Leading suppliers of the Japan Self-Defense Forces (JSDF) FY 2023, by contract value

The procurement of defense-related equipment in Japan is tightly regulated by the Ministry of Defense, which either commissions contracts to local suppliers or purchases equipment from the United States via the Foreign Military Sales (FMS) agreement. Mitsubishi Heavy Industries was the leading company in terms of the value of the contracts it took on in the fiscal year 2023, with about 1.68 trillion Japanese yen. Other large players included Kawasaki Heavy Industries, Mitsubishi Electric Corporation, and NEC Corporation. Overall, the contracts signed by the Acquisition, Technology, and Logistics Agency (ATLA) for the SDF amounted to roughly 5.57 trillion yen. 

Domestic production of defense equipment

Most equipment used by Japan’s Self-Defense Forces (SDF) is produced domestically. Major defense equipment include naval vessels and next-generation fighter jets. Defense manufacturing plays a significant role in the aviation industry. The production of defense-related equipment can be expected to increase in the coming years, as the government has committed to overhauling military equipment during the next Medium Term Defense Program.

Foreign Military Sales (purchases)

Foreign Military Sales (FMS) constitute the other avenue for the procurement of weaponry. Japan’s tight military alliance with the U.S. does not only implicate constant U.S. military presence in Okinawa and other prefectures but also entails the aforementioned program that facilitates the purchase of defense equipment. Annual expenditure for FMS is in the triple-digit billion yen range.