Japan's Defense Blueprint Embraces Drones, AI, and Hypersonic Missiles

Japan's Defense Ministry has unveiled an ¥8.9 trillion ($55.6 billion) budget request for the next fiscal year, outlining a significant transformation of its military strategy. The proposal, disclosed on Monday, prioritizes the integration of drones, artificial intelligence, and advanced missiles to modernize the country's defense posture.

The requested amount is a modest increase from the current year's ¥8.8 trillion budget. However, final figures are expected to rise after the government of Prime Minister Sanae Takaichi approves a new security strategy later this year, which aims to bolster Japan's counterstrike capabilities.

This initiative builds on a five-year defense plan established in 2022, which doubled Japan's military spending to roughly 2% of its GDP. The buildup is designed to counter China's growing assertiveness in the region, a move Beijing has criticized as "new militarism."

Central to the new proposal is a shift toward "new warfare," inspired by the extensive use of drones in the conflict in Ukraine. The ministry argues that this requires the domestic development and mass production of low-cost, uncrewed weapons to cut expenses, minimize casualties, and create a more efficient air defense network.

A key element involves using attack drones in tandem with long-range missiles for more cost-effective counterstrikes. For the fiscal year starting April 2027, the ministry is requesting funding for unmanned attack drones that can be launched from above or underwater. Officials also note that uncrewed systems could help offset a declining pool of military personnel due to Japan's aging and shrinking population.

To further strengthen its offensive reach, the ministry is seeking to develop hypersonic missiles capable of being launched from submarines. This complements recent efforts to fortify Japan's southwestern islands with longer-range missiles and interceptors.

On the technological front, the ministry plans to introduce an integrated AI platform for command and control. This system aims to improve the speed and accuracy of decision-making, including battlefield assessment and target selection. Japan is exploring the use of existing foreign AI technologies, including those from the U.S., while also developing its own domestic systems or combining both. A next-generation "AI orchestrator" platform is planned to integrate multiple AI systems while ensuring autonomous selection and operation.

The ministry also intends to build a dedicated "Defense Ministry cloud" to ensure secure data transmission and stable communications during emergencies or disasters. Specific costs for these technological initiatives were not disclosed.

Addressing supply chain vulnerabilities, the budget request includes funding for a state-owned, contractor-operated system to guarantee stable defense equipment production. This would involve the government acquiring factories and outsourcing manufacturing to private firms. Additional funding is earmarked to support companies' defense-related research and development.

While major suppliers like Mitsubishi Heavy Industries and Kawasaki Heavy Industries have seen profits rise, the broader industry faces challenges. Decades of constitutional limits on the use of force, coupled with poor profitability and reputational concerns, have led many companies to exit the defense sector.