Japanese startups are racing into defense drone production as Tokyo moves to reduce its reliance on Chinese industrial drones, which currently control 91% of Japan's market.
Prime Minister Sanae Takaichi is backing domestic manufacturing to cut dependence on Chinese suppliers and boost Japan's defense capabilities. The initiative targets the industrial drone sector, where Chinese manufacturers dominate the Japanese market.
Japanese startups are positioning themselves to capture a portion of this market by developing homegrown drone technology for defense applications. The push reflects broader geopolitical concerns about supply chain vulnerability and technological autonomy in critical sectors.
Tokyo's strategy aligns with global trends of governments seeking to establish domestic alternatives to Chinese-controlled supply chains. By fostering local drone production, Japan aims to strengthen its defense infrastructure while supporting domestic innovation and manufacturing.
The government support signals growing momentum for Japanese tech companies to compete in the defense aerospace sector, an area traditionally dominated by larger, established manufacturers.
Defense tech company Hadrian secured $1.37 billion in Series D funding at an $8 billion valuation. The capital will fund expansion of its manufacturing facilities and Opus software platform.
Singapore-based AI infrastructure startup Acrab raised $130 million in Series B funding, surpassing $480 million in total capital raised. The round was backed by existing investors including Vertex Ventures.
Herdr, a runtime platform, has been accepted into Y Combinator's latest batch. The company is maintaining its open-source commitment despite the funding.
ProvenMetal, a Y Combinator S26 startup, manufactures assembled circuit boards domestically in days rather than weeks. The service accepts design files and specifications, addressing a critical gap in US semiconductor supply chains.