Japan weighs railway upgrades as part of defense spending push

Kawasaki Heavy Industries Ltd. has set a new goal of achieving defense sales worth 1 trillion yen or more by the mid-2030s, following Japan's increased spending on defense to address emerging security challenges. This ambitious target is nearly double the current fiscal year's estimate of around 510 billion yen. The defense sales goal for fiscal 2030, once projected to range from 500 billion to 700 billion yen, has been raised to 700 billion to 800 billion yen, as reported by Kawasaki Heavy on Tuesday.

The revised defense sales target reflects Japan's growing emphasis on innovative warfare techniques, including the utilization of drones and artificial intelligence. In recent years, the country has recognized the importance of nurturing its domestic defense industry, particularly in light of Russia's full-scale invasion of Ukraine in 2022 and its increased use of drones. Such developments have underscored the need for Japan to bolster its defense capabilities to counter evolving threats.

Kawasaki Heavy aims to develop unmanned aerial vehicles capable of working in tandem with manned aircraft for jamming and strikes, as well as unmanned underwater vehicles. The company's president, Yasuhiko Hashimoto, acknowledged the heightened public awareness of the significance of defense in recent years. Hashimoto emphasized that Kawasaki Heavy remains steadfast in its commitment to being a defense-oriented company, with physical AI emerging as a key area for investment.

The company plans to integrate AI technology into sectors crucial for national security, such as semiconductors and shipbuilding.