GCAP Advances to Industrial Build-up: Mitsubishi Electric Constructs Three Avionics Facilities as Canada Joins as Observer Partner
The Global Combat Air Programme (GCAP)—the Anglo-Italian-Japanese sixth-generation fighter jet partnership—is rapidly transitioning from government agreements and preliminary design into a concrete industrial build-up. This shift is highlighted by Mitsubishi Electric’s massive expansion of its defense manufacturing footprint in Japan and Canada’s official entry into the program as an observer partner1, even as BAE Systems and Leonardo push to accelerate the fighter’s operational entry to 2033.
Mitsubishi Electric's Industrial Buildup
On August 6, 2026, Mitsubishi Electric Chief Financial Officer Kenichiro Fujimoto announced plans to construct three new manufacturing facilities in Japan to produce advanced avionics and electronic systems specifically for the GCAP fighter. This expansion will bring the company's total to eight defense-focused plants, representing a major physical and financial commitment to the program.
Fujimoto expects the project to begin contributing to corporate earnings by fiscal 2029 or 2030, or potentially as early as 2028. In an interview with Reuters, he stated:
"My sense is that it could begin contributing to earnings around fiscal 2029 or 2030, or perhaps a year before that... The company will receive compensation for deploying personnel and building prototypes."
Mitsubishi Electric is aiming to increase its annual defense business sales by more than half, targeting 690 billion yen ($4.4 billion) by March 2031, with GCAP exports serving as a primary driver of this growth.
Opportunities from U.S. Missile Depletion
Fujimoto also highlighted an emerging macro-economic opportunity for Japanese defense manufacturers. The severe depletion of U.S. precision-guided missile stocks during its ongoing conflict with Iran, coupled with weapons supplied to Ukraine, is straining Western defense industrial capacity.2
Following Japan's easing of decades-old arms export restrictions in April, Fujimoto noted that Japanese manufacturers are well-positioned to help Washington replenish its arsenals, particularly through the export of components for AIM-120 AMRAAM air-to-air missiles.
Program Expansion and Accelerated Timeline
The industrial buildup coincides with the expansion of the program’s international footprint. Canada has officially joined GCAP as its first observer partner nation, and Singapore is reported to be in exploratory talks.
To maintain momentum and prevent partner fatigue, Leonardo CEO Lorenzo Mariani and BAE Systems chiefs announced during their half-year earnings call on July 31, 2026, a strong push to bring forward the fighter's first entry into service by roughly two years, targeting 2033 instead of the original 2035 date. This accelerated timeline is expected to be achieved by initially fielding a "stripped-down" or "minimum viable product" software configuration3.
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An instance of The collapse of a military project triggers the rapid expansion of surviving international coalitions. — The momentum and expansion of GCAP serves as the primary alternative defense platform following the collapse of the rival FCAS partnership. ↩︎
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An instance of Exquisite precision weapons cannot survive the attrition rates of industrial warfare. — The extreme consumption of high-end precision-guided missiles in active conflicts has left Western defense industries struggling to keep up with attrition. ↩︎
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An instance of Multi-national weapon systems must debut as minimum viable products to prevent scheduling delays and partner fatigue. — To bring the GCAP fighter's first flight forward by two years, developers are willing to compromise on first-day features and launch with a stripped-down software package. ↩︎