Global Scans · Japan · Weekly Summary

WHAT'S NEXT?: The latest sign of weakness in Japan's economy will likely add to mounting skepticism about the prime minister's expansionary policies. His coalition government has just achieved the supermajority it needs to amend the constitution which many are worried that Japan is about to remove the mask of pacificism and convert its "Self-Defense Force" into the military threat it really is.

• [New] Japan's JHPC-quantum program, a 5-year JPY 10 billion program running through 2027, or USD 67 million at 2025 average exchange rates, is building the software foundation for quantum-HPC hybrid workflows and shows that procurement-led demand is not limited to North America. Mordor Intelligence
• [New] SoftBank and SB OAI Japan will progressively introduce optional services to further strengthen the cyber defence capabilities of enterprises based in Japan. SoftBank
• [New] To counter AI-accelerated cyber threats, SoftBank and SB OAI Japan believe that organizations need to leverage AI to implement rapid and continuous security measures. SoftBank
• [New] Germany aims to construct 10-20 new gas-fired plants by 2030, while Japan is considering new gas facilities after reversing a prior view that its power demand was in long term decline. MIT Initiative for New Manufacturing Substack
• [New] The Japanese automotive sector's medium-term outlook will depend on the success of new investment programmes targeting next-generation EV production and whether OEMs can reposition their export strategies in order to grow sales in emerging markets. atradius
• [New] We expect Japanese automotive production to contract by 3.6% in 2026 and by 2% in 2027. atradius
• [New] Japan is to open its first centralised intelligence agency since the Second World War in the face of increased security threats posed by China, Russia and North Korea. The Week
• [New] A report in the Japan Times says SB Neo will eventually supply around 10 gigawatts of AI compute capacity to U.S. customers by 2030 for scaling AI model training and inference workloads. SiliconANGLE
• [New] Japanese technology conglomerate Softbank Group Corp. and its telecommunications subsidiary SoftBank Corp. are planning to launch a new neocloud business in the U.S. that will rent access to artificial intelligence chips to hyperscalers and other businesses in need of compute resources. SiliconANGLE
• [New] Japan's Society 5.0 industrial transformation program, which integrates PKI into smart factory and connected healthcare infrastructure, represents a structured long-term demand catalyst extending well beyond 2030. Persistence Market Research
• [New] Through initiatives focused on areas such as AI, chips and space development, Japan will aim to boost gross domestic product to nearly 1,100 trillion yen by fiscal 2040. Yahoo! Finance
• [New] Japan is expected to stay important for metabolic, oncology, osteoporosis and specialist hospital medicines, with domestic companies and academic laboratories contributing significantly to discovery and formulation research. Doctor NHS
• [New] Among established uses, cooling demand in buildings is the fastest growing, with the stock of residential air conditioners set to triple by 2035. / Japan IEA
• [New] Electricity makes up almost a quarter of total final consumption today and rises rapidly to 2050 across all scenarios: over the next decade alone, demand increases by an amount equivalent to Japan's total electricity generation today. IEA
• [New] As the scope of AI investment expands, opportunities will emerge for Japanese companies. note
• [New] Tower Semiconductor will invest approximately $3 billion to expand its production capacity for silicon photonics and silicon-germanium semiconductors in Japan. note
• [New] Asia-Pacific is expected to record the fastest expansion through 2036 as manufacturing activity accelerates across China, Japan, South Korea and India, accompanied by broader adoption of industrial 3D printing technologies and increased awareness of cybersecurity risks. Mexico Business
• [New] The Japanese government, recognizing the growing threat, has initiated measures to strengthen its counterintelligence capabilities, including the formation of a National Intelligence Council and the drafting of new anti-espionage legislation. Crypto Briefing

Last updated: 25 July 2026