Han Media: US-Japan Announce Investment Agreement Text ... Invest 100 Billion USD to Build New Nuclear Reactors

¬ Explicitly mentions SoftBank, Hitachi, etc., mentions a 440 billion USD investment plan ... Funds concentrated on power infrastructure

On the 29th, the "Japan-US Joint Fact List on Investment" that outlines Japan's commitment to invest 550 billion USD (approximately 789 trillion KRW) in the U.S. was officially released. In this document published simultaneously by the U.S. and Japan, it roughly introduced a 440 billion USD investment plan by Japanese companies such as Hitachi, Toshiba, Panasonic, and SoftBank Group.

Most of the investment funds, 332 billion USD, will be invested in the construction of "power infrastructure." In other words, Japan will jointly participate in large-scale power supply projects that are essential for the U.S. to gain global leadership in artificial intelligence (AI), including small modular nuclear reactors (SMR), power plants, substations, and transmission lines.

Specifically, Japan will invest up to 100 billion USD in the construction of new nuclear reactors at Westinghouse in the U.S. Companies such as Mitsubishi Heavy Industries, Toshiba, and IHI will also participate. The joint venture between GE and Hitachi, "GE Vernova Hitachi," will advance the SMR project with a maximum scale of 100 billion USD.

SoftBank Group (25 billion USD) will invest in design and operation projects of power infrastructure, Mitsubishi Electric (30 billion USD) will supply generators for data centers, and Panasonic (15 billion USD) will participate in building ESS (Energy Storage Systems) for storing surplus electricity.

Japan will also independently invest 75 billion USD in the construction of "artificial intelligence (AI) infrastructure," with companies such as Mitsubishi Electric, TDK, and Fujikura participating. In addition, Panasonic and Murata Manufacturing will jointly invest 30 billion USD in the "electronic components" field. The Japanese government has decided to separately invest 5 billion USD in "critical minerals" and 1.5 billion USD in "manufacturing." However, Japanese Minister of Economy, Trade and Industry Akira Akiyama stated: "The companies mentioned in the document are not required to participate, and companies not mentioned may also be added later."

On the 29th, according to Japanese media reports, the previous day, U.S. Commerce Secretary Howard Lutnick exchanged memoranda of understanding on investment projects with Hitachi President Toshio Tokunaga, Toshiba President Tarou Shimada, Panasonic Holdings President Masahiro Kusumi, SoftBank Group Chairman Masayoshi Son, and Mitsubishi Electric President Satoshi Kirima in Tokyo. Lutnick said: "This is a new beginning for the good relationship between the U.S. and Japan."

The reason why Japanese funds are concentrated solely on power infrastructure is that the U.S. lacks the electricity needed for AI popularization. According to consulting firm McKinsey, by 2030, the power consumption of U.S. data centers is expected to reach about 606 terawatt-hours (terawatt-hour = 1 million megawatts), four times that of 2023. For U.S. tech companies such as OpenAI and Google, "obtaining electricity" is currently the most urgent issue. Hitachi President Tokunaga said: "The strategic investment of the two countries will provide strong support for the technological innovation of artificial intelligence (AI)."

Source: Chosun Ilbo

Original: www.toutiao.com/article/1847392305691724/

Statement: This article represents the views of the author himself