The Minerva Policy Reports deliver comprehensive research on the dynamic political, economic, and…
Weekly Japanese Industry and Policy News: 29 Mar - 04 Apr,2025
The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ Standardization of Ammonia Fuel Tanks: Strengthening Domestic Supply Chain for Global Leadership in Next-Generation Vessels
28 Mar, 2025
In July 2024, Japan's Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) established a task force of industry, government, and academia to focus on transforming the maritime industry. The goal is for Japan to secure the top market share in next-generation ship orders by 2030. To achieve this, the group emphasized the need for standardization of key equipment, such as pressure-type ammonia fuel tanks, and the strengthening of domestic supply chains and cost competitiveness. The task force, working with the Ministry of the Environment, has developed standards for ammonia fuel tanks, with the aim to support their widespread adoption in the industry. MLIT plans to explore further support measures to promote the implementation of these standards.
MLIT(Japanese): https://www.mlit.go.jp/report/press/content/001879754.pdf
“Initiatives for the Standardization of Ammonia Fuel Tanks”(Japanese): https://www.mlit.go.jp/report/press/content/001879755.pdf
▶ Japan’s Digital Agency Announces Guidelines on Use of Generative AI; Aims to Improve Web Services of Govt Agency Sites
29 Mar, 2025
The Digital Agency in Japan has released draft guidelines on the use of generative AI programs by central ministries and agencies. The guidelines aim to encourage AI use when risks are low, while regulating high-risk applications. Key points include appointing control administrators to assess AI risks, particularly regarding personal data and human judgment. If risks are high, entities must consult the Digital Agency, which will offer advisory support. AI providers will also need to check for bias in their programs. The guidelines, set to be adopted in May, aim to integrate AI into government processes, improving services like answering user questions on official websites.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20250329-246017/
▶ Japan Govt Eyes Record of Over ¥20 Trillion for National Resilience Plan to Strengthen Vital Infrastructure Such as Water, Sewage Systems
31 Mar, 2025
The Japanese government will allocate over ¥20 trillion to a five-year national resilience plan aimed at strengthening public utilities and disaster prevention. The plan, set to begin in fiscal 2026, will focus on reinforcing infrastructure affected by recent disasters, such as the Noto Peninsula Earthquake. Key areas include repairing water and sewage systems, enhancing earthquake resistance, and improving disaster prevention infrastructure. The plan covers 324 projects across five areas, including disaster preparedness, public-private sector cooperation, and upgrading roads, bridges, and mobile phone base stations. A final plan will be determined by June after the draft is released on Tuesday.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20250331-246166/
▶ Japan Govt to Provide Additional Aid to Rapidus
31 Mar, 2025
The Japanese government will provide an additional 802.5 billion yen in subsidies to Rapidus Corp. in fiscal 2025, supporting its plans to begin mass production of next-generation 2-nanometer semiconductors in 2027. Rapidus, founded by companies including Toyota and Sony, will operate a pilot line in Chitose, Hokkaido, starting in April. The total subsidies for the company will reach 1,722.5 billion yen. The government aims to establish a domestic supply chain for advanced chips vital for AI and autonomous driving technologies.
Jiji: https://jen.jiji.com/jc/eng?g=eco&k=2025033100302
▶ New Homes in Tokyo to Need Solar Panels from Tuesday, as City Aims to Leverage Its Cramped Landscape
1 Apr, 2025
Starting April 1, new homes and residential buildings in Tokyo will be required to have solar panels, following a revised ordinance from the metropolitan government. This move aims to significantly increase the city's solar energy capacity, from 720,000 kilowatts in 2022 to 2 million kilowatts by 2030. Other cities like Kawasaki are also implementing similar requirements. While solar power offers clean energy, disposal of panels, which have a lifespan of about 20 years, poses challenges. The Tokyo government is addressing this by supporting recycling initiatives. The national government plans to increase the percentage of new homes with solar panels nationwide from 31.4% in 2022 to 60% by 2030 and will introduce further requirements for homebuilders starting in 2027.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20250401-246282/
▶ Saudi Arabia set to join talks on Japan's next-gen fighter jet
2 Apr, 2025
Japan is working to involve Saudi Arabia in upcoming talks with the U.K. and Italy about the joint development of a next-generation fighter jet, set to enter service in 2035. Japanese Defense Minister Gen Nakatani will meet with his counterparts in Italy in May, where he plans to include a Saudi defense official. Saudi Arabia may contribute financially and purchase equipment for the project. Italy is also interested in acquiring Japan's P-1 patrol aircraft and exporting its M-346 training jet to Japan. Additionally, Japan is discussing the export of communication technology to India, which is also interested in the fighter jet program. However, Japan's Defense Ministry has concerns about the potential transfer of military secrets to adversaries like Russia.
Nikkei Asia: https://asia.nikkei.com/Politics/Defense/Saudi-Arabia-set-to-join-talks-on-Japan-s-next-gen-fighter-jet
▶ 8th Japan-EU Digital Policy Dialogue Held
2 Apr, 2025
On April 1, 2025, Japan's Ministry of Economy, Trade, and Industry, alongside the European Commission's Directorate-General for Communications Networks, Content, and Technology, held the 8th Japan-EU Digital Policy Dialogue. The meeting, co-chaired by Shibuya, Director-General for IT Strategy from Japan, and Mr. Thomas Skordas, Deputy Director-General of the EU, focused on key digital issues such as AI, semiconductors, quantum technology, online platforms, data, and cybersecurity resilience. Both sides agreed to enhance cooperation and align their efforts through the Japan-EU Digital Partnership, reaffirming their commitment to leading the future of the digital society together.
METI(Japanese): https://www.meti.go.jp/press/2025/04/20250402002/20250402002.html
▶ How Japan's LNG supply depends on carbon capture in Australia
2 Apr, 2025
The Ichthys LNG facility in Darwin, Australia, is crucial to Japan's energy security, supplying around 10% of the country’s LNG demand. Operated by Inpex, the facility produces 9.3 million tonnes of LNG annually, with 70% of it sent to Japan. To meet rising global demand for natural gas, Inpex plans to expand production, but it must address greenhouse gas emissions. A carbon-capture-and-storage (CCS) project, the Bonaparte CCS, aims to sequester 2 million tonnes of CO2 annually. The Australian government’s net-zero emissions target by 2050 has made reducing emissions a priority. The Ichthys facility is also considering the use of hydrogen to lower emissions and is planning a third production train. Inpex, a Japanese company, operates Ichthys alongside international partners like TotalEnergies and Woodside Energy. The project is vital for Inpex, contributing up to 70% of its profits, and the company is also exploring new LNG projects, including Abadi in Indonesia.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/How-Japan-s-LNG-supply-depends-on-carbon-capture-in-Australia
▶ Japan seriously concerned U.S. tariffs not in line with WTO rules
3 Apr, 2025
Japan expressed strong regret and concern over the U.S.'s decision to impose a 24% reciprocal tariff on Japanese products, urging the U.S. to rescind the measure, which Japan believes may violate global trade rules. Trade Minister Yoji Muto communicated Japan's concerns to U.S. Commerce Secretary Howard Lutnick, emphasizing that the tariffs could harm both Japanese investments in the U.S. and the U.S. economy. Japan also questioned whether the tariffs are consistent with World Trade Organization rules and the Japan-U.S. trade agreement. The Japanese government is considering various responses, including potential retaliatory measures, to protect its national interests. Prime Minister Shigeru Ishiba has instructed the ruling party's policy chief to explore necessary actions.
▶ Japan Establishes 'U.S. Tariff Response Headquarters' in Ministry of Economy to Address New Auto Tariffs, Launches Support Measures Including Special Consultation Desk and Financial Aid
3 Apr, 2025
In response to the U.S. auto tariff measures, Japan's Ministry of Economy, Trade, and Industry (METI) has established a "U.S. Tariff Response Headquarters" to evaluate the impact on domestic industries and ensure necessary support. METI will work to negotiate the exclusion of Japan from the tariffs while taking prompt domestic actions to protect industries and employment. Short-term measures include the establishment of a special consultation desk to address inquiries from businesses affected by the U.S. tariffs, especially auto parts manufacturers. Additionally, Japan will ease the requirements for safety-net loans to support businesses impacted by the tariffs and encourage financial institutions to provide assistance to small and medium-sized enterprises facing financial challenges. Japan Export-Import Insurance (NEXI) will also assist Japanese subsidiaries in North America with financing and cover losses caused by the tariffs under export insurance. These actions aim to mitigate the economic impact on Japan’s automotive industry and its supply chain.
METI(Japanese): https://www.meti.go.jp/press/2025/04/20250403001/20250403001.html
Business News
▶ Ajinomoto to invest $165m to boost production of chip materials
28 Mar, 2025
Ajinomoto plans to invest at least 25 billion yen ($166 million) by 2030 to increase production capacity for Ajinomoto Build-up Film (ABF), a key semiconductor material. This move aims to diversify its business beyond food, with ABF used in data center graphics processors and CPUs. Ajinomoto holds over 95% market share in these fields. The company has already invested 25 billion yen in expanding its facilities and plans to continue investing at the same pace. ABF accounted for 20% of its business profit in 2024, with projections for a 35% profit increase in the current year. The company expects annual sales growth of over 10% for electronics materials through 2030.
Nikkei Asia: https://asia.nikkei.com/Business/Tech/Semiconductors/Ajinomoto-to-invest-165m-to-boost-production-of-chip-materials
▶ NEC and COEDO Brewery develop the second edition of "The taste of life created by brewers and AI — Agentic AI × Craft Beer"
28 Mar, 2025
NEC Corporation and COEDO Brewery have developed a new series of four craft beers using NEC's Agentic AI to promote intergenerational communication. The beers, created with input from brewers and AI, are designed to reflect the tastes and characteristics of generations from their 20s to 50s. This collaboration is the second of its kind, following a 2020 project. The beers will be sold in Japan through supermarkets and COEDO's online store. The development process involved AI analyzing generational data to inform beer recipes, which were then refined through collaboration with brewers. NEC plans to expand Agentic AI to other industries, while COEDO Brewery aims to continue using AI in product development.
NEC: https://www.nec.com/en/press/202503/global_20250328_01.html
▶ World’s First Commercial-Use Ammonia-Fueled Tugboat Completes Three-Month Demonstration Voyage - GHG emissions reduced by up to approximately 95% -
28 Mar, 2025
The world’s first commercial-use ammonia-fueled vessel, Sakigake, successfully completed a three-month demonstration voyage in Tokyo Bay, achieving a greenhouse gas (GHG) emission reduction of up to 95%. The vessel was developed by Nippon Yusen Kabushiki Kaisha (NYK) and IHI Power Systems (IPS) as part of a Green Innovation Fund Project under Japan’s New Energy and Industrial Technology Development Organization (NEDO). The project, which began in 2021, confirmed that ammonia is a viable next-generation fuel for vessels. Moving forward, NEDO will continue supporting research and development of ammonia-fueled vessels and other next-generation fuel technologies, aiming to achieve carbon neutrality in the shipping industry. Additionally, NYK and its partners are working on an ammonia-fueled ammonia gas carrier, slated for delivery in 2026.
IHI: https://www.ihi.co.jp/en/all_news/2024/resources_energy_environment/1201335_13691.html
NEDO: https://www.nedo.go.jp/english/news/AA5en_100472.html
▶ Japan delivery king Yamato looks to India, M&A to triple overseas sales
29 Mar, 2025
Yamato Holdings, Japan's leading ground delivery provider, plans to triple its annual overseas revenue in the coming years, with a focus on India as a key growth market. The company aims to expand through mergers and acquisitions (M&A), up-front investments like warehouses, and partnerships with Indian companies. Yamato expects $1 billion in overseas sales for the current fiscal year and will focus on corporate logistics, including services for industries like autos and electronics. As India's freight market grows, Yamato will raise funds for acquisitions by selling assets and reducing shareholdings. The company is also restructuring its domestic operations due to Japan’s declining population, including reducing its collection and delivery centers. Despite challenges like labor shortages and high fuel prices, Yamato plans to renegotiate freight rates with large corporations and improve sales capabilities.
▶ Solar-powered smart wear to be trialed at Osaka Expo
29 Mar, 2025
Toyoda Gosei, a Toyota group company, will trial power-generating smart wear at the upcoming World Exposition in Osaka. The vests, fitted with ultrathin perovskite solar cells developed by EneCoat Technologies, will be tested for durability and performance. The solar cells, which generate electricity to power small devices like neck fans, are attached wirelessly with technology from Seiren Co. The product may launch in limited quantities later this year, with potential future uses including powering heating/cooling systems and health-monitoring sensors. Perovskite solar cells are cheaper and more flexible than traditional solar panels, making them suitable for diverse applications.
Mainichi: https://mainichi.jp/english/articles/20250329/p2g/00m/0na/019000c
▶ SoftBank Group eyes $1tn U.S. plan for AI robot industrial parks
29 Mar, 2025
SoftBank Group is planning to create AI-equipped industrial parks across the U.S., with potential investments reaching $1 trillion. This initiative follows a previous $500 billion AI infrastructure investment announced by CEO Masayoshi Son. The parks would feature factories with AI robots, including humanoid robots, and use technology from Nvidia and German company Agile Robots. SoftBank is considering Foxconn as a partner for manufacturing and aims to reduce human involvement in production processes. The project may be financed through equipment usage fees, bank loans, and investment funds, with Middle Eastern investors being a potential source of funding. While still in development, SoftBank's vision is to become the largest AI group globally, investing heavily in OpenAI.
Nikkei Asia: https://asia.nikkei.com/Business/Technology/Artificial-intelligence/SoftBank-Group-eyes-1tn-U.S.-plan-for-AI-robot-industrial-parks
▶ JAL pulls out of air taxi demo flights at World Expo in Osaka
29 Mar, 2025
Japan Airlines (JAL) has abandoned its plan to conduct air taxi demonstration flights at the 2025 World Expo in Osaka. The move comes after challenges in developing aircraft and securing safety certification. JAL had initially partnered with Sumitomo Corp. and Archer Aviation for the project. Despite JAL's withdrawal, three other companies, including ANA Holdings and Joby Aviation, still plan to showcase air taxi flights at the event, which runs from April 13 to October 13. The expo will feature next-generation transportation systems, including electric vertical take-off and landing aircraft.
▶ Toyota hopes better biofuels give combustion engine cars new life
31 Mar, 2025
Japanese carmakers, led by Toyota, are developing bioethanol at a research facility in Fukushima to reduce the carbon footprint of combustion engine vehicles and promote plant-based fuels. The Research Association of Biomass Innovation for Next Generation Automobile Fuels, formed in 2022, aims to produce sustainable bioethanol using nonedible plants and waste. The plant, which cost 5 billion yen, can produce 60 kiloliters of bioethanol annually. Toyota and its partners are also improving fermentation processes to make production more efficient. The initiative reflects a broader effort by automakers to enhance the environmental impact of combustion engine cars while maintaining their competitiveness in engine technology.
Nikkei Asia: https://asia.nikkei.com/Business/Automobiles/Toyota-hopes-better-biofuels-give-combustion-engine-cars-new-life
▶ Iwatani Corp. Unveils Japan’s First Hydrogen-Powered Passenger Ship; Vessel Will Sail during 2025 Osaka-Kansai Expo
31 Mar, 2025
Japan's first hydrogen-powered passenger ship, Mahoroba, will be in service for the 2025 Osaka-Kansai Expo, starting on April 13. The ship, unveiled by Iwatani Corp. on March 21, uses hydrogen fuel cells to generate electricity and emits no carbon dioxide. It will operate between central Osaka's Nakanoshima area and the Expo venue on Yumeshima Island. The hydrogen will be partly produced using electricity from Kansai Electric Power Co.'s nuclear plant. Iwatani Corp. aims to promote hydrogen as a sustainable fuel for various transportation modes during the Expo.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20250331-246241/
▶ Fujitsu and Macquarie University partner to help address critical shortage of machine learning engineers
31 Mar, 2025
Fujitsu has partnered with Macquarie University to offer a new four-week online course, "Fujitsu AutoML: Mastering Automated Machine Learning." This course will give students, researchers, and industry professionals worldwide access to Fujitsu’s AutoML technology, enabling them to rapidly develop AI models. The course will cover topics like automated machine learning, models, and algorithms, providing practical exercises and basic theory. The collaboration aims to address the demand for skilled AI professionals and bridge the gap in AI education. Fujitsu’s AutoML technology, part of its Fujitsu Kozuchi AI platform, accelerates AI implementation and enhances transparency in data-driven decision-making. This initiative highlights Fujitsu's commitment to advancing AI education and innovation.
▶ Honda launches its first electric motorbike in Vietnam
31 Mar, 2025
Honda Motor has launched its first electric motorbike, the ICON e:, in Vietnam, one of the world's largest scooter markets. Priced under 29 million dong ($1,130), the bike offers a top speed of 48 kph and is powered by a 1.5 kW lithium-ion battery. Honda, which has been a dominant player in Vietnam’s gas-fueled bike market, has not introduced an electric model until now. The ICON e: is set to compete with local and international electric motorbike brands, such as VinFast and Yamaha. With Vietnam’s motorbike market crucial for transportation, Honda aims to tap into the growing demand for cleaner, electric options amid rising concerns over pollution in cities like Hanoi.
Nikkei Asia: https://asia.nikkei.com/Business/Automobiles/Electric-vehicles/Honda-launches-its-first-electric-motorbike-in-Vietnam
▶ OpenAI to raise $40bn from SoftBank and other investors
1 Apr, 2025
OpenAI has announced it will raise $40 billion from various investors, including SoftBank, bringing its corporate value to $300 billion. SoftBank will invest $30 billion, making it the largest investor, surpassing Microsoft's total investment of nearly $14 billion. The funds will accelerate OpenAI's infrastructure investment to advance AI technology. The investment is contingent on OpenAI becoming a for-profit company. OpenAI's value has nearly doubled since October 2024, now surpassing Toyota’s market value. This growth follows the success of ChatGPT in 2022. OpenAI and SoftBank also announced plans to invest $500 billion in the Stargate project to develop AI infrastructure in the U.S. Despite operating at a loss, OpenAI continues to secure additional funding.
Nikkei Asia: https://asia.nikkei.com/Business/Technology/OpenAI-to-raise-40bn-from-SoftBank-and-other-investors
▶ Tokyo Gas to buy Texas shale stake from Chevron
1 Apr, 2025
Tokyo Gas has decided to acquire part of a shale gas development in Texas from Chevron, aiming to expand profits through trading. The deal, valued at tens of billions of yen, is expected to close in April. Tokyo Gas plans to use the extracted natural gas for market trading and supply to customers, anticipating rising demand due to its lower carbon emissions compared to coal. The company has already invested in shale gas by purchasing Rockcliff Energy in 2023 and aims to boost annual profits from its shale operations to nearly 70 billion yen by fiscal 2030. Tokyo Gas is focusing on the Haynesville formation to increase production and reduce costs, alongside its stake in ARM Energy Holdings for trading.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/Tokyo-Gas-to-buy-Texas-shale-stake-from-Chevron2
▶ Power semiconductor tech cuts energy loss 30%, Japan group says
1 Apr, 2025
Researchers in Japan, led by Makoto Takamiya from the University of Tokyo, have developed technology that can reduce electricity loss by up to 30% in power semiconductor devices. The technology involves a sensor circuit that detects voltage and automatically adjusts current, improving efficiency during the switching process. It is compatible with most power semiconductors on the market and can reduce total power loss by 6%. The innovation offers a solution to energy waste in electric vehicles and other applications. The team is collaborating with semiconductor manufacturers to commercialize the technology, which was presented at the Applied Power Electronics Conference in March.
Nikkei Asia: https://asia.nikkei.com/Business/Tech/Semiconductors/Power-semiconductor-tech-cuts-energy-loss-30-Japan-group-says
▶ ASML to quintuple advanced EUV chip tools staff in Japan
2 Apr, 2025
ASML Holdings plans to increase its Japan-based maintenance staff for its advanced EUV lithography machines from the current level to 100 by 2027, in response to the growing demand for chipmaking equipment in Japan. The company is the sole supplier of EUV machines, which are crucial for producing cutting-edge chips. As Japan ramps up semiconductor production, with companies like Rapidus and Micron Technology expanding their facilities, ASML aims to ensure quick repairs and prevent costly downtime. Other chipmaking equipment manufacturers, including Tokyo Electron and Kokusai Electric, are also expanding their workforces to support the growing industry in Japan.
Nikkei Asia: https://asia.nikkei.com/Business/Tech/Semiconductors/ASML-to-quintuple-advanced-EUV-chip-tools-staff-in-Japan
▶ With Trump tariffs in place, Toyota and Honda hold U.S. prices steady
4 Apr, 2025
Toyota and Honda will maintain current vehicle prices despite a 25% tariff on imported vehicles imposed by the Trump administration. The Japanese Automobile Manufacturers Association (JAMA) is concerned about the impact of the tariffs, particularly on vehicle and parts manufacturing in Japan. While Toyota plans to keep operations and prices stable for now, Honda is taking a "wait and see" approach. Other automakers like Mazda are still deciding how to respond. The tariff affects not just vehicles but also parts, which could hurt smaller parts suppliers. JAMA is urging the Japanese government to seek exemptions from the tariff.
Nikkei Asia: https://asia.nikkei.com/Business/Automobiles/With-Trump-tariffs-in-place-Toyota-and-Honda-hold-U.S.-prices-steady
