With the exception of the 120 mm smoothbore gun, which is made under license from Rheinmetall of Germany, the Type 90 and its subsystems are all designed and built in Japan, leading to higher per unit costs than comparable models from NATO countries such as the M1 Abrams and the Challenger 2. Development of upgrades to the Type 90 suffered both as a result of limited budget, which caused procurement delays, and funding prioritization in favor of the Type 10 Main Battle Tank. Due to a perception that Type 90s are unsuited to operations in the tight confines of Japan's urban areas, they are preferentially assigned to the JGSDF Fuji School Brigade and the 7th Armored Division based in Hokkaido, where there is sufficient room for maneuver. With the exception of training exercises such as the annual Combined Live Fire Exercise hosted by the United States Army at Yakima Training Center in Washington state, the Type 90 has never been deployed overseas, and has never been tested in combat.