027 near Tokyo’s Shinagawa Station.
Nikkei Asia: https://asia.nikkei.com/business/transportation/japan-bullet-train-operator-tests-facial-recognition-ticket-gates
▶ Nissan reports 222-billion-yen net loss, to sell headquarters
6 Nov, 2025
Photo Source: Asahi
Nissan Motor Co. posted a half-year net loss of ¥221.9 billion ($1.4 billion) due to weak car sales and U.S. tariffs, with revenue down 6.8% to ¥5.58 trillion. It now expects a ¥275 billion operating loss and 7.4% lower revenue for the fiscal year ending March 2026. To raise funds, Nissan will sell its Yokohama headquarters for ¥97 billion and lease it back for 20 years, recording a ¥73.9 billion gain. The company will also cut production for a week at two Japan plants due to chip supply issues tied to Chinese export restrictions, while continuing global restructuring and job cuts.
Asahi: https://www.asahi.com/ajw/articles/16140143
▶ Mitsubishi Electric Signs MoU with Hon Hai Precision Industry for Global Alliance in AI Data Center Solutions
6 Nov, 2025
Photo Source: Mitsubishi Electric
Mitsubishi Electric and Foxconn have signed an MoU to form a global alliance to supply energy-efficient, reliable AI data center solutions. The partnership aims to promote sustainability, support a circular economy, and address broader social issues. Both companies also plan to collaborate beyond AI data centers to develop new business models and solutions for a sustainable future.
Mitsubishi Electric: https://www.mitsubishielectric.com/en/pr/2025/pdf/1106.pdf
▶ Toyota eyes sharp drop in CO₂ footprint at Hakone Ekiden
6 Nov, 2025
Photo Source: Toyota Motor Corp.
Toyota will use its next-generation electric vehicle, the e-Palette, as a medical support car at the January Hakone Ekiden university relay race, along with other electric and fuel-cell vehicles. The switch from traditional gasoline-powered cars aims to cut CO₂ emissions by over 60% and reduce exhaust exposure for runners. Four e-Palettes will serve as medical and emergency vehicles, while 14 additional electric or fuel-cell vehicles and 22 hybrid minivans running on low-carbon fuel will support race operations. Toyota tested the e-Palette on the mountainous course to ensure performance, and a specially equipped fuel-cell truck will carry media crews to capture the event.
Asahi: https://www.asahi.com/ajw/articles/16102434
▶ Japanese firm offers wood-derived material to help reduce space debris
6 Nov, 2025
Photo Source: NASA
Kami Shoji, a Japanese paper products company, has developed Amorcell, a wood-derived cellulose nanofiber (CNF) material designed to make satellites fully burn up during atmospheric reentry, reducing space debris and environmental risks. Amorcell is stronger than some stainless steels, biodegradable, chemical-free, and produced using a proprietary process that significantly lowers costs and manufacturing time. The material is aimed at the growing small-satellite market, which is expanding rapidly but creating more orbital debris. Amorcell has attracted interest from startups like ElevationSpace, which plan to test it on the International Space Station to assess its durability in space conditions. While challenges remain in producing thicker components, Amorcell offers a sustainable, high-performance solution for safer satellite operations and debris mitigation.
Japan times: https://www.japantimes.co.jp/news/2025/11/06/japan/science-health/wooden-satellite-material/
▶ Japan's Mitsubishi Estate joins US data center race with $15bn build-up
7 Nov, 2025
Photo Source: Reuters
Mitsubishi Estate plans to build 14 data centers in the U.S. by 2030 at a total cost of around 2.3 trillion yen ($15 billion), led by its U.S. subsidiary TA Realty. The first site has been completed in Virginia, with additional projects planned in Virginia, Atlanta, and Chicago. These hyperscale facilities will cater to major tech companies like Amazon and Google, with tenants already confirmed for several sites. Together, the centers will consume about 2,800 megawatts, over twice Tokyo’s current total capacity. Mitsubishi Estate will fund 180 billion yen of the project itself and may increase its investment. After completion, facilities will be sold to investment funds, capitalizing on the global boom in AI-driven data demand. The move marks a strategic push into the U.S. market as Japan’s real estate sector faces rising costs and slowing returns.
Published: November 2025
EU-Japan Centre for Industrial Cooperation
Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.
Copyright © 2026 EU-Japan Centre