UK and Japan seal landmark deal worth £18bn
Sir Keir Starmer said Britain and Japan were building a “new era of cooperation” as they agreed a multi-billion pound investment deal.
The Prime Minister hosted his Japanese counterpart Sanae Takaichi for talks ahead of the G7 summit on Sunday.
“The UK and Japan are unlocking significant inward investment totaling more than £9bn in infrastructure and financial services and up to £9bn in offshore wind,” Downing Street said in a statement.
The £18 billion deal is expected to provide a boost to the British economy by creating tens of thousands of new jobs.
Previously, the Ministry of Science, Innovation and Technology said the “landmark technology partnership” between the UK and Japan was accepted and supported by businesses in both countries.
It said a “first-ever” formal partnership has been agreed, combining “the UK’s world-class microchip design expertise with Japan’s advanced manufacturing”.
He added that the collaboration between the UK Semiconductor Center and Japan’s 2nm semiconductor manufacturing facility Rapidus would create a “direct pathway for the UK semiconductor industry to produce cutting-edge chips”.
Rapidus is backed by £11.6bn in Japanese government investment and the department said the deal was “a critical step in strengthening the resilience of the UK semiconductor sector”.
Sir Keir said the UK-Japan Border Technology Partnership “combines UK excellence in R&D and software with Japanese advanced manufacturing experience and expertise”.
He also said Britain and Japan were “working more closely” on defense and that there were “many issues to discuss in an unstable world” ahead of next week’s G7 summit.
He hailed the UK-Japan Defense Capabilities and Industry Council as “hugely important” and said the Gcap fighter development initiative was “at the heart of the relationship between our two countries”.
“I am happy that we are building a stronger cooperation, a new era of cooperation between our two countries,” he said.
It comes after Sir Keir’s leadership survival plans were hit by the shock resignation of John Healey as defense secretary over a dispute over long-term funding for the army.
Mr Healey’s departure from the government was joined by Al Carns, the armed forces minister, as well as two parliamentary aides, piling pressure on the prime minister, who was already facing the threat of a leadership challenge.
Ms Takaichi said Britain and Japan had “strengthened” security cooperation and had “shared strategic recognition”.
“Today, Japan and the United Kingdom have a firm commitment to jointly contribute to peace and stability in the international community and are extremely important, like-minded countries,” he said.
“I believe that our relations have reached a level that can even be called semi-ally.”
A Downing Street spokesman said the prime minister also welcomed “significant new Japanese investment in the UK, supporting tens of thousands of jobs, including real estate and financial services”.
“The leaders discussed the conflict in the Middle East, Russia’s illegal invasion of Ukraine, stability in the Indo-Pacific region, and the importance of resilient global supply chains and free trade,” the spokesman added.
Technology Minister Kanishka Narayan said Japan is “one of our closest technology partners.”
“This agreement will give our talented innovators direct access to vital investment, production and markets for quantum computers, next-generation chips and clean energy,” he said, discussing the UK-Japan Border Technology Partnership.
“At the same time, the UK’s world-class research base, software expertise and pro-innovation environment make us the ideal partner for Japanese firms looking to expand and invest. “Working together, we can support growth and jobs across our countries and build a stronger, safer economy that improves lives across the UK.”
