News On Japan

Japanese Firms Increase Focus on Automation and AI

TOKYO - Japanese manufacturers including Fanuc, Yaskawa Electric, Fujitsu, Hitachi, Kawasaki Heavy Industries and Komatsu announced new artificial intelligence initiatives on July 16 as Nvidia expanded its partnerships with Japan's robotics and industrial sectors.

Nvidia said it is working with Fanuc and Yaskawa Electric to accelerate the development of robots capable of using artificial intelligence to recognize their surroundings, make decisions and adapt their movements. Nvidia CEO Jensen Huang announced the cooperation during an event in Tokyo, saying advances in AI would make robots more intelligent, adaptable and widely accessible.

The companies are focusing on "physical AI," which applies generative AI and advanced computing to machines operating in factories, warehouses, construction sites and other real-world environments. Unlike conventional industrial robots programmed to repeat fixed movements, physical AI systems are intended to interpret images and instructions and respond to changing conditions.

Fanuc, one of the world's largest industrial robot manufacturers, plans to use Nvidia's technology in the development of more flexible factory automation. Yaskawa Electric, another major Japanese robotics company, is also participating as manufacturers seek to address labor shortages and improve production efficiency.

Fujitsu said it has begun examining the development of a collaborative control platform for physical AI with Fanuc, Yaskawa Electric and Kawasaki Heavy Industries. The planned system would coordinate different types of industrial machinery and robots while incorporating Nvidia's computing and AI technology.

The initiative could allow robots and industrial equipment made by different manufacturers to operate together through a shared control infrastructure. Such interoperability has become increasingly important as factories introduce autonomous machines from multiple suppliers.

Hitachi, NEC, Komatsu, Kubota and SoftBank Corp. were among the Japanese companies expressing plans to participate in the Nvidia Cosmos Coalition, an industry group supporting the development of open models and data for physical AI. The coalition is intended to make it easier for companies to train machines to understand physical environments and predict the results of their actions.

Komatsu is exploring the technology for construction and mining machinery, where autonomous equipment must recognize workers, vehicles, terrain and unexpected obstacles. Kubota's involvement could support the development of automated agricultural machinery as Japan's farming sector faces an aging workforce and a shortage of operators.

Kawasaki Heavy Industries is expected to apply physical AI across its robotics and industrial systems businesses. The company produces robots used in manufacturing as well as machinery for transportation, energy and infrastructure.

Nvidia also named Honda R&D, Omron, Sony Group, Mitsui & Co., Shimizu Corporation, Telexistence and robotics company Groove X among businesses developing products or services using its physical AI technology.

Honda R&D is working on intelligent mobility and robotics, while Omron is a major supplier of factory automation and sensing equipment. Sony possesses image-sensor, entertainment and AI capabilities, and trading house Mitsui could support the overseas commercialization and financing of robotics projects.

Shimizu Corporation's participation points to growing use of autonomous machinery in construction. Japan's major contractors are investing in robots and remote-controlled equipment as the industry contends with labor shortages, an aging workforce and tighter limits on working hours.

Nvidia separately introduced Cosmos 3 Edge, a platform designed to run vision, reasoning and robot-control models on its Jetson Thor computing system. It also announced new Nvidia Metropolis software libraries for developing AI systems capable of interpreting video and other visual information.

The announcements place Japan's established industrial companies at the center of Nvidia's efforts to move AI beyond data centers and software applications and into machines operating in the physical economy.

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Japan's financial markets suffered another sharp setback on October 22 as heavy selling in semiconductor and artificial intelligence-related stocks sent the Nikkei 225 down 1,713.40 points, or 2.65%, to 62,907.84, its lowest closing level since July 30.

Japan's trade deficit nearly doubled in the first half of fiscal 2026 to 2.8184 trillion yen, driven largely by surging crude oil prices following turmoil in the Middle East, while the value of oil imports from the United States increased nearly ninefold as Japan sought alternative sources of supply.

A growing wave of cyberattacks across Japan has raised concerns over the possible use of Chinese-developed artificial intelligence in hacking operations, with personal information belonging to tens of thousands of police employees potentially exposed and major companies forced to suspend online services, while cybersecurity experts warn that slow decision-making within Japanese organizations is allowing damage to spread.

Tokyo stocks rebounded on October 21, with the Nikkei 225 closing 545.82 points higher at 64,621.24, a gain of 0.85%, as stronger U.S. equities, renewed buying in technology shares and encouraging Japanese export figures helped the market recover from two consecutive sessions of losses.

Japanese banks and securities firms are moving to stop using facial photographs from driver's licenses to verify customers opening accounts online, following a series of personal information leaks that have raised concerns about fraudulent account applications.

Japan's Nikkei 225 Stock Average closed at 64,075.42 on October 20th, falling 841.28 points, or 1.30%, as renewed selling in semiconductor and artificial intelligence-related shares, rising oil prices and concerns over inflation pushed Tokyo stocks lower for a second consecutive session.

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Japan's Nikkei Stock Average closed 407.59 points lower at 64,916.70 on October 19, a decline of 0.62%, recovering from an intraday plunge of more than 1,400 points as concerns over artificial intelligence investment weighed on semiconductor and technology shares, while buying in banks, utilities and other domestic sectors helped the broader TOPIX index finish slightly higher.