German technology companies are increasingly forming partnerships with Japanese firms to access manufacturing capabilities and specialized supply chains. During Chancellor Friedrich Merz’s visit to Japan, the two nations prepared to sign 33 memoranda of understanding covering AI, nuclear fusion, and advanced technologies.
Quantum Systems, a drone manufacturer, announced the creation of a Japanese subsidiary and signed agreements with Mitsubishi Chemical and Panasonic. Meanwhile, Proxima Fusion, a spin-out from the Max Planck Institute, secured deals with Kyoto Fusioneering and Fujikura to advance fusion energy and superconducting tape production.
Aerospace company OHB partnered with Astroscale to explore orbital servicing, while Helsing is pursuing military contracts in Japan with support from Rakuten. Additionally, QUDORA Technologies launched a Japanese subsidiary and joined a government-backed research project alongside Kyocera.
Investment flows are also increasing, as evidenced by Panasonic’s €30 million equity investment in tado in March 2025. Japan is actively fostering its startup ecosystem, aiming to grow annual investment to approximately €56 billion by the 2027 financial year.
