The Ministry of Economy, Trade and Industry opened a public comment period on 9 November on draft rules that would put the amended industrial technology law (Law No. 41 of 2026) into operation. Comments close at 23:59 on 8 December 2026, and the draft cabinet order would take effect on 1 April 2027.
Six fields named
The draft decree designates six priority industrial technologies: AI and advanced robotics, quantum, semiconductors and telecoms, biotech and healthcare, fusion energy, and space. It also lists which ministers oversee each of 32 national research bodies.
A separate draft notice defines which R&D qualifies for early commercialisation treatment in each field. For semiconductors, it covers logic chips made on 2-nanometre-generation processes or finer.
What certified companies would be asked to do
The draft guidelines set field targets, including a domestic quantum computer with more than 10,000 physical qubits by 2030.
Companies with an approved priority R&D plan would be asked to identify their core technologies, limit staff access to them, secure confidentiality pledges from departing employees, and sign non-disclosure agreements with suppliers that hold part of the know-how.
They would also be asked to consult the ministry in advance, with enough lead time, before certain actions involving another party or country. The trigger applies when the company learns of a risk of forced transfer of core technology, or of a risk that core technology could leak because the counterparty violated UN or other international standards in the past five years or operates under foreign-government influence. It also applies when METI itself tells the company to consult.
The listed actions include handing over core intellectual property, providing core technology, joint R&D, R&D in another country, and building or expanding an overseas plant so that its capacity rises by more than 10%. A plant is excluded if 85% or more of its output is consumed in the host country.
Plans, tax treatment and universities
The draft ministerial ordinance caps a certified plan at five years. When METI certifies a plan, it would in principle deliver the certificate within three months of receiving the application. Certified firms would report progress within three months of each fiscal year-end.
A certified company seeking a tax special measure would apply for METI's confirmation within one month of the end of each business year. The ordinance cites provisions of the Special Taxation Measures Act but gives no deduction rates.
A third draft order covers universities and research institutes that want to act as joint R&D bodies with companies. An applicant would need an industry-academia office with a consultation desk staffed by someone with at least three years of relevant experience, plus at least three contract staff and dedicated accounting staff.
Submitting comments
Comments go in Japanese through e-Gov, by post or by email to METI's research and development division. METI says it will treat them as reference for final decisions and will not reply individually.