The "reverse flow" of technology and the rise of defense technology

The structure surrounding modern security is undergoing an unprecedented paradigm shift.

The era of "spin-offs," where military technology is repurposed for civilian use, as was the case with the internet and GPS, is over. What is happening now is a structural shift, a "spin-on," where civilian technologies such as AI (artificial intelligence) and advanced semiconductors, rapidly evolving through massive private capital and free competition, are flowing back into the realm of national security.

In the United States, emerging defense tech startups like Palantir Technologies and Anduril Industries are signing multi-trillion-yen comprehensive contracts with the Department of Defense, undermining the stronghold of the traditional, heavy, legacy military industry. In Europe, Helsing, specializing in AI-based theater analysis, is reportedly in the final stages of reaching a valuation of $18 billion (approximately 2.8 trillion yen).

This tectonic shift is not unique to Japan. The Japanese government officially shifted its focus towards promoting dual-use research for both military and civilian applications, following the Cabinet's approval of the "7th Basic Plan for Science, Technology and Innovation" for 2026. The news that Rapidus, a state-sponsored semiconductor foundry at the heart of this economic security strategy, has successfully verified the operation of a 2nm (nanometer) generation prototype in Chitose City, Hokkaido, and has completed a massive additional fundraising round of $1.7 billion—approximately 267.6 billion yen—is impactful enough to foreshadow the stirrings of a new era.