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KDDI, NEC to Launch Joint Cybersecurity Venture by Year-End

The telecom giant hopes to challenge NTT's dominance with overseas expansion strategy.
Japan
k 9433.TSE n 6701.TSE Blue Chip 150 OM 60 Tech 350
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Japanese telecom company KDDI and IT group NEC plan to establish a joint cybersecurity business as early as this year, according to Nikkei reports. The partnership comes as demand surges for protecting critical infrastructure and supply chains against sophisticated cyber threats.

The companies aim to set up 24-hour operation centers globally to monitor for cyberattack indicators and gather intelligence for network defense. They will leverage artificial intelligence to analyze vulnerabilities in government and corporate systems, assigning risk scores to boost defense efficiency.

This alliance challenges domestic market leader NTT Group’s dominance in comprehensive cybersecurity services. By combining resources, KDDI and NEC seek to become one of Japan’s largest cybersecurity providers in terms of specialized personnel and sales volume.

The partnership responds to escalating geopolitical tensions, including Russia’s Ukraine invasion and Taiwan crisis scenarios, alongside growing risks from generative AI. It also aligns with Japan’s cybersecurity push ahead of the expected parliamentary passage of an “active cyberdefense” bill requiring companies to report attacks to the government.

Industry analysts believe increased competition will ultimately strengthen Japan’s cybersecurity capabilities amid rising state-sponsored threats and ransomware incidents targeting critical infrastructure.

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