The Centre quarterly newsletter, December 2024 issue, is out!
In this issue:
Call for…
The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ Japan to support telemedicine in Palau with high-speed network
15 Dec, 2024
Japan will support Palau in improving remote medical care by helping build a high-speed telecommunication network for healthcare providers. The Japanese Ministry of Internal Affairs and Communications will fund a test project connecting Palau's main hospital to remote islands, enabling doctors to consult with patients. Additionally, Japan may partner with the WHO to train Palauan healthcare professionals. This initiative is part of a broader effort under the Quad security dialogue to enhance communications infrastructure in the Pacific, as China expands its influence in the region.
▶ Japan machine tool makers focus on EVs under shadow of Trump
16 Dec, 2024
Japan's machine tool industry is adapting to the auto sector's shift to electric vehicles (EVs). At the Japan International Machine Tool Fair, Yamazaki Mazak displayed an EV platform and a machining center for gigacasting, a process used for large, lightweight parts. While EVs require fewer parts, new demands for aluminum and battery components are emerging. Japanese companies, known for their technical expertise, are optimistic about the EV market, especially for plug-in hybrids. However, uncertainty around U.S. environmental policies may impact growth.
Nikkei Asia: https://asia.nikkei.com/Business/Technology/Japan-machine-tool-makers-focus-on-EVs-under-shadow-of-Trump
▶ Emergency teams to be equipped with unmanned water-cannon robots
16 Dec, 2024
The Fire and Disaster Management Agency plans to deploy unmanned water-cannon robots to enhance disaster response and firefighter safety. Inspired by lessons from the January 1 Noto Peninsula earthquake, these robots will be used in hazardous situations, remotely operated to suppress fires and prevent spread during earthquakes or tsunami warnings. Initially, three fire departments will receive the robots. The agency will also introduce small rescue vehicles for damaged roads and high-performance air-conditioned tents for responders. This initiative is part of Japan’s effort to improve emergency fire assistance teams, with 6,600 units currently registered nationwide.
Japan Times: https://www.japantimes.co.jp/news/2024/12/16/japan/japan-disaster-robots/
▶ Japan enacts 13.9tn yen extra budget for economic package
17 Dec, 2024
Japan's parliament approved a 13.9 trillion yen ($90 billion) supplementary budget for economic relief, including inflation support, energy subsidies, and disaster reconstruction. The government will finance half through new bonds, raising concerns about fiscal health. The ruling coalition gained support from opposition parties, agreeing to raise the tax-free income threshold for part-time workers and increase disaster relief.
Nikkei Asia: https://asia.nikkei.com/Politics/Japan-enacts-13.9tn-yen-extra-budget-for-economic-package
▶ Japan Vows to Use as Much Renewable, Nuclear Energy as Possible
17 Dec, 2024
Yomiuri: https://japannews.yomiuri.co.jp/business/economy/20241217-228365/
▶ Japanese startup Space One fails to launch rocket for 2nd time
18 Dec, 2024
Japanese startup Space One Co. experienced a second rocket failure during a launch attempt on Wednesday, thwarting its goal of becoming the first private company in Japan to launch a satellite into orbit. The Kairos No. 2 rocket, carrying five satellites, was aborted midflight after strong winds delayed the launch twice. Space One's first attempt in March also failed when the rocket exploded shortly after liftoff. Established in 2018, Space One aims to commercialize space delivery services by offering cost-effective, frequent launches and targeting 30 launches annually by the 2030s.
▶ Japan's draft climate strategy spurs calls for bolder cuts in carbon emissions
18 Dec, 2024
Japan's draft proposal for a carbon emission reduction target aims for a 60% cut by 2035 from 2013 levels. This target has been met with calls for deeper cuts from experts and within Japan's ruling coalition. Climate activists argue the proposal is insufficient, as it falls short of the 66% reduction needed to meet the UN's goal of limiting global warming to 1.5°C. Komeito, the junior coalition partner, has pushed for a 66% target. Japan plans to finalize the target by the end of the year. Additionally, the industry ministry proposed a revised energy policy to increase renewable energy in the electricity mix to 50% by 2040, though critics say it lacks a plan for phasing out coal.
Japan Times: https://www.japantimes.co.jp/environment/2024/12/18/energy/climate-stategy-bolder-cuts-urged/
Business News
▶ SoftBank Opens Interactive Facility "EBC STATION Ai" at Japan's Largest Open Innovation Hub "STATION Ai"
13 Dec, 2024
SoftBank, through its subsidiary STATION Ai, will open an interactive facility called "EBC STATION Ai" at Japan's largest open innovation hub, STATION Ai in Nagoya, Aichi Prefecture, in January 2025. The facility will showcase over 50 cutting-edge solutions, including AI, smart buildings, the metaverse, and innovative technologies from startups and local manufacturers. "EBC STATION Ai" aims to accelerate digital transformation (DX) by offering tailored demonstrations and discussions to help businesses solve challenges and create new value. It will also foster collaboration between visitors and startups to drive business growth and open innovation in the Tokai region.
Softbank (Japanese): https://www.softbank.jp/corp/news/press/sbkk/2024/20241213_01/
▶Nippon Steel's Green Steel First Adopted by Hitachi Ltd.
13 Dec, 2024
On the 12th, Nippon Steel announced that its green steel "NS Carbo-Rex Neutral," produced using the mass balance method, has been adopted by Hitachi Ltd. for the first time. The non-oriented electrical steel (NO) used in motors for electric machinery, manufactured by Hitachi Industrial Products, will incorporate this green steel. The quantity of adoption has not been disclosed.
Japan Metal Bulletin (Japanese): https://www.japanmetal.com/news-t20241213139604.html
▶ Sojitz Enters the Electricity Retail Business in Ireland
13 Dec, 2024
Sojitz Corporation has signed an agreement to acquire a 98% stake in the Irish green electricity retailer Pinergy, with the deal expected to close by January 2025. This marks Sojitz’s second investment in European electricity retail, following its acquisition of Nexus Energia in Spain in 2021. Pinergy, known for its 100% renewable energy sourcing, primarily from onshore wind, serves corporate clients and focuses on energy management services. Sojitz aims to integrate its renewable energy expertise into the retail sector, developing a one-stop energy service model in Ireland and Spain. The company plans to expand its energy solutions business in Europe, contributing to decarbonization and the transition to a net-zero society.
Sojitz: https://www.sojitz.com/en/news/article/20241213_01.html
▶ TSMC's first Japan fab on track for mass production by year-end
14 Dec, 2024
Taiwan Semiconductor Manufacturing Co. (TSMC) is set to begin mass production at its first Japanese plant in Kumamoto by the end of the year, producing semiconductors for Sony and Denso. The plant will initially focus on logic semiconductors, with plans for a second facility in 2027. The combined capacity of the two plants will exceed 100,000 wafers per month. The Japanese government is supporting TSMC with up to 1.2 trillion yen ($7.8 billion) in subsidies. JASM, the local unit, aims to achieve 60% local procurement by 2030 and is hiring over 3,400 employees.
Nikkei Asia: https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-s-first-Japan-fab-on-track-for-mass-production-by-year-end
▶ SoftBank plans to invest $100 billion in US projects over the next four years
17 Dec, 2024
President-elect Donald Trump and SoftBank CEO Masayoshi Son announced plans for SoftBank to invest $100 billion in U.S. projects over the next four years, focusing on artificial intelligence. This investment is double a previous pledge made by Son in 2016. Trump highlighted the investment as a sign of confidence in America's future. Despite some past investment setbacks, such as with Foxconn and WeWork, the announcement is seen as a positive development for Trump's efforts to promote U.S. economic growth. SoftBank's portfolio includes major companies like Alibaba and Nvidia. Trump also proposed expedited approvals for any U.S. investments over $1 billion.
Asahi: https://www.asahi.com/ajw/articles/15552951
▶ Integrated Management of Multiple Types and Units of Service Robots
17 Dec, 2024
Mitsubishi Electric Building Solutions has developed new features for its "Ville-feuille®" smart city and building IoT platform, including "Robot Control" and "Integrated Robot Monitoring" services. These features aim to improve the safe and efficient operation of multiple robots within buildings. The "Robot Control" function prevents collisions and congestion by directing robot movement in narrow spaces, while "Integrated Robot Monitoring" allows building managers to easily track the status and location of multiple robots. These services will be launched on December 20, 2024, contributing to workforce reduction and efficient robot management in buildings.
Mitsubishi Electric (Japanese): https://www.meltec.co.jp/press/241217.html
▶ Honda takes on Toyota with new hybrid, aiming to double sales
18 Dec, 2024
Honda aims to double its global hybrid vehicle sales to 1.3 million by 2030, excluding China, as part of its strategy to bridge the slow transition to electric cars. The company plans to release a new hybrid model in 2026 with improved fuel efficiency, acceleration, and enhanced features. Honda also intends to reduce hybrid production costs by half compared to 2018. While focusing on hybrid technology, Honda is continuing its electric and fuel cell vehicle plans, with a $65 billion investment. The growing demand for fuel-efficient hybrids, supported by government policies, is driving this shift, especially as EV adoption faces challenges in markets like the U.S.
Nikkei Asia: https://asia.nikkei.com/Business/Automobiles/Honda-takes-on-Toyota-with-new-hybrid-aiming-to-double-sales
▶ Japan chipmaker Kioxia stock rises 16.9% on first day of trading
18 Dec, 2024
Shares in Japanese chipmaker Kioxia Holdings rose 16.9% in its debut on the Tokyo Stock Exchange, closing at 1,689 yen. Kioxia, a leader in NAND flash memory technology, is vital for data storage in devices like smartphones and laptops, and its products are key to AI data processing. The IPO marks a new chapter after Kioxia was spun off from Toshiba in 2018. The company plans to invest 729 billion yen in advanced NAND memory production. Despite a slump in the memory market, Kioxia aims to strengthen its position, focusing on next-gen products with higher capacity and faster data transfer.
Nikkei Asia: https://asia.nikkei.com/Business/Markets/IPO/Japan-chipmaker-Kioxia-stock-rises-16.9-on-first-day-of-trading
▶ Google's Waymo to test-drive robotaxis in Tokyo early next year
18 Dec, 2024
Waymo plans to test its autonomous taxi service in Tokyo in early 2025, partnering with GO and Nihon Kotsu. The tests will use 25 electric vehicles in seven central Tokyo wards to address Japan's cabdriver shortage. The service will use Level 4 autonomy, requiring minimal human intervention. This will be Waymo’s first international test, with the company aiming to expand globally.
Nikkei Asia: https://shorturl.at/H8nRB
▶ Honda, Nissan in merger talks to form world's 3rd-biggest auto group
19 Dec, 2024
Honda and Nissan have begun talks on a potential merger to create the world’s third-largest automaker group by volume, aiming to compete with Tesla and Chinese EV makers. The two companies are considering forming a holding company, with the possibility of Mitsubishi Motors joining the alliance. This move comes amid growing competition in the electric vehicle market and speculation about Foxconn’s buyout offer for Nissan. Honda and Nissan are facing declining sales in China, and both companies are looking to improve competitiveness and reduce development costs. No final decisions have been made yet, but an announcement may come soon.
Mainichi: https://mainichi.jp/english/articles/20241218/p2g/00m/0bu/003000c
▶ Rapidus becomes 1st Japan chipmaker to receive ASML's whale-sized EUV machine
19 Dec, 2024
Rapidus has made history as Japan’s first semiconductor company to receive extreme ultraviolet (EUV) lithography equipment from ASML. The system is being installed at its facility in Chitose, Hokkaido, and will be operational by the end of the month. In partnership with IBM, Rapidus plans to develop 2-nanometer chips by 2025 and begin mass production in 2027. This move is part of Japan’s effort to revive its semiconductor industry, with a goal to increase chip sales to 15 trillion yen by 2030.
▶ Japan's JFE Engineering to run roads in India with local builder
20 Dec, 2024
JFE Engineering, expanding beyond Japan's saturated market, is entering India's road management sector through a joint venture with DP Jain & Co. Infrastructure. This collaboration, supported by a Japanese public-private infrastructure fund, will focus on road construction, maintenance, and repair, leveraging JFE's expertise in bridge inspection. The companies aim to use digital technology for cost reduction and pursue mid-sized road projects worth hundreds of millions of dollars. JFE’s move into India comes as competition intensifies in Japan, driving companies to lower bid prices.
Nikkei Asia: https://asia.nikkei.com/Business/Companies/Japan-s-JFE-Engineering-to-run-roads-in-India-with-local-builder
▶ Mitsui E&S to build cranes in Vietnam, eyeing China decoupling demand
20 Dec, 2024
Mitsui E&S, a Japanese engineering company, will begin manufacturing cranes in Vietnam to meet growing demand as U.S.-China tensions drive companies to shift supply chains to Southeast Asia. Partnering with a local steel structure company, Mitsui aims to produce about 30 cranes annually within 2-3 years. The demand for port cranes is rising as trade volumes increase in Southeast Asia. Mitsui has already received significant orders from Malaysia and Vietnam. The shift away from Chinese-made cranes, fueled by U.S. concerns over cybersecurity, is expected to benefit Mitsui E&S as it explores local production in the U.S. through its subsidiary Paceco.
Nikkei Asia: https://asia.nikkei.com/Business/Companies/Mitsui-E-S-to-build-cranes-in-Vietnam-eyeing-China-decoupling-demand
▶ Japan's Nippon Steel, Sojitz to own 49% of Canadian iron ore mine
20 Dec, 2024
Nippon Steel and Sojitz will jointly purchase a combined 49% stake in the Kamistiatusset Iron Ore Project in Canada, partnering with Champion Iron. Nippon Steel will own 30%, while Sojitz will hold 19%. The joint venture, set to be established by June, aims to develop high-quality iron ore, essential for producing reduced iron with hydrogen to reduce carbon emissions. The project, located in Newfoundland and Labrador, is expected to begin producing iron ore by the end of the decade. Nippon Steel has invested in mining projects recently to secure raw materials for its steel production and reduce its carbon footprint.
Nikkei Asia: https://asia.nikkei.com/Business/Business-deals/Japan-s-Nippon-Steel-Sojitz-to-own-49-of-Canadian-iron-ore-mine
The EU-Japan Centre currently produces 5 newsletters :
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.
The EU-Japan Centre’s activities are subject to the allocation of a Grant Agreement by the European Commission for 2024-2026
