JETRO 2026 Report: Japan Inward Investment Reaches Record High
Overview
JETRO compiled the JETRO Inward Investment Report 2026 as a reference for providing information to foreign and foreign-affiliated companies and supporting their investment in Japan. Japan’s inward direct investment flow in 2025 reached a record high, with debt capital and inflows from the United States making major contributions. The investment stock also set a new record. The report describes investment activity in strategic fields such as AI, semiconductors, data centers, and energy, as well as an increase in cross-border M&A into Japan. The government is advancing investment promotion measures based on related strategies and established JFIC to strengthen investment screening.
Key points
- JETRO compiled a comprehensive report to inform foreign companies considering business in Japan and support their investment.
- Both the 2025 inward direct investment flow and the investment stock at year-end reached record highs.
- Investment was brisk in strategic fields such as AI and semiconductors, data centers, and energy.
- The government set out investment promotion based on related strategies and established the Japan Foreign Investment Council (JFIC).
Overview
JETRO compiled the JETRO Inward Investment Report 2026 to provide information for foreign and foreign-affiliated companies considering business in Japan and reference material to support foreign companies investing in Japan.
Impact
With JFIC’s establishment, the government says it will strengthen management of security risks associated with foreign investment and improve consistency in screening criteria and practices across relevant ministries, helping preserve Japan’s open market and create an environment where investors can plan with greater confidence.
Details
The 2025 inward direct investment amount is the net flow under the asset-liability principle. Debt capital rose to 4.1 trillion yen, about 10 times the previous year’s level, and made a major contribution. Funding inflows from financing between corporate group companies are believed to have increased substantially. By country, the United States ranked first, Singapore second, and the United Kingdom third; all three saw substantial year-on-year increases. The top countries by year-end investment stock were the United States, the United Kingdom, and Singapore, in that order.
From January 2025 through June 2026, greenfield investment in Japan included Micron Technology of the United States expanding advanced DRAM production capacity in Hiroshima Prefecture, centered on high-bandwidth memory (HBM) for next-generation AI, and GMI Cloud of the United States developing large-scale AI infrastructure in Kagoshima Prefecture. Investment in data centers and renewable energy was also prominent. Globally, large investments in strategic fields have been seen against the backdrop of technological competition, energy security, and industrial policy. Cross-border M&A and other transactions into Japan reached their highest number since statistics began; the United States led with 120 cases, 83 of which involved equity participation or increased investment.
In its Basic Policy on Economic and Fiscal Management and Reform 2026, the government set out a policy of strategically implementing crisis-management investment and growth investment to strengthen potential growth. It says that concrete directions will be reflected in the Japan Growth Strategy and Regional Future Strategy, formulated in 2026, among other plans, and that it will advance the Inward Direct Investment Promotion Program 2026 based on both strategies. In June 2026, it established the Japan Foreign Investment Council (JFIC), a cross-ministerial framework intended to strengthen screening of inward direct investment.