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☆ Japan to add $2.3 billion subsidy to Rapidus for Chitose chip plant, media report
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: +1 min

TOKYO, April 10 (Reuters) - Japan's industry ministry is finalising a plan to provide state-backed chip maker Rapidus an additional 300 billion yen ($2.27 billion) in funding to build a semiconductor plant in the northern island of Hokkaido, a local paper reported on Saturday. Rapidus, which in February picked Chitose, near Sapporo, as the site for a cutting-edge two-nanometre chip factory, previously secured an initial 70 billion yen funding from the government. The additional grant will be used to help Rapidus build a prototype line scheduled to launch in 2025, the Hokkaido Shimbun paper said, citing multiple unidentified sources. The Japanese government is also offering up to 476 billion yen in subsidies to a Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW) plant in Kyushu, in which Sony Group Corp (6758.T) and Denso Corp (6902.T) each have a minority stake. ($1 = 132.3100 yen)Reporting by Kantaro Komiya; Editing by Kenneth MaxwellOur Standards: The Thomson Reuters Trust Principles.

☆ Virgin Orbit bankruptcy casts shadow over Japan's space dreams
▼ + stars: | 2023-04-07 | by ( Eimi Yamamitsu | ) www.reuters.com time to read: +4 min

Oita prefecture, home to Japan's largest number of hot springs, partnered with Virgin Orbit in 2020 to create its first Asian spaceport at Oita Airport using a Boeing (BA.N) 747 for horizontal rocket launches. Two Japanese companies, ANA Holdings (9202.T) unit All Nippon Airways Trading Co and little-known Japanese satellite development start-up iQPS Inc emerged among the top six creditors when Virgin Orbit filed for Chapter 11 bankruptcy protection on Tuesday. ANA said it was hopeful Virgin Orbit, which has said it is seeking a buyer, would be able to restructure and resume business. "We pray that Virgin Orbit will resume their business for the development of the global space industry." "It is possible that some other company will buy Virgin Orbit.

☆ ValueAct ratchets up criticism of Japan's Seven & i
▼ + stars: | 2023-04-07 | by ( ) www.reuters.com time to read: +1 min

"Seven & i did not answer any of the nine questions posed by ValueAct in a clear and specific way," ValueAct told Reuters in a statement, a day after Seven & i independent directors promised to continue reviewing strategic alternatives. In response, Seven & i said in a statement to Reuters that its strategy committee will continuously discuss reforms to the group structure. "We plan to express the views of our board, which will include responses to questions from shareholders, around mid April," it said. Shares of Seven & i slid 4% on Friday, after its profit outlook for this financial year failed to meet market expectations. Reporting by Kantaro Komiya and Makiko Yamazaki; Editing by Jacqueline Wong and Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

☆ Japan searching for 10 people aboard crashed military helicopter
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +2 min

[1/5] An unidentified object floating in the ocean is seen near the site of a military helicopter crash, in the sea near Miyakojima, Okinawa Prefecture, Japan, in this handout photo taken on April 6, 2023. 11th Regional Coast Guard Headquarters-Japan Coast Guard/HANDOUT via REUTERSTOKYO, April 6 (Reuters) - Japan on Thursday said rescue efforts were under way to locate any survivors after one of its military helicopters carrying 10 people crashed in the sea near Miyakojima, part of the country's southwest Okinawa island chain. Morishita did not say whether the helicopter was involved in tracking any Chinese military activity. Japanese Coast Guard and military ships and aircraft that located aircraft wreckage in the water were searching for the missing four helicopter crew members and six passengers. Reporting by Tim Kelly, Mariko Katsumura and Kantaro Komiya Editing by Chang-Ran Kim, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

While factory output rebounded in February, some analysts warn of mounting downside risks as slumping global demand for technology goods hits the country's exports. Inflation will probably stay elevated at least during the first half of this year," said Yoshiki Shike, chief economist at Dai-ichi Life Research Institute. Separately, factory output rose 4.5% in February from January, better than a forecast 2.7% gain and rebounding from a revised 5.3% drop in January, on easing supply bottlenecks for carmakers. "There's a bigger risk of a downgrade in manufacturers' output plans due to weaknesses in the information-technology (IT) sector. Global demand is shifting away from goods towards services, which is bad news for Japan's export-reliant economy," Shinke of Dai-ichi Life Research said.

REUTERS/Maxim Shemetov/File PhotoTOKYO, March 17 (Reuters) - Japan's major companies have concluded their annual labour talks with average wage hikes of 3.8% for the coming fiscal year, the largest raise in about three decades, trade union confederation Rengo said on Friday. The preliminary survey of 805 unions affiliated with Rengo showed the average hike rate of 11,844 yen ($89) per month, according to the labour organisation. "Many unions received in full or exceeded their demand for wage hikes," Rengo chief Tomoko Yoshino told a news conference. Those businesses have often struggled to pass on rising costs to their customers. It's unclear whether the rising wage trend will be sustainable, let alone create the "virtuous cycle" of stronger economic growth and 2% inflation long sought by Japan's central bank.

The world's third-biggest economy has struggled to make a solid post-COVID recovery, undermined by lacklustre household consumption and a global slowdown. Slowing shipments to China, which fell for a third straight month, have also shattered policymakers' hopes for a quick rebound from the pandemic doldrums. Exports to China, Japan's largest trading partner fell 10.9% year-on-year in February, registering a second straight month of double-digit decline, as demand weakened for cars, auto parts and display-making equipment. Japan has now posted a trade deficit for 19 straight months. "Chances are 50-50 that Japan may slide into recession," said Takeshi Minami, chief economist at Norinchukin Research Institute.

☆ 'Omurice', comfort food for Japanese and Koreans, a symbol of warmer ties
▼ + stars: | 2023-03-16 | by ( Kantaro Komiya | ) www.reuters.com time to read: +3 min

Kishida and Yoon will reportedly share a more formal dinner of sukiyaki beforehand, but the real ice-breaker could be when they sit down for omurice, Kawabata said. Japan and South Korea are holding a summit for the first time in 12 years, seeking to mend relations that had deteriorated severely. "It could be an effort to foster a laid-back mood, through a casual dish that both Japanese and Koreans consider comfort food," he said. "Yoon may have been impressed with the softness of Japanese-style omurice," Kawabata said. "I hope the world discovers that Japanese food culture also has a dish like this," he said.

"Until now, the ministry has taken the defence companies for granted," said Masahisa Sato, an influential ruling party lawmaker and former deputy defence minister. Three of them, Mitsubishi Heavy, Mitsubishi Electric and IHI Corp (7013.T), which makes jet engines, bridges and heavy machinery, confirmed they had also taken part in other lower-level discussions. Reuters asked 10 of Japan's military suppliers, including Toshiba, Mitsubishi Electric, Daikin and Subaru, for interviews with their defence unit managers. Despite diplomatic tensions, China is Japan's top trade partner and a major manufacturing base for many Japanese companies. Even so, Japanese companies often refer to their military products as "special equipment," the government official said.

Businesses, under government pressure to increase wages to boost household consumption, are struggling to motor on in the face of muted demand. Japan GDP revised down on weak consumptionPrivate consumption, which makes up more than half of the country's GDP, grew 0.3%, the data showed, downgraded from an initial estimate of a 0.5% increase. Consumption of goods was also less solid than previously estimated, the data showed. Domestic demand as a whole knocked 0.3 percentage point from revised GDP growth, slightly more than initially estimated, while net exports added 0.4 percentage point. Reporting by Kantaro Komiya and Eimi Yamamitsu Editing by Chang-Ran Kim & Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

☆ Japan's real wages drop at fastest pace since 2014 as hot inflation takes toll
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +4 min

TOKYO, March 7 (Reuters) - Japan's real wages fell the most in nearly nine years in January, official data showed, as four-decade-high inflation squeezed the purchasing power of consumers and undercut efforts by policymakers to revive a COVID-ravaged economy. read moreInflation-adjusted real wages, a barometer of households' purchasing power, fell by 4.1% in January from a year earlier, the largest decrease since May 2014, labour ministry data showed on Tuesday. The fall in real wages comes as major Japanese firms including Toyota, Nintendo and Fast Retailing pay heed to policymakers' calls and union demands by announcing plans for historic pay rises. The feeble nominal growth in wages in January was well short of the 5.1% consumer inflation rate used to calculate pay in real terms. Currently, Japan's core consumer inflation, which excludes volatile fresh food prices but includes oil products, is running at 4.2%, the fastest pace since 1981.

Under the plan, South Korea would compensate former forced labourers through an existing public foundation funded by private-sector companies, South Korea's Foreign Minister Park Jin told a briefing. SOUTH KOREAN FUNDSRelations plunged to their lowest point in decades after South Korea's Supreme Court in 2018 ordered Japanese firms to pay reparations to former forced labourers. Overall there are fewer than 1,300 living victims of forced labour in South Korea, according to media estimates. The South Korean companies include KT&G (033780.KS), Korea Electric Power Corp (KEPCO) (015760.KS) and other companies that benefited from a 1965 treaty between South Korea and Japan. Asked whether Japanese companies would pitch in to compensate, Park said both Japanese and South Korean businesses were considering a plan to contribute.

☆ Japan unions ask average 4.5% wage hike, biggest since 1990s
▼ + stars: | 2023-03-04 | by ( Kantaro Komiya | ) www.reuters.com time to read: +2 min

A survey of more than 2,000 unions nationwide showed an average 4.49% raise request for this year, first time above 4% since 1998's 4.36%, according to the Japanese Trade Union Confederation (JTUC). Despite the higher cost burden, major Japanese firms have promised large pay increases to retain skilled workers amid labour crunch. The JTUC preliminary survey showed the average union demand during this year's annual labour talks, called "shunto" in Japanese, was much larger than 2022's 2.97%. JTUC, commonly known as "Rengo", is the largest labour organisation in the country representing about seven million workers. Bank of Japan officials have said the outcome of the wage hikes is an important criterion to determine the future course of its ultra-loose monetary policy.

FILE PHOTO: Japanese Prime Minister Fumio Kishida poses during his news conference in Tokyo, Japan on February 24, 2023. Stanislav Kogiku/Pool via REUTERSThe news comes as households grapple with intensifying cost-of-living pressures amid elevated inflation for items such as energy and food, hitting consumption and smaller businesses. Thanks to the energy subsidies, a leading indicator of Japan’s consumer prices rose at a slower pace in February, data showed on Friday. However, an index stripping away the effect of fuel hit a fresh three-decade high in a sign of broadening inflationary pressures. The Japanese government will consider asking major utilities to reduce price increases for households in light of recent declines in energy prices, Kyodo news agency reported on Friday.

The Tokyo core consumer price index (CPI), which excludes fresh food but includes fuel costs, exceeded the BOJ's 2% target for nine straight months. The slowdown was mostly due to the effect of government energy subsidies to curb soaring utility bills, the data showed. It marked the fastest year-on-year pace of increase since August 1991, when the index also rose 3.2%. Service inflation, which the BOJ sees as key to achieving sustained wage growth, perked up to 1.3% in February from 1.2% in January, the data showed. Nationwide core consumer prices rose 4.2% in January from a year earlier, hitting a fresh 41-year high, as an increasing number of companies passed on higher costs to households.

☆ Japan reschedules H3 rocket launch to March 6, after Feb. 17 abort
▼ + stars: | 2023-03-03 | by ( ) www.reuters.com time to read: 1 min

TOKYO, March 3 (Reuters) - Japan's space agency said it plans to launch what would be its first new medium-lift rocket in three decades on March 6, more than two weeks after the initially scheduled launch was aborted. The final decision will be made taking into account weather conditions, the Japan Aerospace Exploration Agency (JAXA) said on Friday. JAXA on Feb. 17 suspended the launch of the H3 rocket, built by Mitsubishi Heavy Industries (7011.T), moments before the planned lift-off because its secondary booster engines failed to ignite. Japan built the H3 to enhance its independent access to space and boost its chances of capturing a bigger share of the global launch market from rivals. Reporting by Kantaro Komiya and Miho Uranaka; Editing by Himani Sarkar and Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

☆ Japan factory activity shrinks the most in 2-1/2 years
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +2 min

TOKYO, March 1 (Reuters) - Japan's factory activity shrank in February at the fastest pace in over two years, a private survey showed, highlighting companies' struggles amid a global economic slowdown, raw material inflation and policymakers' calls for higher wages. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index released on Wednesday fell to 47.7 in February from January's 48.9. Manufacturing output and new orders contracted for an eighth consecutive month and at the fastest rates in 31 months, the survey showed. On the brighter side, supplier delivery delays were the least prevalent in two years, the survey showed. The Bank of Japan remains an outlier in the current global monetary tightening phase, committing to maintaining ultra-low rates to shore up its COVID-ravaged economy.

☆ Japan foreign minister to skip G20 meeting in India -official
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: 1 min

March 1 (Reuters) - Japan's Foreign Minister Yoshimasa Hayashi will skip a meeting of G20 foreign ministers due to take place in New Delhi, India, this week, a Japanese government official said. State Minister for Foreign Affairs Kenji Yamada will represent Japan at the meetings scheduled for Wednesday and Thursday, the foreign ministry said in a statement. Hayashi will attend an in-person meeting of representatives from the Quad countries - the United States, India, Australia and Japan - in India on Friday, the ministry said. Reporting by John Geddie and Kantaro Komiya; Editing by Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

☆ Japan's factory output posts biggest fall in 8 months on weak autos, chips sectors
▼ + stars: | 2023-02-28 | by ( Kantaro Komiya | ) www.reuters.com time to read: +4 min

In contrast, retail sales posted their fastest growth in nearly two years, separate data showed, highlighting the divergent paths between soft manufacturing and robust service-sector activity. Factory output fell 4.6% in January from a month earlier on a seasonally adjusted basis, government data showed on Tuesday. Separate data showed Japanese retail sales rose 6.3% in January from a year earlier, beating a median market forecast for a 4.0% gain and posting an eleventh consecutive month of expansion. Despite the production cuts, retail sales of autos rose 19.3% year-on-year, suggesting strong pent-up demand among domestic consumers caused by delivery delays. Compared with the previous month, retail sales expanded 1.9% in January, following a 1.1% rise in December, the data showed.

☆ Japan's factory output suffer biggest fall in 8 months
▼ + stars: | 2023-02-28 | by ( Kantaro Komiya | ) www.reuters.com time to read: +1 min

Summary Jan output -4.6% m/m vs forecast -2.6%Manufacturers see Feb output +8.0%, Mar +0.7%Jan retail sales +6.3% y/y vs f'cast +4.0%Retail sales +1.9% m/mTOKYO, Feb 28 (Reuters) - Japan's factory output shrank at the fastest pace in eight months in January as shrinking overseas demand amid a global economic slowdown took a heavy toll on business activity. Factory output fell 4.6% in January from a month earlier on a seasonally adjusted basis, government data showed on Tuesday. The contraction was much larger than economists' median forecast of a 2.6% decline and followed an upwardly-revised 0.3% increase in December. Separate data showed Japanese retail sales rose 6.3% in January from a year earlier, beating a median market forecast for a 4.0% gain and posting an eleventh consecutive month of expansion. Compared from the previous month, retail sales expanded 1.9%, the data showed.

☆ Japan authorities seek criminal charges against Dentsu, others over Olympics contracts
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +2 min

TOKYO, Feb 28 (Reuters) - Japan's Fair Trade Commission said on Tuesday it filed criminal complaints against Dentsu (4324.T) and five other firms as well as seven individuals over alleged bid-rigging on contracts for the Tokyo 2020 Olympics. The complaint marks the latest development in months of investigations into alleged corruption in the planning and sponsorship of the Tokyo Olympics and Paralympics Games, held in 2021 after a pandemic-driven postponement. Tokyo prosecutors are planning to the bring the charges on Tuesday, Kyodo News agency said. Dentsu, Cerespo and Fuji Creative have already been barred from bidding for contracts at the industry, foreign and education ministries for nine months. Reporting by Satoshi Sugiyama, Kantaro Komiya, Kaori Kaneko; Editing by Chang-Ran Kim and Edwina GibbsOur Standards: The Thomson Reuters Trust Principles.

☆ Japan's factory activity shrinks at fastest pace in 2-1/2 years-PMI
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) fell to a seasonally adjusted 47.4 in February, from a final 48.9 in the previous month. Factory output and new orders decreased for an eighth straight month and at faster rates than January, the sub-index data showed. By contrast, service-sector activity grew for a six month with further relaxation of domestic COVID-19 countermeasures. The au Jibun Bank flash services PMI rose to an eight-month-high of 53.6 seasonally adjusted in February from the previous month's 52.3 final. Overall, the au Jibun Bank Flash Japan composite PMI was at 50.7 in February, in line with last month's final figure, as the gloomy manufacturing index was offset by a rosy service PMI.

☆ Rapidus considering building chip factory in Hokkaido, northern Japan-TV Tokyo
▼ + stars: | 2023-02-15 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Feb 15 (Reuters) - Japan's state-backed chip venture Rapidus is considering building a chip factory in Hokkaido, northern Japan, TV Tokyo reported on Wednesday. Rapidus will likely make a formal decision on new factory site by as early as end-February, according to the report. A spokesperson of the chip venture confirmed that Hokkaido governor will visit its headquarters in Tokyo on Thursday to discuss plant building. Japan has said it will invest an initial 70 billion yen ($525 million) in Rapidus, a venture led by tech firms including Sony Group Corp (6758.T) and NEC CorpRapidus told Reuters earlier this month that it would need about 7 trillion yen ($54 billion) of mostly taxpayer money to begin mass producing advanced logic chips in around 2027. ($1 = 133.2700 yen)Reporting by Kantaro Komiya and Kaori Kaneko; Editing by Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

☆ Toyota to ramp up on batteries, keep its options open, new CEO says
▼ + stars: | 2023-02-13 | by ( ) www.reuters.com time to read: +2 min

[1/4] Koji Sato, who was named as new CEO of Toyota Motor Corp, attends Tokyo Auto Salon 2023 at Makuhari Messe in Chiba, east of Tokyo, Japan January 13, 2023. REUTERS/Kim Kyung-HoonCompanies Toyota Motor Corp FollowLexus FollowTOKYO, Feb 13 (Reuters) - Toyota Motor Corp (7203.T) will ramp up its battery-electric offerings by focusing on its Lexus luxury brand, its incoming chief executive said on Monday, but the company will not deviate from a long held strategy of exploring other technologies. Toyota, which popularised the hybrid technology of the Prius, has said that hybrids make better sense for many drivers, especially in markets where the infrastructure is not ready to support batteries. Sato said Toyota would accelerate its battery-electric offerings by focusing on the Lexus. While he oversaw the creation of Lexus's first fully electric model, he has previously spoken of keeping open other options for powering vehicles.

☆ Heavy snow in Japan disrupts flights and trains, closes roads
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Feb 10 (Reuters) - Heavy snow across much of Japan on Friday grounded 100 flights, blocked dozens of roads and disrupted train services, government authorities and operators said. Domestic airlines including ANA (9202.T), Japan Airlines (9201.T) and others cancelled a total of 100 flights due to the snow as of noon, according to the land ministry. Parts of 31 highways were closed in central and eastern Japan, while 54 central Tokyo expressway exits were blocked, the ministry said. Services on more than a dozen train routes in central and eastern Japan had suspended operations or were planning to do so, the land ministry said. East Japan Railway (9020.T), the country's biggest train operator, said a high-speed service between Tokyo and the northeastern prefecture of Yamagata would be suspended later on Friday.

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