Japan’s Semiconductor Gas Shuts Down, China Holds the Keys

Japan’s semiconductor gas production has collapsed to zero after China halted exports of high-purity tungsten powder, cutting off supplies of tungsten hexafluoride — a critical material for advanced chipmaking. This leaves TSMC, SK Hynix, and Samsung highly exposed, with Japanese suppliers Kanto Denka and Central Glass announcing permanent shutdowns from July 1, 2026.

Tungsten-based gases in the semiconductor industry are special chemical gases made from tungsten that help build the tiny wiring inside advanced computer chips. For a common man, think of them as the “glue” or “filler” that connects microscopic parts of a chip together so your phone, laptop, or AI server can run faster and more reliably.

In short, tungsten-based gases are invisible but vital building blocks of modern electronics. Without them, chips can’t be made at the cutting-edge scale we rely on today.

What Happened

• China’s Export Ban: Beijing tightened export rules on high-purity tungsten powder, halting shipments to Japan.
• Immediate Impact: Japanese producers Kanto Denka and Central Glass cannot source raw tungsten, forcing them to cease tungsten hexafluoride production.
• Production Collapse: Japan’s output of this gas has dropped to zero.

Why Tungsten Hexafluoride Matters

• Essential Role: Used to fill nano-scale vias in advanced chips (7nm and below).
• Applications: 3D NAND, HBM, and advanced logic chips requiring precise interconnects.
• Cost Structure: 60–70% of production cost comes from tungsten powder.

Global Impact

• TSMC, Samsung, SK Hynix: All rely on Japanese suppliers for tungsten hexafluoride.
• Supply Chain Shock: With Japan out, China becomes the only large-scale producer, gaining pricing power.
• Price Surge: Chinese manufacturers’ stock prices are already rising, signaling higher costs for offshore buyers.
• Alternative Materials: Samsung has begun using molybdenum in SSD NAND; SK Hynix plans to adopt molybdenum for its 375-layer NAND.

Strategic & Economic Risks

Factor	Impact
Japan’s collapse	No domestic tungsten hexafluoride production
China’s leverage	Sole supplier, controls pricing
Memory makers	NAND & HBM supply chains disrupted
Chip costs	Rising due to scarcity
Alternatives	Molybdenum adoption underway but not yet scalable

Risks & Challenges

• Supply Chain Fragility: Overdependence on China for critical raw materials.
• Cost Inflation: Higher semiconductor prices could ripple into smartphones, AI servers, and consumer electronics.
• Transition Risks: Switching to molybdenum may cause delays in production ramp-up.
• Geopolitical Exposure: Japan’s semiconductor ecosystem weakened, while China consolidates control.

What’s Next

• Short-term shortages: Expected in NAND and HBM memory.
• China’s dominance: Will likely push global buyers to diversify supply chains.
• Material innovation: Molybdenum and cobalt adoption may accelerate to reduce reliance on tungsten.

India's Position

India is not directly hit by Japan’s collapse since it wasn’t a tungsten gas producer. However, as India builds fabs and packaging units, import costs will rise, making local material innovation critical. ISM 2.0’s emphasis on domestic material production could help India reduce dependence on China in the medium term.

India is positioning itself as a semiconductor hub but remains vulnerable in the tungsten supply chain. While Japan’s collapse in tungsten hexafluoride production exposes global chipmakers, India is not yet a producer of this critical gas. Instead, India is focusing on building fabs, packaging units, and alternative material ecosystems under the ₹76,000 crore India Semiconductor Mission.

AGC Launches AAPI Innovation Hub at IIT Hyderabad to Drive India–Japan Digital Transformation and Talent Collaboration

• AGC Asia Pacific India inaugurates AAPI Innovation Hub at IIT Hyderabad Technology Research Park.
• Collaboration to focus on Digital Transformation (DX), Artificial Intelligence, internships, and joint research initiatives.
• Initiative strengthens India–Japan innovation partnership and global industry–academia collaboration.

AGC Asia Pacific India Pvt. Ltd. (AAPI), a group company of Japan-based AGC Inc., inaugurated its AAPI Innovation Hub at the Indian Institute of Technology Hyderabad (IITH) Technology Research Park (TRP) on Thursday, marking a significant step toward strengthening India–Japan collaboration in digital technologies, innovation, and talent development.

The inauguration ceremony, held at the TRP, IIT Hyderabad, was attended by senior representatives from AGC Inc., AGC Asia Pacific India, IIT Hyderabad, researchers, faculty members, and industry leaders. Key dignitaries included Prof. B S Murty, Director, IIT Hyderabad; Mr. Kenichi Takemura, Representative Managing Director, AGC Asia Pacific India Pvt. Ltd.; and Mr. Iwakura, General Manager, Digital & Innovation Management Division, AGC Inc.

The newly established AAPI Innovation Hub aims to promote industry–academia collaboration and support the development of Digital Transformation (DX) talent by creating opportunities for internships, collaborative research, and innovation-driven engagements between AGC and IITH students and researchers.

AGC has identified India as a strategic region for advancing Digital Transformation (DX) due to its strong ecosystem of highly skilled Engineering and digital talent. Through the Innovation Hub, AGC plans to work closely with IITH in areas including Artificial Intelligence (AI), digital technologies, advanced engineering solutions, and practical industry-oriented research initiatives.

The collaboration builds upon the existing relationship between AGC Asia Pacific India and IITH, particularly in internship programs and AI-related joint research initiatives. The establishment of the Innovation Hub is expected to further strengthen long-term strategic collaboration and contribute toward global innovation projects involving AGC teams across Japan, Europe, and other international locations.

Speaking on the occasion, Prof. B S Murty, Director, IITH, said: “The establishment of the AAPI Innovation Hub at IITH reflects the growing importance of global industry–academia partnerships in driving future technologies and innovation. IITH has consistently focused on translational research, digital technologies, and interdisciplinary innovation, and this collaboration with AGC will create meaningful opportunities for our students, researchers, and faculty to work on real-world global challenges as innovations, research & collaborations in addition to academia are inextricable objectives of our Institute whose purpose is to make indelible impact towards the better Society which is underway. We are happy to strengthen this India–Japan partnership through innovation, research, and talent development.”

Mr. Iwakura, GM of Digital & Innovation Management Div. at AGC, shares during the ceremony, “Starting from a single sheet of flat glass, AGC's materials have continually transformed to meet the needs of each era. To continue creating future materials, the wisdom and talent of IIT Hyderabad's professors and students are essential. AAPI Innovation Hub as a place of co-creation: The Hub is described not merely as a physical room, but as a space where the bright minds of IIT Hyderabad and AGC engineers will collaborate daily—sharing ideas and building prototypes together.”

The AAPI Innovation Hub forms part of AGC Group’s broader global Digital Transformation (DX) strategy under its mid-term management vision, AGC plus-2026, which focuses on integrating digital technologies with manufacturing expertise and fostering globally connected innovation ecosystems.

The initiative further reinforces IIT Hyderabad’s growing position as a hub for international R&D partnerships, deep-tech innovation, and industry-driven research collaborations. With its strong ecosystem of Startups, advanced research centers, and interdisciplinary programs, IITH continues to attract global companies seeking collaborative innovation and talent engagement opportunities in India.

About AGC Group:

AGC Inc., headquartered in Tokyo, Japan, is a global leader in glass, chemicals, ceramics, electronics, and advanced high-tech materials. With operations in nearly 30 countries and a workforce of around 56,000 employees worldwide, the AGC Group is recognized for its century-long legacy of technological innovation and advanced manufacturing solutions.

IITH, established in 2008, has reached a respectable position in academics, research, technology development, and Start-ups in a short span of 17+ years. In the National Institutional Ranking Framework (NIRF-2025), IITH is ranked 7th among Engineering institutes (crossing a first-generation IIT this year), and is ranked 6th in Innovation, while it has maintained its rank within the top 10 Engineering Institutes ever since NIRF was launched. IITH is ranked 664th and 270th in the QS World and Asian University Rankings 2026, respectively (among the top 10% of global institutions in citations per faculty). IITH has recorded a major leap in the QS World University Rankings 2026 by Subject, entering the global Top 400 in Engineering & Technology with a rank of 395, marking a sharp improvement from the 501–550 band in 2025. IITH secured 46 positions by 31 faculties in the Stanford /Elsevier Global Top 2% Scientists list 2025 across two categories. IITH has been striving for excellence with a motto of "Inventing & Innovating in Technology for Humanity (IITH)".

With 340+ full-time Faculty, 360+ non-teaching Staff and 5,720+ Students (PG+PhD students accounting for about 60%), IITH has a strong research focus with 5550+ R&D Projects worth of Rs. 1780 Cr (Rs. 245+ Cr funding in 2025-26), 13,580+ Publications, 2,71,100+ Citations, 161 h-index, 745 Patents (250 Patents in 2025, i.e., 0.75 patents per faculty in 2025, making it possibly the best Indian institute in terms of patents filed per faculty in a year), and about 290 Start-ups (that have generated 1100+ jobs with a revenue of Rs. 1500+ Cr).

The thrust areas of research at IITH are: next-generation telecommunications, autonomous navigation, robotics & intelligent systems, semiconductors & devices, additive manufacturing, advanced materials & critical minerals, materials characterisation, catalysis, healthcare, energy, sustainability, climate change, smart mobility, EV technology, quantum technologies, computational engineering, design, AR/VR, waste management, and rural development.

World’s First Fully Automated Medicine Lab: All Robots No Humans

Japan has unveiled a world-first fully automated medicine laboratory, operating entirely without human researchers. Located at the Institute of Science Tokyo’s Yushima campus, this facility is staffed exclusively by humanoid robots and autonomous machines, marking a radical shift in medical research.

The facility developed by the Institute of Science Tokyo operates with 10 robots, including the humanoid Maholo LabDroid, and no on-site human staff.

Key Highlights

• Location: Yushima campus, Institute of Science Tokyo
• Robots in operation: 10 autonomous machines, including Maholo LabDroid with dual robotic arms
• Functions: Automated cell culture, reagent transfer, temperature-controlled experiments, and repetitive lab tasks
• Expansion goal: 2,000 robots by 2040, aiming to automate the entire medical research pipeline
• No human staff: Operates 24/7 without on-site researchers

Inside the Robot-Run Lab

• Maholo LabDroid: A humanoid robot capable of performing delicate tasks such as stem cell culture and drug testing.
• Other autonomous systems: Handle repetitive lab work with precision, ensuring consistency across experiments.
• Current scale: 10 robots are already in operation.
• Future vision: Expansion to 2,000 robots by 2040, creating a fully autonomous medical research ecosystem.

Maholo LabDroid was among the earliest humanoid robots specifically built for biomedical research. It was first unveiled in 2017 by Japan’s Robotic Biology Institute (RBI), marking the debut of a humanoid laboratory robot designed to automate complex

biological experiments.  

Why It Matters

• 24/7 operation: Robots can run experiments continuously, accelerating discovery.
• Error reduction: Automation minimizes human mistakes in sensitive procedures.
• Drug development speed: Timelines for testing and discovery are compressed significantly.
• AI integration: Plans include combining robotics with AI for hypothesis generation and experimental validation.

Human vs. Robot Labs

Feature	Human-Staffed Labs	Fully Automated Robot Lab
Staffing	Scientists, technicians	10 robots (scaling to 2,000)
Operation Hours	Limited (8–12 hrs/day)	24/7 continuous
Error Risk	Human error possible	Minimized via automation
Scalability	Workforce-dependent	Expandable via robotics
Research Speed	Weeks/months	Compressed timelines

Challenges Ahead

• Ethical oversight: With no humans on site, accountability for results becomes complex.
• Technical reliability: Robots must adapt to unexpected experimental variables.
• Cost barrier: High investment may limit adoption outside elite institutions.
• Human role shift: Researchers may transition into supervisory, AI-integration, and oversight positions.

This lab represents a paradigm shift in medical research, where robots not only assist but fully replace human presence. If successful, it could redefine the future of drug discovery and biomedical innovation worldwide.

Sony–TSMC Alliance to Boost Image Sensor Tech for Automotive and Robotics

Sony Semiconductor Solutions and TSMC have announced that the two have signed a non-binding MOU to form a joint venture in Kumamoto, Japan, aimed at developing next-generation image sensors for AI-driven applications in automotive, robotics, and consumer electronics. Sony will hold majority control, while the Japanese government is expected to support phased investments.

Key Highlights of the Partnership

• Joint Venture (JV): Sony will be the majority shareholder, controlling operations at its new fab in Koshi City, Kumamoto Prefecture.
• Technology Synergy: Sony contributes sensor design expertise, while TSMC brings process technology and manufacturing excellence.
• Strategic Focus: Next-generation CMOS image sensors targeting AI-era applications such as autonomous vehicles, robotics, and advanced smartphones.
• Government Support: Investments will be phased based on market demand, with backing from the Japanese government.
• Expansion Plans: Sony will also invest in its Nagasaki plant, strengthening domestic semiconductor capacity.

Industry Context

• Market Leadership: Sony dominates the global image sensor market, supplying to major smartphone makers like Apple.
• TSMC’s Role: As the world’s largest contract chipmaker, TSMC diversifies its footprint in Japan, ensuring supply chain resilience.
• Competitive Edge: The JV creates a formidable barrier against rivals such as Samsung and OmniVision.

Emerging Applications

• Automotive: Sensors for ADAS and autonomous driving.
• Robotics: High-performance sensors enabling machine vision and physical AI integration.
• Consumer Electronics: Premium smartphones and imaging devices requiring higher-performance sensors.

Strategic & Economic Impact

Aspect	Sony	TSMC	Japan
Ownership	Majority shareholder	Minority partner	Government support
Strengths	Sensor design, market leadership	Advanced manufacturing, process nodes	Semiconductor revitalization strategy
Applications	Smartphones, automotive, robotics	Foundry services, AI workloads	Local economic growth, supply chain resilience
Investment	New fab in Kumamoto + Nagasaki expansion	Process technology integration	Estimated ¥1 trillion support for Kumamoto site

Leadership Statements

• Shinji Sashida (Sony CEO): “This JV is a significant initiative that brings together the strengths of both companies and aims to drive further advancement in technology and business within the next-generation image sensor field.”
• Dr. Kevin Zhang (TSMC SVP): “This partnership underscores our shared commitment and mutual vision of leveraging cutting-edge technologies and innovative solutions to deliver leading sensing technology and products.”

Global Significance

• Localization of semiconductor capacity in Japan to reduce supply chain risks.
• Rising demand for AI-ready sensors across industries.
• Strategic alliances between design leaders and foundry giants to accelerate innovation.

To summarizs, the Sony–TSMC JV marks a pivotal step in the evolution of image sensors, reinforcing Japan’s semiconductor ecosystem while positioning both companies at the forefront of AI-driven sensing technologies.

“Building on the trust cultivated through our long-standing collaboration with TSMC, I am delighted that we have reached an agreement to advance our partnership to a new stage,” said Shinji Sashida, President and CEO of Sony Semiconductor Solutions Corporation.“This JV is a significant initiative that brings together the strengths of both companies and aims to drive further advancement in technology and business within the next-generation image sensor field. Building on this JV, Sony intends to further strengthen its business operations with a focus on creating high added value. Rooted in the Sony Spirit that has guided us since our founding, we intend to continue to take on the challenge of creating new markets through unprecedented ideas and distinctive technologies.”

“Sony has been our long-time partner in the CMOS image sensor business. We are excited to elevate our collaboration to the next level, which represents a key step forward in driving future sensing technology in the AI era,” said TSMC Senior Vice President and Deputy Co-COO, Dr. Kevin Zhang. “This partnership underscores our shared commitment and mutual vision of leveraging cutting-edge technologies and innovative solutions to deliver leading sensing technology and products. We look forward to working closely together to achieve impactful results and create lasting value for all stakeholders.”

ideaForge inks MoU with Japan's DMP to Expand Global Footprint in Next-Gen AI Drones

ideaForge Technology Limited, India’s leading drone technology player, has signed a strategic Memorandum of Understanding (MOU) with Digital Media Professionals Inc. (DMP), a leading AI technology provider in Japan. Under this partnership, ideaForge will develop next-generation Di1-powered AI drones and enter the Japanese market with DMP's support, marking a major step forward for India's deep-tech global expansion.

As the global drone market surges from USD 54.9 billion in 2024 to USD 117.6 billion by 2030, Japan’s market is slated to grow from USD 2.0 billion in 2025 to USD 5.1 billion by 2034. To enable this growth, Edge AI is critical for drone-based autonomous solutions in defense, security, & industrial applications. The Di1 edge AI SoC from DMP has FP4-based NPU for high-performance, low-power, 4-channel camera for 360-degree vision, and strong imagery, which works in tandem with ideaForge’s rugged, secure, autonomous, and resilient field-proven VTOL drones to perform robust autonomous flight in severe environments and complex terrains. Together, ideaForge’s UAS end-to-end expertise and DMP’s Physical AI arm bring smarter and safer autonomous systems for accelerated adoption.

The partnership is focused on two key areas where ideaForge will provide the Di1 integration in its UAV platforms to enable new features, and DMP will be the Go To Market (GTM) partner for ideaForge’s drone solutions portfolio in Japan, enabling demonstrations, customer outreach, distribution, training, and after sales support.

On this occasion, Mr. Ankit Mehta, CEO and Co-founder, ideaForge Technology Ltd said, “Our vision at ideaForge is to build next-generation intelligent unmanned aircraft systems by seamlessly integrating advanced design, engineering, manufacturing capabilities, and cutting-edge AI technologies. This collaboration with DMP aligns perfectly with our broader strategy to develop high-performance, customizable AI for defense autonomy drones that efficiently address diverse global market needs from defense surveillance and border security to industrial infrastructure inspection and precision agriculture. Through this collaboration, we would be able to leverage DMP’s strong presence and understanding of the Japanese market to accelerate our global expansion initiatives and will provide smarter, more efficient, and sustainable autonomous drone systems that deliver real-time decision-making, extended endurance, and unmatched reliability in the most demanding environments.”

Tatsuo Yamamoto, Chairman, President & CEO, Digital Media Professionals Inc., added: “We are thrilled to partner with ideaForge, a global leader in mission-critical drones, to integrate our Di1 edge AI SoC into their next-generation UAV platforms. This MOU accelerates Di1’s accelerated deployment while enabling DMP to bring ideaForge’s rugged, high-endurance, and resilient drones to Japan’s defence, security, and industrial markets. We will work together to create Physical AI-powered solutions that change the way drones operate in terms of safety, accuracy, and independence.”

This collaboration is a critical milestone in the global expansion of ideaForge, leveraging Indian deep-tech innovation and Japanese AI expertise to create mission-critical defense, security, and industrial drones for the Japanese market. ideaForge already has an established presence in the United States through its joint venture, First Forge Technology, focused on manufacturing and distribution in the region. By creating a flexible framework for joint development and market entry, the two companies are poised to capitalize on high-growth opportunities while pioneering sustainable, autonomous aviation technologies that transform resilience and efficiency in operations.

Japan Invites 1,000 Indian Researchers for LOTUS 2026 with ₹25.6 Lakh Funding

Japan has officially launched the LOTUS 2026 programme, inviting 1,000 Indian Master’s students, PhD scholars, and postdoctoral researchers to pursue fully funded research opportunities at leading Japanese universities. Applications are open until June 9, 2026, with funding support of up to ₹25.6 lakh per researchers.

The LOTUS Programme is a Japan–India bilateral research fellowship that funds Indian Master’s students, PhD scholars, and postdoctoral researchers to conduct research at leading Japanese universities, with support of up to ₹25.6 lakh per researcher. It is designed to deepen scientific collaboration and provide international exposure for young Indian researchers.

Key Highlights of LOTUS 2026

• Eligibility: Indian Master’s students, PhD scholars, and postdoctoral researchers under the age of 40.
• Funding: Up to ₹25.6 lakh per researcher for living, travel, and research expenses.
• Deadline: June 9, 2026 (strict cut-off).
• Tracks Available:
  • LOTUS Basic: Short-term research stays (up to 12 months).
  • LOTUS-ASPIRE: New long-term track allowing stays up to 36 months.
• Fields: Open to all disciplines — science, technology, social sciences, interdisciplinary research.
• Host Institutions: Leading Japanese universities and research centers coordinated by JST.

Comparison of LOTUS Tracks

Track	Duration	Focus Area	Funding Coverage	Career Impact
LOTUS Basic	Up to 12 months	Short-term research projects	Living, travel, research costs	Exposure to Japanese labs & networks
LOTUS-ASPIRE	Up to 36 months	Long-term, high-impact research	Extended funding for multi-year projects	Stronger career-building, deeper collaboration

Important Considerations

• Competition will be intense: Only 1,000 slots for all of India.
• Age limit (under 40) may exclude senior researchers.
• Application process requires coordination with Japanese host institutions — early networking is crucial.
• Deadline is strict: Missing June 9, 2026 means waiting for the next cycle.

Action Steps for Indian Researchers

• Identify a Japanese host institution aligned with your research.
• Prepare a compelling proposal highlighting novelty, feasibility, and collaboration potential.
• Apply before June 9, 2026 via the official LOTUS portal (JST).
• Plan funding usage strategically — living costs in Japan can be high, so budget carefully.

New Terumo–Tata Elxsi Center to Accelerate AI-powered Medical Device Innovation

Tata Elxsi, a global leader in design and technology services, and Terumo Corporation, a leading Japan-based medical innovation company, have inaugurated the Terumo–Tata Elxsi Offshore Development Center. The new facility is dedicated to advancing cardiac and vascular solutions, strengthening engineering and innovation capabilities, and providing continuous lifecycle support across international markets.

Driving Next-Gen Medical Technologies

The center brings together multidisciplinary teams, combining Tata Elxsi’s expertise in design, engineering, verification, regulatory compliance, and localisation with cutting-edge applications of AI, GenAI, and digital technologies in software engineering. This integrated approach enables faster product development, regional adaptation, and improved cost efficiency while addressing the growing demand for patient-centric medical devices.

Enhancing Global Availability

By leveraging Tata Elxsi’s cross-functional capabilities, the collaboration aims to improve the reliability and performance of cardiovascular technologies, ensuring they meet stringent industry standards and the evolving needs of healthcare providers and patients worldwide.

Fumihisa Hirose, President of Terumo’s Cardiac & Vascular Company, emphasized the strategic importance of the center: “This new Offshore Development Center strengthens our ability to innovate faster and deliver high-quality medical technologies across global markets. Tata Elxsi’s integrated design, engineering, and regulatory expertise will help us accelerate our global product roadmap while maintaining the highest standards of safety and compliance.”

Sreevatsa Sahasranaman, Senior Vice President & Head – Healthcare & Life Sciences at Tata Elxsi, highlighted the long-term vision: "This Offshore Development Center represents a comprehensive partnership model with Terumo to bring Tata Elxsi’s multi-disciplinary expertise to drive innovation and cost efficiencies across Terumo’s cardiovascular portfolio. Enhanced by AI and GenAI-powered technologies, we are committed to helping Terumo deliver next-gen medical technologies to global and emerging markets.”

Strategic Impact

The collaboration marks a significant milestone in the healthcare technology sector, reinforcing India’s role as a hub for advanced engineering and design services while supporting Terumo’s mission to deliver innovative cardiovascular solutions worldwide.

India to Get Home‑Made Car Semiconductors by 2026

Tata Electronics has entered a strategic partnership with Japan’s ROHM Co. to assemble and test automotive-grade power semiconductors in India, with mass production expected by 2026. This move strengthens India’s semiconductor ecosystem, reduces import dependency, and supports the electric vehicle (EV) sector.

Partnership will assemble and test automotive‑grade power semiconductors at Tata’s $3.2B Assam facility, strengthening India’s EV supply chain and global chip resilience.

Key Highlights:

• Companies involved: Tata Electronics (India) and ROHM Co. (Japan).
• Focus: Automotive-grade power semiconductors (specifically N-channel 100V, 300A silicon MOSFETs in TOLL packages).
• Location: New $3.2 billion Jagiroad facility in Assam, plus Tata’s broader semiconductor ecosystem including the Dholera fab in Gujarat.
• Timeline: Mass production shipments targeted for early 2026.
• Strategic importance: Builds a domestic supply chain for EVs and automotive electronics, reducing reliance on imports.
• Global impact: Chips will serve both Indian and international markets, enhancing resilience in the global semiconductor supply chain.

Why This Matters:

• India’s Semiconductor Mission: Supports the ₹76,000 crore national initiative to build a self-reliant chip industry
• EV Growth: Power semiconductors are critical for EV batteries, charging systems, and efficient energy management
• Global Supply Chain: Partnership adds resilience amid geopolitical tensions and chip shortages
• Technology Transfer: ROHM brings advanced semiconductor expertise, while Tata provides large-scale assembly/testing capacity
• Economic Boost: $3.2B investment in Assam creates jobs, skills, and regional development

Challenges & Risks:

• Execution timeline: Semiconductor fabs are notoriously complex; delays could push the 2026 target.
• Global competition: India must compete with established hubs like Taiwan, South Korea, and the US.
• Technology dependence: While ROHM provides designs, India still needs deeper R&D capabilities to move beyond assembly/testing.
• Supply chain vulnerabilities: Raw material sourcing (silicon wafers, chemicals) may remain globally dependent.

Strategic Context:

• Dholera, Gujarat: India’s first fab with Taiwan’s PSMC.
• Intel MoU: Exploring packaging/manufacturing of Intel products in India.
• Assam facility: Dedicated to assembly and testing, now aligned with ROHM’s automotive chip production.

Together, these moves position Tata as a central player in India’s semiconductor ambitions, with ROHM’s involvement marking a Japan-India technology collaboration milestone.

Mitsui, Sumitomo Lead Japan’s Push Into India’s $1 Trillion Realty Future

Japanese property developers like Mitsui Fudosan and Sumitomo Realty are accelerating investments in India, drawn by rising office rents, low construction costs, and the country’s fast-growing economy.

Why Japan is Betting Big on Indian Real Estate

• Mitsui Fudosan, Japan’s largest property developer, entered India in 2020 through a partnership with RMZ Real Estate in Bengaluru. It is now considering fresh investments worth ¥30–35 billion ($190–225 million) in new projects.
• In November 2025, Mitsui’s management team visited Mumbai and Delhi NCR to scout opportunities, signaling a long-term commitment.
• Sumitomo Realty and other Japanese developers are also exploring India, encouraged by surging office rents and comparatively low building costs.

Drivers of the Push

• Booming economy: India’s GDP growth and expanding corporate footprint are fueling demand for office and residential spaces.
• Rising rents: Commercial rents in major hubs like Bengaluru, Mumbai, and Gurugram are climbing, offering strong returns.
• Low construction costs: Compared to Japan and other Asian markets, India offers cheaper development costs, improving margins.
• Private credit inflows: India has become Asia’s hub for private credit, delivering 12–21% IRR for investors, which makes real estate particularly attractive.

Challenges & Risks

• Regulatory complexity: India’s real estate sector is notorious for bureaucratic hurdles and compliance issues.
• Market volatility: While demand is strong, oversupply in certain segments (luxury housing, office parks) could dampen returns.
• Labour law changes: New labour codes effective in late 2025 may reshape construction costs and workforce management.

Strategic Outlook

• Japanese developers are not just chasing short-term gains—they see India as a long-term growth market, potentially rivaling Southeast Asia.
• With India’s real estate sector projected to grow from $385 billion in 2024 to $1 trillion by 2030, their timing aligns with a transformative phase in the industry.

Japanese developers are pursuing a cautious but deepening entry into India’s property market, while Singaporean firms are scaling aggressively with institutional capital and Korean investors are building cultural-industrial hubs.

🇯🇵 Japan’s Strategy

• Key players: Mitsui Fudosan, Sumitomo Realty.
• Approach: Incremental investments (¥30–35 billion / $190–225 million) in office complexes and partnerships with local developers.
• Focus: Commercial real estate (office parks in Bengaluru, Mumbai, Delhi NCR).
• Style: Conservative, project-by-project expansion, testing regulatory waters before scaling.
• Risk posture: Careful navigation of India’s bureaucratic hurdles and labour law changes.

🇸🇬 Singapore’s Strategy

• Key players: CapitaLand Investment, Lighthouse Canton.
• Scale: CapitaLand plans to invest ₹90,200 crore (~$14.8 billion) by 2028, doubling its funds under management in India.
• Lighthouse Canton: Targeting $1.5 billion in India, split between private credit ($1 billion) and real estate ($500 million).
• Focus: Institutional-grade assets, private equity in real estate, and large-scale fund management.
• Style: Aggressive scaling, leveraging Singapore’s global capital networks.
• Risk posture: Higher tolerance, betting on India as a top global play for alternatives.

🇰🇷 Korea’s Strategy

• Key players: Hyundai, LG, Samsung, Mirae Asset, plus niche developers.
• Scale: Smaller M&A footprint (USD 228 million in 2024), but strong industrial presence.
• Unique hub: “Mini Korea” in Talegaon (near Pune), blending cultural identity with real estate growth.
• Focus: Industrial parks, manufacturing-linked real estate, expat communities.
• Style: Community-driven, tied to industrial expansion and cultural soft power.
• Risk posture: Moderate—less speculative, more tied to operational expansion and diaspora needs.

Comparative Divergence

Country	Scale of Investment	Focus Areas	Style of Expansion	Risk Posture
Japan	$190–225M (per project)	Office complexes, commercial	Incremental, cautious	Conservative, regulatory-sensitive
Singapore	$14.8B (CapitaLand by 2028); $1.5B (Lighthouse)	Institutional real estate, private credit	Aggressive, fund-driven	High tolerance, global capital play
Korea	$228M (2024 M&A) + industrial hubs	Industrial parks, expat communities	Community + industry-led	Moderate, tied to manufacturing

Strategic Insight

• Japan: Testing waters, prioritizing stability and long-term partnerships.
• Singapore: Treating India as a core global growth market, scaling aggressively with institutional capital.
• Korea: Building industrial-cultural ecosystems (like Talegaon’s “Mini Korea”), less about speculative returns, more about embedding presence.

Japan’s risk-managed entry contrasts sharply with Singapore’s capital-heavy bets and Korea’s community-industrial integration. 

SoftBank and Cisco Light Up Japan’s First All-Optical Metro Network — Slashing Energy Use by 90%

In a bold move to redefine urban connectivity and sustainability, SoftBank Corp. has partnered with Cisco to launch Japan’s first All-Optical Metro Network. The initiative, announced in October 2025, marks a major leap in telecom infrastructure—one that promises to cut energy consumption by up to 90% while preparing Japan’s cities for the data demands of the AI era.

The Technology Behind the Transformation

Scope of All optical network deployment

At the heart of this next-generation network lies Cisco’s Routed Optical Networking architecture, a paradigm shift that eliminates the need for traditional optical-electrical-optical (O-E-O) conversions. Instead of converting light signals into electrical ones at each node—a process that consumes significant power and space—the new system enables end-to-end optical transmission across metro networks.

• Cisco 8000 Series Routers: Built for scale and efficiency, supporting 400G and beyond. These routers enable massive throughput with minimal energy draw.
• Cisco Silicon One Q200 Chips: Custom-built ASICs delivering up to 7x the switching capacity of previous generations while consuming half the power.
• Segment Routing and EVPN: Advanced routing protocols optimize traffic flow, reduce latency, and simplify operations across metro domains.

Why It Matters: Energy, AI, and the Future of Connectivity

SoftBank’s new metro network isn’t just about speed—it’s about sustainability. By removing power-hungry transponders and simplifying the network architecture, the all-optical design dramatically reduces energy use and carbon emissions. This aligns with SoftBank’s broader commitment to achieving net-zero carbon emissions.

• Massive bandwidth for data-intensive applications
• Lower latency for real-time services like autonomous vehicles and smart cities
• Reduced operational complexity through converged infrastructure

Deployment and Roadmap

The first phase of the rollout was completed in Osaka Prefecture in September 2025. SoftBank plans to expand the network nationwide by 2027, building on its nationwide core optical network completed in 2023. This metro layer will serve as the connective tissue between core and access networks, enabling seamless, high-speed data flow across Japan’s urban centers.

A Strategic Alliance

This collaboration deepens the longstanding relationship between SoftBank and Cisco, who have worked together on multiple network modernization efforts. According to SoftBank’s CTO Keiichi Makizono, “This next-generation network will not only support our growing data demands but also contribute significantly to our sustainability goals.”

Kevin Wollenweber, SVP and GM of Cisco Networking, echoed the sentiment:

Our Routed Optical Networking solution is designed to help customers like SoftBank build a more scalable, efficient, and sustainable internet for the future.

SBI Divests 13.18% Stake in Yes Bank to Japan’s SMBC in Landmark Cross-Border Deal

State Bank of India (SBI), the country’s largest lender, today, announced the successful completion of the divestment of a 13.18% (approx.) stake in Yes Bank Limited (YBL) to Sumitomo Mitsui Banking Corporation (SMBC). SMBC is a Japanese multinational financial services company belonging to the Sumitomo Mitsui Financial Group (SMFG) and is amongst the leading foreign banks in India. SMFG is the second largest Banking Group in Japan with Total Assets of US$ 2.0 trillion (approx.).

Mr. C. S. Setty, Chairman, IBA & SBI

SBI became the largest shareholder of YBL in March 2020 under the Yes Bank Limited Reconstruction Scheme, 2020, as notified by the Central Government. Subsequently, SBI had also acquired additional shares as part of follow-on public offer by YBL in July 2020. Post the aforesaid divestment, SBI will continue to remain a shareholder in YBL with a shareholding of 10.8% (approx.) of YBL shares (Residual shareholding).

The partial stake sale by SBI and other shareholder Banks in YBL to SMBC represents the largest cross-border investment in the Indian banking sector. The transaction has received the necessary regulatory and statutory approvals including from the Reserve Bank of India and the Competition Commission of India.

SBI Chairman, Shri Challa Sreenivasulu Setty said, “Yes Bank restructuring plan by RBI in 2020 was an innovative, first of its kind public sector – private sector partnership that was fully supported and facilitated by Government of India. We are incredibly proud of the journey we have shared with Yes Bank in supporting their transformation since we came onboard as the major shareholder in 2020. This is perhaps the best example of protecting the customer interests of a large bank by collaborative efforts of SBI and other banks under the guidance of Government of India and RBI. We are excited to welcome SMBC, a marquee financial institution, as a strategic partner through the largest cross-border transaction in India’s banking sector. Their global expertise will be a great complement to Yes Bank’s ongoing progress and future ambitions”.

SBI and the other selling Shareholder Banks were advised by SBI Capital Markets Limited as their financial advisor and S&R Associates as their legal advisor.

India’s Chip Ambitions Scale Up: L&T Semiconductor Buys Fujitsu Power IP for ₹110 Crore

India’s Fabless Chipmaker Accelerates Global Expansion with Japan Deal

In a move that signals India’s rising ambitions in the global semiconductor arena, L&T Semiconductor Technologies (LTSCT) has acquired the power module design assets of Fujitsu General Electronics (FGEL) for ¥2 billion (₹110 crore). The acquisition includes proprietary IP, patents, and R&D infrastructure focused on high-efficiency power electronics—critical for electric vehicles, industrial automation, and energy systems.

The deal, approved by FGEL’s board on June 9, is expected to close by September 23, pending regulatory clearance under Japan’s Foreign Exchange and Foreign Trade Act. LTSCT’s manufacturing partner, Kaynes Semicon Pvt Ltd, will simultaneously take over FGEL’s production facilities, creating a dual-pronged expansion into design and fabrication.

This acquisition marks a pivotal step in India’s journey toward semiconductor self-reliance,” said Sandeep Kumar, CEO of LTSCT and Chair of India’s Semiconductor Product Leadership Forum. “We’re not just buying assets—we’re inheriting decades of design excellence.

Why This Matters: Power Electronics as a Strategic Frontier

• Design patents and IP for high-voltage, high-efficiency modules
• R&D equipment for prototyping and testing
• A foothold in Japan’s advanced semiconductor ecosystem

FGEL, a legacy player in precision electronics, expects to record an extraordinary gain of ¥2 billion in its Q1 FY26 earnings.

Global Strategy: Fabless, Focused, and Expanding

• Targeting $500 million in revenue before considering an IPO
• Exploring entry into China by FY27, with outsourced production
• Investing ₹300 crore in R&D, with over a dozen products in development

This acquisition complements LTSCT’s broader strategy to become a global supplier of industrial and automotive chips, while anchoring India’s position in the semiconductor value chain.

India’s Semiconductor Vision: 100 Design Firms by 2035

As Chair of the Semiconductor Product Leadership Forum, Kumar is spearheading a national initiative to launch 100 new chip design firms by 2035. The goal: transform India from a backend service provider into a global IP powerhouse.

We’re building an ecosystem where design leads, not follows,” Kumar emphasized. “This deal is proof that Indian firms can compete—and win—on the global stage.

What’s Next

• Expand product portfolio across energy, mobility, and industrial sectors
• Deepen global partnerships in Japan, Europe, and the US
• Accelerate India’s transition from chip consumer to chip creator

As the world races to secure semiconductor supply chains, LTSCT’s strategic bet on design-first innovation could be a blueprint for India’s tech future.

India's First Micro Substation Switches On: Compact, Clean, and Ready to Scale

In a breakthrough that could transform how electricity reaches homes in crowded cities and remote villages, Tata Power Delhi Distribution Ltd (Tata Power-DDL), in collaboration with Japan’s Nissin Electric, has launched India’s first micro substation in Rohini, Delhi.

Traditionally, power travels through large substations that occupy a lot of space and require complex infrastructure. But this new micro substation is different. It's compact, efficient, and smart—small enough to fit into tight urban spaces yet powerful enough to deliver electricity directly from high-voltage transmission lines to regular households.

At the heart of this setup is something called a Power Voltage Transformer (PVT). It steps down electricity from very high voltages (like 66,000 volts) straight to the low voltage we use at home (around 240 volts), without needing the usual multi-tiered infrastructure. Think of it as a shortcut that saves land, cuts costs, and speeds up power delivery.

This pilot project—supported by Japan’s energy research body, NEDO—is currently lighting up around 20 to 30 homes, but each unit can serve 50 to 60 families. It’s especially promising for areas where building traditional substations is difficult or too expensive.

The micro substation is considered plug-and-play as it dramatically simplifies the traditional power infrastructure setup.Instead of building a full-scale substation with multiple transformers and switchyards, this unit taps directly into high-voltage lines and steps down the power to household levels in one go.

 

India's first Micro-Substation equipped with a Power Voltage Transformer (PVT) launched by Tata Power-DDL and Nissin Electric Co. Ltd, at Tata's Rohini plant in New Delhi on Monday. (Image - ANI /Economic Times) 

The Power Voltage Transformer (PVT), switchgear, protection systems, and distribution board come as a single, modular unit. That means fewer moving parts, faster deployment, and easier maintenance. Thus, it doesn’t require large plots or complex construction. The unit is compact and pre-engineered, so it can be installed quickly—even in tight urban spaces or remote terrains.

Beyond just saving space, these micro substations also reduce carbon emissions by nearly 45% compared to diesel generators, making them a cleaner alternative for backup or primary power needs.

To sum it up: plug-and-play power is here, and it could be a game-changer for India's “24x7 Power for All” dream. Whether you're a tech expert tracking smart grid innovations or a local resident tired of power cuts, this tiny transformer box packs a big punch.

Besides, the micro substations like the one developed by Tata Power-DDL and Nissin Electric are also well-suited for powering EV charging stations in space-constrained urban areas. PVTs used in these setups can be configured to support three-phase power, which is essential for fast EV charging.

And, by decentralizing power delivery, these micro substations reduce stress on the main grid—especially useful when multiple EVs charge simultaneously.

Capgemini, Dai-ichi Life Partner to Establish GCC in India

Capgemini and Dai-ichi Life Holdings have signed a multi-year agreement to establish a Global Capability Center (GCC) in India. This initiative aims to accelerate Dai-ichi Life’s digital transformation by leveraging India's skilled talent pool to enhance IT and digital strategies.

The GCC will focus on advanced software development, AI and data solutions, infrastructure modernization, and cybersecurity. It will initially support operations in Japan, the United States, and Australia, with plans to expand further. The partnership follows a Build-Operate-Transfer model, allowing Dai-ichi Life to gradually internalize critical digital functions.

Capgemini will bring its global expertise to co-innovate solutions that streamline operations and enhance customer service. Dai-ichi Life’s CEO, Tetsuya Kikuta, emphasized that this collaboration will strengthen in-house capabilities in AI, data, and cybersecurity, setting the foundation for long-term innovation.

The specific location of the Global Capability Center (GCC) in India hasn't been publicly disclosed yet. However, given Capgemini's strong presence in cities like Bengaluru, Pune, and Hyderabad, it's likely to be in one of India's major tech hubs.

Dai-ichi Life Holdings, Inc. is a major Japanese life insurance company, founded in 1902 and headquartered in Tokyo, Japan. It operates globally, offering insurance, asset management, and financial services across multiple markets.

Dai-ichi Life has expanded internationally, including subsidiaries like Protective Life Corporation (U.S.), Dai-ichi Life Vietnam, and Dai-ichi Life Cambodia. It also has a presence in India through Star Union Dai-ichi Life Insurance (SUD Life), a joint venture with Bank of India and Union Bank of India.

Maruti Suzuki and JETRO Collab to Facilitate Business Opportunities for Startups from India & Japan

Maruti Suzuki has signed a Memorandum of Understanding (MoU) with the Japan External Trade Organization (JETRO) to foster innovation and create business opportunities for startups in India and Japan. This collaboration aims to provide Indian startups access to Japan’s innovation ecosystem while enabling Japanese startups to explore opportunities in India.

Startups selected through Maruti Suzuki’s four innovation programs—Accelerator, Incubation, Mobility Challenge, and Nurture—will be eligible to participate in networking events and activities facilitated by this partnership. The initiative aligns with India's Make in India and Startup India programs, reinforcing cross-border innovation.

Hisashi Takeuchi, MD & CEO of Maruti Suzuki, emphasized that startups are key drivers of innovation and economic growth, and this MoU will help promising Indian startups explore the Japanese business landscape. Meanwhile, Takashi Suzuki, Chief Director General of JETRO India, highlighted that Maruti Suzuki exemplifies the successful partnership between India and Japan, and this collaboration will further strengthen business ties.

This partnership could be particularly interesting given industry trends and strategic analysis.

Startups chosen through Maruti Suzuki’s four innovation programs:

1. Accelerator,
2. Incubation,
3. Mobility Challenge and
4. Nurture, will be eligible to participate in these events. 

Startups from Japan can explore the Indian startup ecosystem by participating through JETRO.

Mr. Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited, said, “Startups are key drivers of innovation and economic growth. Through our multi-format innovation programs, we have been engaging with startups in India to co-create technology-driven solutions relevant to the automobile manufacturing and mobility space. We see great potential in Indian startups, and with this MoU with JETRO, we will be able to provide a platform for these promising startups to explore the Japanese business landscape.”

Mr. Takashi Suzuki, Chief Director General, JETRO India said, “Maruti Suzuki stands as one of the finest examples of the successful partnership between India and Japan. With this MoU, we are creating opportunities for even more fruitful business collaborations between our two nations. This MoU aims to foster innovation, drive economic growth, and further strengthen the deep-rooted ties between India and Japan.”

Maruti Suzuki’s Innovation Programs:

The Company, through the Maruti Suzuki Innovation programs, is proud to partner with the Government of India’s Startup India initiative. To spur innovation in the automotive space, the Company has built multiple programs - 1) Accelerator, 2) Incubation, 3) Mobility Challenge and 4) Nurture - that provide the right direction and support to startups in developing innovative solutions that help solve business and societal problems. In the journey of 6 years, over 5,000 startups have been screened, 150 startups were engaged and 25 of these startups have been onboarded as partners delivering value to our business.

About JETRO:

JETRO, or the Japan External Trade Organization, is a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. Originally established in 1958 to promote Japanese exports abroad, JETRO's core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their global export potential.

Infosys Sells 2% Stake in Its Japanese JV HIPUS to Mitsubishi Heavy

Infosys has officially completed the sale of a 2% stake in HIPUS to Mitsubishi Heavy Industries (MHI). This move strengthens Infosys' presence in Japan and deepens its collaboration with MHI, which has been a long-standing client of HIPUS. The transaction was finalized ahead of the expected Q1 FY26 timeline reinforcing Infosys' commitment to supporting Japanese enterprises with next-generation digital solutions.

Established in 2019, HIPUS is a Japan-based procurement solutions joint venture led by Infosys. It specializes in procurement solutions for Japanese corporations, leveraging digital platforms and sourcing expertise. MHI's investment signals a broader push toward data-driven procurement strategies and expanded business opportunities in the region.

Infosys holds a majority stake in HIPUS, and the venture has attracted strategic investments from major Japanese industrial players, including Hitachi, Panasonic, and Pasona. Recently, Mitsubishi Heavy Industries (MHI) acquired a 2% stake in HIPUS, deepening its collaboration with Infosys and expanding its procurement capabilities.

Infosys shares responded positively, closing at ₹1,592.60, up 1.50% on the BSE.

India Seeks Japanese Tech to Power Next-Gen Fighter Jets & Tanks

In a move that promises to reshape India's defence manufacturing landscape, the Indian government is reportedly exploring the incorporation of Japanese technology for the co-production of next-generation engines for fighter jets and tanks. This strategic dialogue, initiated at the historic Manekshaw Centre in Delhi, was marked by a high-level meeting between Indian Defence Minister Rajnath Singh and his Japanese counterpart, General Nakatani.

Tapping into a Legacy of Engine Excellence

IHI F7 engine for test (Source - Wikipedia) 

Japanese expertise in aero-engine and tank propulsion technologies spans nearly a century. Companies such as Kawasaki Heavy Industries, Mitsubishi Heavy Industries, and Ishikawajima-Harima Heavy Industries, which form the backbone of Japan's Aero Engine Corporation, have a long track record of designing and manufacturing high-performance powerplants for global markets.

These engines, built using advanced materials like high-temperature alloys and precision machining techniques, are used in some of the world's most demanding aviation and armored applications.

By collaborating with Japan, India intends to leverage this deep technical know-how to overcome persistent bottlenecks in its indigenous engine programs, such as those for the Advanced Medium Combat Aircraft (AMCA) and Tejas Mark II.

Engine Technologies: From Fighter Jets to Tanks

The technical challenges involved in developing engines for modern fighter jets and tanks are formidable but distinct. For fighter jets, propulsion systems must feature an exceptional thrust-to-weight ratio, high fuel efficiency, and the ability to operate reliably at high altitudes and speeds. They incorporate cutting-edge combustion systems, turbine blades made from exotic alloys, and advanced digital control systems that optimize performance under extreme conditions.

On the other hand, tank engines require immense low-end torque and efficient power delivery to support heavy armor and unpredictable terrains. They must also deliver consistent performance across long operational periods without compromising on durability.

By joining forces, India and Japan hope to combine India’s robust manufacturing practices—evident in its success in maintenance, repair, and overhaul (MRO) contracts for US warships—with Japan’s innovative engine design capabilities, creating a synthesis that could set new standards for military propulsion technologies.

Enhancing Broader Defence Capabilities

General Electric GEnx engine, specifically designed for the Boeing 787 Dreamliner.
Japan's IHI has responsibility for the design, manufacture and assembly of about 13% of the engine, which primarily include the rotating members of the low pressure turbine, the aft part of the high pressure compressor airfoils, and fan mid-shaft. GEnx is a trademark of GE

The discussions between India and Japan were not confined solely to engine technology. Both leaders recognized the value of a holistic defence partnership, which included mutual cooperation in emerging domains such as automation, artificial intelligence, cyber security, and space technology. This broader approach is expected to boost the overall capabilities of Indian forces aboard air, land, and sea. Notably, Japan’s invitation to India to join the Global Combat Air Programme (GCAP), aimed at developing a sixth-generation stealth fighter jet, underscores the strategic depth of this multifaceted collaboration.

Such initiatives not only bolster the immediate technological edge but also set the stage for long-term transfer of cutting-edge technology and skills—a critical component in India's "Make in India" vision for self-reliance in defence production.

Geo-strategic Implications and Future Prospects

F7-10 Turbo fan engine rear, at Iwaguni Air Base.

Amid shifting power dynamics in the Indo-Pacific, the India–Japan co-production initiative marks a significant step forward in strategic defence ties. Deepened military collaboration between the two nations is expected to serve as a counterbalance to regional threats while reinforcing maritime cooperation and regional stability.

Over the coming years, joint production ventures like the engine co-development project could catalyze further innovation in both nations’ defence sectors and stimulate a ripple effect across related high-tech industries.

Moreover, the successful fusion of Japanese technological finesse with India’s robust industrial base may pave the way for additional collaborative projects and enhance not only combat performance but also the resilience of supply chains in critical defence domains.

The initiative signals a new era where international co-production is not merely about sharing costs but is fundamentally about integrating complementary strengths. For India, this is not just a stop-gap measure to overcome current challenges in fighter jet and tank engine development—it is a strategic investment in future technological capabilities.

By harnessing the established expertise of Japanese manufacturers, India can fast-track its journey toward building world-class defence hardware that meets the rigorous demands of modern warfare. In doing so, the Indo-Japan partnership is setting a gold standard in defence innovation—one that will undoubtedly capture the attention of global defence analysts and industry leaders alike.

Japan's Sojitz Steps into India’s Clean Energy Sector through GPS Renewables’ New $400 Mn Biomethane Platform

Sojitz Corporation (“Sojitz”) invests in a holding structure of the special purpose company established jointly by GPS Renewables Private Limited. (“GPSR”) and Indian Oil Corporation Ltd. (“IOCL”), which designs, constructs, operates, and provides maintenance for biomethane plants in India (“GPSR-IOCL Biomethane Platform”). Through this strategic investment, Sojitz will foray into biomethane production and sales in India.

Sojitz will work in collaboration with IOC GPS Renewables Pvt. Ltd. (IGRPL), a joint venture between GPS Renewables and Indian Oil Corporation Ltd, to develop and operate biomethane production facilities using agricultural waste as feedstock. IGRPL plans to establish 30 biomethane plants by FY 2026 - FY 2027 with a production capacity of 160,000 tons of biomethane annually. These projects have a total outlay of over USD 400 Mn. EY was the exclusive M&A investment banker and Cyril Amarchand Mangaldas led by Partner Alok Sonkar was the transaction advisor representing GPS Renewables.

GPS Renewables and Sojitz Corporation

Biomethane is produced by purifying biogas and it can be a direct replacement for fossil fuel, significantly reducing greenhouse gas emissions and promoting circular economy.

Commenting on the investment, Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “Sojitz and GPSR group have a shared vision of improving India’s energy self-sufficiency. As the country’s energy demand continues to rapidly grow, it’s crucial for us to prioritize biofuels and find ways to reduce our dependence on fossil fuels. This collaboration with Sojitz is a step towards increasing the production of cleaner sources of energy while reducing air pollution caused by the open burning of agricultural waste”.

Sojitz indicates that India is one of its key strategic markets and plans to play an active role in its transition to renewable energy. Green transformation (GX) business is a priority for Sojitz, and to advance this initiative further, a dedicated organization has been set up to drive their GX initiatives. Sojitz currently focuses on developing renewable energy projects that have the potential to accelerate India’s biomethane sector while also addressing a few key environmental concerns such as air pollution.

Through this investment, Sojitz and GPSR will work to drive India’s clean energy goals by accelerating the expansion of biomethane production and operation across the country. The companies will leverage GPSR’s expertise in biomethane production processes, technology expertise, indepth experience in design, construction, operation, and maintenance of biomethane plants. Additionally, IOCL’s expansive network with gas consumers will play a crucial role in scaling distribution. Furthermore, Sojitz will assess opportunities for biomethane production beyond India by deploying GPSR’s technology in new regions to explore opportunities in the broader bioenergy sector.

About Sojitz Group

Sojitz Corporation was formed out of the union of Nichimen Corporation and Nissho Iwai Corporation, both companies that boast incredibly long histories. For more than 160 years, their business has helped support the development of countless countries and regions. Today, the Sojitz Group consists of approximately 400 subsidiaries and affiliates located in Japan and throughout the world, developing wide-ranging general trading company operations in a multitude of countries and regions.

Sojitz Group is engaged in a wide range of businesses globally, including manufacturing, selling, importing, and exporting a variety of products, in addition to providing services and investing in diversified businesses, both in Japan and overseas. Sojitz operates with a 7-division structure comprising the Automotive Division; the Aerospace, Transportation & Infrastructure Division; the Energy Solutions & Healthcare Division; the Metals, Mineral Resources & Recycling Division; the Chemicals Division; the Consumer Industry & Agriculture Business Division; and the Retail & Consumer Service Division.

About GPSR Group

Headquartered in Bengaluru, GPS Renewables (“GPSR”) is a full-stack biofuels firm offering technology and project solutions for climate-positive biofuel projects. Starting from captive biogas plants, GPSR has scaled up to set up some of the world’s largest RNG plants. In 2022, GPS Renewables launched GPSR Arya Pvt Ltd (“ARYA”) a wholly-owned subsidiary, to commission BOO (Build-Own-Operate) projects, augmenting its climate impact ambitions.

Japan Airlines Faces Cyberattack Disrupting More Than 20 Domestic Flights

Japan Airlines faced a cyberattack that disrupted more than 20 domestic flights. The attack, which occurred on December 26, 2024, was identified as a denial-of-service (DDoS) attack designed to overwhelm the airline's network with massive data transmissions. Ticket sales for same-day flights were temporarily suspended.

Fortunately, the airline managed to halt the attack and restore its systems within hours, ensuring that flight safety was not compromised.

The cyberattack disrupted both internal and external systems, leading to delays of over 30 minutes for 24 domestic flights. Despite the disruption, Japan Airlines confirmed that no customer data was compromised. The incident highlights the ongoing challenges and vulnerabilities in cybersecurity, especially as Japan strengthens its defense strategies and collaborations with international partners.

Japan Airlines took immediate action by shutting down the affected router to prevent further damage. Systems were restored later in the day, and flights resumed normally by December 27.

This incident is a stark reminder of the importance of robust cybersecurity measures in today's digital age.

In the past year, Japan has experienced several high-profile cyberattacks.To recall, in June 2024 Japanese space agency, JAXA, reported a series of cyberattacks since 2023. Although no critical data related to rockets, satellites, or defense systems was compromised, the agency took steps to bolster its cybersecurity measures.

Last year, a cyberattack paralyzed operations at a container terminal in Nagoya city of Japan, for three days. This incident highlighted the vulnerabilities in Japan's digital infrastructure.

In 2018, Cathay Pacific Airways of America suffered a data breach that compromised the personal data of 9.4 million customers, including credit card information and passport details. The breach continued until May 2020.

These incidents underscore the urgent need for enhanced cybersecurity measures in the aviation industry to protect operations, passenger safety, and organizational reputation.

Tata Electronics Signs MoU with Tokyo Electron to Purchase Semiconductor Equipment and Services

Tata Electronics has signed a memorandum of understanding (MoU) with Tokyo Electron Limited (TEL) to purchase semiconductor equipment and services.

This strategic partnership aims to accelerate the semiconductor equipment infrastructure for India's first Fab being built by Tata Electronics in Dholera, Gujarat, and its assembly and test facility in Jagiroad, Assam.

The collaboration will focus on both front-end fabrication (creating semiconductor wafers) and back-end packaging (assembling and testing semiconductor chips).

Additionally, Tata Electronics' workforce will receive training on TEL equipment. Tata Electronics' workforce will receive specialized training on Tokyo Electron's equipment, ensuring high-quality production and maintenance.

The collaboration will also support ongoing R&D initiatives to improve semiconductor manufacturing processes and technologies

Further, TEL will explore opportunities to leverage India's talent to establish engineering services in India. TEL plans to leverage India's talent pool to establish engineering services in India, supporting its global product development efforts.

This collaboration is expected to strengthen the semiconductor manufacturing ecosystem in India and drive innovation across multiple technology nodes.

Notably, Tata Electronics is building India's first semiconductor fabrication unit (Fab) in Dholera, Gujarat, with an investment of Rs 91,000 crore. Additionally, they are setting up an assembly and test facility in Jagiroad, Assam, with an investment of Rs 27,000 crore.

This strategic collaboration aims to create a robust semiconductor manufacturing ecosystem in India, driving innovation and supporting various applications such as automotive, mobile devices, artificial intelligence (AI), and more.

Originally established as Tokyo Electron Laboratories, Inc. in 1963, Tokyo Electron Limited (TEL) is a leading global company headquartered in Tokyo, Japan. It specializes in providing solutions for the MAGIC market (Metaverse, Autonomous Mobility, Green Energy, IoT & Information, Communications). The company operates in Japan, Taiwan, North America, South Korea, Europe, Southeast Asia, and China.

TEL has a presence in India primarily through its collaboration with Tata Electronics for the semiconductor manufacturing project. While TEL's direct operations in India are focused on this partnership, their advanced semiconductor equipment and solutions are being utilized to build India's first semiconductor fabrication unit (Fab) in Dholera, Gujarat, and an assembly and test facility in Jagiroad, Assam.

The TEL-Tata Electronics collaboration is expected to enhance India's semiconductor manufacturing capabilities and contribute to the growth of the electronics and technology sectors in the country.