Japan to Boost Domestic Production of Telecom Equipment

Japan to Boost Domestic Production of Telecom Equipment
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Japan is preparing measures to boost its telecommunications equipment industry due to economic security concerns. The country’s Ministry of Internal Affairs and Communications plans to introduce support measures such as subsidies for wireless infrastructure.

These measures would cover the latest equipment, including base stations, along with specialised kit for emergency services and air traffic control. Major Japanese vendors Fujitsu and NEC each have a tiny share of the global base station market, while Huawei holds 31.3% and ZTE 13.9%.

By increasing the competitiveness of Japanese companies, the ministry reportedly stated it aims to reduce dependence on imported equipment. It is expected to convene a meeting with industry groups to identify priority areas for support by the end of the year, with specific measures to be drafted by mid-2026. The plan is also expected to include support for private sector R&D and staff development.

Huawei and ZTE are effectively banned from supplying telecom equipment to government agencies due to cybersecurity risks and potential intelligence leaks. The move in 2018 aligned Japan with restrictions in the US, Australia, and New Zealand. Japan-based mobile operators later opted not to deploy equipment from Huawei and ZTE in their 5G networks.