PRE-MARKET JAPANESE AND SOUTH KOREAN STOCKS NEWS: Fujitsu (6702 JT) said it will develop 1.4nm chips for AI processing, with production to be outsourced to Rapidus

JAPAN

Fujitsu (6702 JT) - Co. said it will develop 1.4nm chips for AI processing, with production to be outsourced to Rapidus as Japan eyes economic security. (Newswires)

Inpex (1605 JT) - Co. will supply Japan with fossil fuels from Australia on a priority basis as the Strait of Hormuz blockade threatens Middle East shipments, while it has not disclosed volumes and said supply will come from LPG and condensate sold on the spot market. (Newswires)

Mitsubishi Materials (5711 JT) - Co. will invest in a US company that recovers rare earths from industrial waste, betting on advanced refining technology to reduce recycling costs. (Nikkei)

Sky Perfect JSAT Holdings (9412 JT) - Co. is gaining prominence in the defence industry as satellite imagery plays a growing role in identifying and targeting threats in standoff defence. (Nikkei)

Subaru (7270 JT) - Co. signed a JPY 100bln committed credit line to provide flexibility for investment in areas such as hybrids and self-driving technology. (Nikkei)

Taiyo Holdings (4626 JT) - Co. is subject to a planned tender offer by KKR as soon as October, with the private equity firm proposing to spend around JPY 500bln to take the Co. private. (Newswires)

Financials - Mitsubishi UFJ Financial Group (8306 JT), Sumitomo Mitsui Financial Group (8316 JT) and Mizuho Financial Group (8411 JT) plan to divest over JPY 1tln in cross-shareholdings over the next three years to improve capital efficiency. (Nikkei)

SOUTH KOREA

Samsung Electronics (005930 KS) - Co. is reportedly to raise prices for Galaxy Z Fold 7 and Flip 7 amid rising semiconductor costs and war-related headwinds. (Newswires)

Context

Fujitsu's plan to develop 1.4nm chips for AI and outsource production to Rapidus signals a strategic move to enhance its capabilities in a competitive tech landscape while addressing economic security concerns. This development not only highlights the growing demand for advanced AI processing technologies but could also affect related sectors, including semiconductors and investment flows into innovative tech companies across Asia. Traders should watch for potential impacts on Fujitsu's stock and related entities in the semiconductor space, as well as implications for Japanese economic policies aimed at bolstering technological advancement.

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