By Kentaro Matsumoto and Miyabi Endo / Yomiuri Shimbun Staff Writers

With the release of an outline for Japan's 550 billion dollar (about 84 trillion yen) investment in the United States on Tuesday, Japan sought to highlight progress on the investments that were pledged in the two nations' July agreement on U.S. tariffs.

As part of U.S. President Donald Trump's visit to Japan, the two sides released the "Joint Fact Sheet for Japan-U.S. Investment," which lists candidate companies from both nations and 21 planned projects, primarily in the energy sector.

However, the document is unclear in parts. A key challenge for Japan will be to scrutinize the project plans to ensure they benefit both nations.

Chance for growth

In one of the projects, a GE Vernova subsidiary, in which Hitachi Ltd. has a stake, is expected to be involved in building small modular reactors (SMRs), a type of nuclear reactor. The project is projected to be worth as much as 100 billion dollars. Hitachi will consider providing equipment and technology. The plan also includes investments related to the power grid.

Hitachi's president and CEO, Toshiaki Tokunaga, signed a memorandum of understanding with U.S. Commerce Secretary Howard Lutnick on Tuesday for the project. In a statement, Tokunaga expressed his enthusiasm, saying the strategic investment by the Japanese and U.S. governments would lend strong support to the development of global infrastructure and AI innovation.

The fact sheet also includes another nuclear power project. Westinghouse is expected to construct more of its AP1000 pressurized water reactors, as well as SMRs, and Japanese companies, such as Mitsubishi Heavy Industries Ltd., Toshiba Corp. and IHI Corp., are considering getting involved.

IHI is looking to double revenue from its nuclear power business to about 100 billion yen by the 2030s. Mitsubishi Heavy Industries, which sees nuclear power as a growth area, is also developing SMRs. Observers are watching whether Japan-U.S. collaboration will lead to expanded business opportunities.

Additionally, SoftBank Group Corp. is linked to a project to develop power infrastructure, which is seeing growing demand due to the AI boom. The project, which includes the development and operation of power infrastructure in the United States, is expected to be worth up to 25 billion dollars.

Mitsubishi Electric Corp., which handles power systems in the United States, has also expressed interest in such areas as the provision of systems and equipment for power generation for data centers. A related project shows that the company could investment up to 30 billion dollars more.

Profitability and risks

The 550 billion dollar investment in the United States will likely be made through investments, loans and loan guarantees by such entities as the Japan Bank for International Cooperation and Nippon Export and Investment Insurance.

The investment candidates will be narrowed down by a consultative committee formed by the two nations, in dialogue with an investment committee composed solely of Americans and chaired by Lutnick. Trump, who will have candidates recommended to him by the investment committee, will make the final selection.

The United States has signaled that if Japan does not invest the money as agreed, tariffs could be raised. Japan therefore wants to demonstrate that it is willing to make the investment quickly. But some say that caution is needed so that profitability and risks can be carefully assessed, as projects will primarily be undertaken by private companies.

"In truth, the United States' aim is to build a framework that will contribute to the revival and expansion of its manufacturing industry," said Takahide Kiuchi of Nomura Research Institute Ltd. "Japan needs to continue to carefully examine whether the investment plan will be unequal, whether it will harm Japan's national interests."

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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October 29, 2025 08:20 ET (12:20 GMT)

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