Observed Signal · Oct 28, 2026 · Partnership · Source: EU-Startups (European Venture) · Impact: 3/5 · Sentiment: Positive
German startups expand to Japan: defence, fusion, quantum
The article reports on a wave of German startups expanding to Japan, highlighted during Chancellor Friedrich Merz's visit. Quantum Systems announced MoUs with Mitsubishi Chemical and Panasonic and established a Tokyo subsidiary. Proxima Fusion signed partnerships with Kyoto Fusioneering and Fujikura for fusion technology. OHB and Astroscale agreed to explore orbital services. Previous developments include Helsing's partnership with Rakuten, Panasonic's investment in tado°, QUDORA's subsidiary and partnership with Fixstars, and DeepL's Japanese subsidiary. Motivations include access to manufacturing expertise and Japan's startup investment plan. Challenges include language and business culture.
The article highlights a notable trend of German startups expanding to Japan, with significant partnerships in defence, fusion, and quantum computing. It signals growing international collaboration in high-tech sectors, which can influence the European tech ecosystem and cross-border investment flows.
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Key Takeaways & Evidence Grounding
- German Chancellor Friedrich Merz visited Japan, expecting 33 MoUs.
- Quantum Systems announced MoUs with Mitsubishi Chemical and Panasonic, and plans for a Tokyo office.
- Proxima Fusion announced partnerships with Kyoto Fusioneering and Fujikura.
- OHB signed an MoU with Astroscale for orbital services.
- Panasonic invested €30 million in tado° in March 2025.
Connected Companies & Entities
5 Entities mapped“Quantum Systems signed an MoU with Panasonic, and Panasonic previously invested €30 million in tado°.”
“Munich-based drone manufacturer announced agreements with Mitsubishi Chemical and Panasonic and established Quantum Systems Japan K.K.”
“Munich-based defence AI startup, founded in 2021, has been pursuing opportunities in Japan, with Rakuten helping pursue a potential contract...”
“QUDORA Japan was selected for a NEDO project alongside Kyocera and AIST.”
“Cologne-based translation technology company established a Japanese subsidiary in 2023.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Proxima Fusion signs Japanese partnerships for supply chain
Proxima Fusion, a German fusion power company, has signed Memoranda of Understanding (MoUs) with Japanese firms Fujikura and Kyoto Fusioneering to develop critical technologies and industrial supply chains for commercial fusion power. The agreements, signed in Tokyo during a visit by German Chancellor Friedrich Merz, focus on high-temperature superconducting (HTS) tape manufacturing, plasma heating, and fusion fuel cycle technologies. The partnerships aim to strengthen Germany's industrial base for fusion, with a goal of building the world's first fusion power plant in the country. This includes assessing the feasibility of HTS tape production in Germany and advancing gyrotron and fuel cycle technologies. Proxima plans to build its Alpha demonstrator in the early 2030s and its first commercial plant, Stellaris, later that decade, supported by over 50 industrial partners in the Alpha Alliance.
German Defense Startups Expand Ukrainian Ties
During Chancellor Friedrich Merz's weekend visit to Kyiv, German defense startups deepened their partnerships with Ukraine, highlighting the country's role in developing and manufacturing autonomous defense systems. Quantum Systems will have tens of thousands of interceptor drones financed by Germany, to be produced in Ukraine. ARX Robotics and Ukrainian company Roboneers expanded their relationship into a strategic partnership for integrating and co-developing unmanned ground systems. These moves reflect a model where German capital and industrial capacity combine with Ukrainian engineering and battlefield feedback. The broader context includes over €1 billion in additional German military assistance and significant private funding for German defense tech. Quantum Systems raised a €1 billion Series D in July 2026, and ARX Robotics secured €42 million in Series A in 2025. The partnerships aim to scale production and incorporate frontline lessons into Western defense systems.
UK and Germany Launch Industrial Tech Corridor for AI
The UK and Germany have launched an industrial tech corridor aimed at boosting AI and deeptech growth through cross-border partnerships. The initiative, backed by German companies like Allianz, Bosch, RWE, and Siemens, will connect high-growth tech firms with industrial partners and investors. German robotics firm MicroAGI plans to expand in London, creating 180 jobs, while Proxima Fusion will expand its base in Culham. Both countries will also contribute €20 million to joint Quantum research. The corridor is a flagship initiative under the Kensington Treaty and aims to strengthen digital sovereignty.
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