※[Global Morning Briefing] summarizes global news delivered by Seoul Economic Daily.
Japan to Invest 95 Trillion Won in US Small Modular Reactor Construction
A plan for Japan to pour about 10 trillion yen (about 95 trillion won) into building small modular reactors (SMRs), out of its total $550 billion (about 835 trillion won) investment package for the United States, is taking concrete shape. Against the backdrop of surging US power demand from artificial intelligence (AI) and data centers, SMRs have emerged as a key pillar of US-Japan economic cooperation.
On Wednesday, the Nihon Keizai Shimbun (Nikkei), citing a senior US government official, reported that a plan for Japan to invest up to $25 billion (about 38 trillion won) in US SMR company NuScale Power is being discussed as the third agenda item.
The joint SMR construction by GE Vernova and Hitachi, previously confirmed as the second investment, is also set to receive up to $40 billion (about 60 trillion won), with Tennessee cited as a leading candidate for the construction site. US Commerce Secretary Howard Lutnick stressed in an interview with Nikkei that it was "a good opportunity for the US and Japan to build an SMR supply chain together and export it to the world."
President Donald Trump plans to expand nuclear power capacity to four times current levels by 2050 and to begin construction of 10 reactors by 2030. The United States, where new nuclear plant construction has effectively halted since the Three Mile Island accident on March 28, 1979, is treating SMRs—which can be mass-produced in factories and distributed—as a breakthrough for expanding power infrastructure.
However, voices of concern are also being raised within Japan. Criticism has emerged among Japanese companies that the government is moving quickly even before profitability reviews of the first investment have been completed. The Mainichi Shimbun pointed out that the focus had shifted toward political showmanship rather than economic feasibility.
Meanwhile, the United States is further widening its efforts to attract funds from allies. European Union (EU) companies are set to invest about $600 billion (about 913 trillion won) in the energy, AI, and defense sectors, while Taiwan plans to pursue $165 billion (about 253 trillion won) in semiconductor plant construction and research and development projects led by TSMC.
Anthropic Leases First Data Center Directly, Moves to Reduce Reliance on AWS and Google
Anthropic, the developer of the AI model Claude, has leased a data center directly for the first time, shifting to a strategy of reducing its dependence on hyperscalers. The move is an attempt to own its own servers to respond to surging computing demand and cut costs.
IT-focused outlet The Information reported Tuesday that Anthropic had signed at least 12 letters of intent for data center leases with US developers in recent months.
The scale is about 1 gigawatt (GW). Unlike Anthropic's previous practice of renting servers from Amazon Web Services (AWS) and Google to run Claude, these contracts will shift to a structure in which the company directly purchases equipment such as AI chips and pays only site rent. A plan in which Google guarantees rent payments on the condition that Anthropic uses Google's own chip, the Tensor Processing Unit (TPU), is also under discussion.
Behind this decision lies explosive service growth. As users of the AI agent "Claude Cowork" and the coding tool "Claude Code" surged, server capacity shortages recurred, leading to situations where usage was restricted and drawing user complaints.
Largest competitor OpenAI is showing similar moves. As the "Stargate Project" being pursued with SoftBank and Oracle ran into difficulties, OpenAI is reportedly negotiating to lease a 10GW data center complex in Ohio. A plan in which Nvidia guarantees the rent on the condition that Nvidia chips are used is under review.
Kioxia Tops Toyota as Japan's No. 1 by Market Cap, Signaling AI NAND Flash Super Cycle
Japanese NAND flash (long-term memory) semiconductor company Kioxia Holdings has overtaken Toyota Motor, the symbol of Japanese manufacturing, to take the top spot in market capitalization on the Tokyo Stock Exchange. The memory chip boom driven by surging AI demand has reshaped the landscape of corporate value.
According to Nikkei on Wednesday, Kioxia's share price surged 8% from the previous day, pushing its market capitalization past 44 trillion yen (about 417 trillion won). Kioxia, which ranked 169th in market cap in June last year, soared to the top in just one year amid a stock surge. The continued strength of semiconductor stocks in the US market the previous day is cited as a major factor.
Earnings forecasts in securities circles are also steep. Consolidated operating profit is expected to reach about 7 trillion yen (about 66.44 trillion won) as of March 2027, more than double Toyota's own plan of 3 trillion yen (about 28.4733 trillion won). SMBC Nikko Securities sharply raised its target price from 48,000 yen (about 455,000 won) to 126,000 yen (about 1.196 million won), while Nomura Securities also raised its target from 71,880 yen (about 682,300 won) to 115,000 yen (about 1.09166 million won).
Yoshihiko Kawamura, Kioxia vice president, said at an investor briefing on the 2nd that "we expect to enter a super cycle (a period of surging demand)." Kioxia plans to invest a total of 2.1 trillion yen (about 20 trillion won) in capital expenditure and research and development from April this year through March 2029.
This memory chip boom is a trend spreading across the entire industry. Kioxia and SanDisk in NAND flash, as well as Samsung Electronics and SK hynix, which focus on DRAM, are assessed as enjoying direct benefits from expanded AI investment.
Citigroup Pursues Tokenization of SpaceX and Anthropic Shares, Lowering Barriers to Private Investment
Citigroup is pursuing the launch of a product that tokenizes shares of private companies using blockchain technology. The move targets growing retail investor demand for private investment, spurred by expectations for a SpaceX listing.
According to The Wall Street Journal (WSJ) on Tuesday, Citigroup is discussing the issuance of tokenized shares with late-stage investment companies preparing to go public, such as Anthropic and OpenAI. Although the US Securities and Exchange Commission (SEC) has announced a policy to allow tokenized share trading through an innovation exemption system, trading for US persons is currently banned in principle, so Citigroup plans to prioritize foreign clients until regulations are eased.
The product structure involves putting depositary receipts (DRs) on the blockchain. Citigroup holds ownership of the physical shares, while investors secure the right to profits. Fractional investment in single shares and 24-hour trading are possible, favoring participation by small investors. Trading takes place through the blockchain platform of SIX, the operator of the Swiss stock exchange, with expansion to other blockchain networks under review.
However, the risks are not insignificant. Even with tokenization, the inherent risks of private shares—such as information asymmetry and high volatility—remain, and shareholder rights cannot be exercised. Concentration risk, with trading dependent on a single institution, Citigroup, is also pointed out.
Tokenization competition across Wall Street is also accelerating. JPMorgan Chase is building up a blockchain payment and tokenization platform as a flagship, Goldman Sachs operates tokenized bonds, and BlackRock and Franklin Templeton each run tokenized funds. The WSJ reported that Citigroup and JPMorgan Chase plan to launch a tokenized deposit system next year.
Netanyahu Kept in the Dark on US-Iran Ceasefire Deal: "I Learned of It From Trump's Social Media"
It has emerged that during the process of pursuing a ceasefire deal with Iran, US President Donald Trump completely excluded Israeli Prime Minister Benjamin Netanyahu from the negotiations, without even giving prior notice. Netanyahu, who had strongly pressed for an attack on Iran, was effectively sidelined in the ceasefire negotiations.
According to Axios and CNN on Tuesday, Netanyahu learned of the deal only after Trump posted news of its imminence on the social network service (SNS) Truth Social. CNN, citing Israeli sources, reported that "Netanyahu could not hide his surprise upon encountering Trump's announcement while chairing a meeting on Iran security." Trump appears to have spoken with Netanyahu by phone only after the online disclosure.
The Israeli Prime Minister's Office acknowledged that "Israel is not a party to the Iran ceasefire memorandum of understanding (MOU)," while Trump's final agreement.
