Market Chatter: Japan Seeks to Scale Up Drone Production With Startup Support
Japan is moving to develop a domestic drone industry that can scale production in emergencies and strengthen national security, with the Ministry of Defense planning to support startups and expand civilian manufacturing capacity, Nikkei reported Friday.Under a new program by the Acquisition, Technology & Logistics Agency, drone prototypes will be tested in Self-Defense Forces exercises, with feedback on performance to help companies prepare for mass production, the report said.Domestic players such as ACSL (TYO:6232) and Terra Drone (TYO:278A) have emerged, but limited production infrastructure and heavy reliance on Chinese suppliers, led by DJI, remain key gaps, according to the report.The government plans to reflect the push in an updated security strategy while addressing regulatory hurdles that constrain drone testing and development, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)