Mitsubishi Electric is preparing to expand its manufacturing capabilities for the Global Combat Air Programme (GCAP) by building 3 new facilities to produce electronic systems for the next-generation fighter aircraft being jointly developed by Japan, Britain, and Italy. The company expects the programme to begin contributing to its earnings by the end of the decade.
According to Chief Financial Officer Kenichiro Fujimoto, the project could start generating profits around fiscal 2029 or 2030, or possibly earlier. He added that the company will receive compensation for deploying personnel and developing prototypes during the programme.
GCAP aims to deploy a frontline fighter aircraft by 2035 and is led by Mitsubishi Heavy Industries in Japan, BAE Systems in the UK, and Leonardo in Italy. Canada has joined the programme as an observer, while Germany and Saudi Arabia have been discussed as potential future partners, provided their participation does not delay the 2035 deployment target.
Mitsubishi Electric plans to increase its annual defence business revenue by more than 50% to ¥690 billion ($4.4 billion) by March 2031. The company expects exports to play a major role in this growth, including GCAP-related work, equipment for Mogami-class warships being supplied to Australia, and components for AIM-120 AMRAAM air-to-air missiles manufactured by RTX Corp.
Japan eased decades-old restrictions on arms exports in April to strengthen its domestic defence industry as global conflicts continue to increase demand for military equipment. Fujimoto also noted that the depletion of U.S. missile inventories due to conflicts involving Iran and continued support for Ukraine could create future export opportunities for Japanese defence manufacturers, although no specific plans have been disclosed.
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