As one of the world’s leading countries in technological innovation, Japan has long maintained strong competitiveness in high-tech fields such as robotics, artificial intelligence, semiconductors and new energy. These industries are not only an important engine for Japan’s economic growth, but also the key to maintaining its technological leadership on the international stage. In recent years, faced with challenges such as intensifying global competition and an aging domestic population, the Japanese government and enterprises are actively promoting the transformation and upgrading of these high-tech industries, striving to occupy a favorable position in the new round of technological revolution.

This report aims to provide a comprehensive and in-depth industry insight for companies interested in entering the Japanese market and companies starting up in Japan. Through detailed analysis of key high-tech industry areas, including key information such as policy environment, market size, technology trends and major players, it helps readers better understand the current situation and future development direction of Japan’s high-tech industry , and assists companies in Japan Seize opportunities in the high-tech field and achieve sustainable development.

Macroeconomic environment for the development of Japan’s high-tech industry

The development of Japan’s high-tech industry is deeply rooted in its unique and complex macro-environment. This environment is composed of multiple dimensions such as policy, economy, society, and technology, which together shape Japan’s unique position on the global science and technology stage.

1.1 Policy environment

In terms of policy environment, the Japanese government has long implemented a series of strategic policies aimed at promoting technological innovation. The “Japan Revitalization Strategy” proposed in 2013 positioned technological innovation as the core driving force of economic growth, setting the tone for the development of high-tech industries. The “Fifth Basic Science and Technology Plan” released in 2016 proposed a grand blueprint for building a “super-intelligent society” (Society 5.0), aiming to solve social problems and improve productivity through digital transformation. In recent years, the Japanese government has formulated more detailed policies for specific areas:

• “AI Strategy 2019”: Proposes the goal of cultivating 2.5 million AI talents by 2025, and promotes AI applications in key areas such as medical care and agriculture.
• “Quantum Technology Innovation Strategy” (2020): Plans to invest approximately 20 billion yen within 10 years to promote the research and development of cutting-edge technologies such as quantum computing and quantum communications.
• “Basic Policy for the Revitalization of the Semiconductor Industry” (2021): Aims to revitalize Japan’s semiconductor industry, including supporting the production of cutting-edge logic chips and strengthening supply chain security.
• “Green Growth Strategy” (2020): Proposes the goal of achieving carbon neutrality by 2050 and vigorously develops new energy and energy-saving technologies.

These policies not only provide a clear direction for development, but also create a favorable development environment for high-tech enterprises through specific measures such as financial subsidies, tax incentives, and R&D funding support.

1.2 Economic environment

In terms of economic environment, although Japan faces long-term low growth and deflationary pressures, its highly modernized economic structure and mature capital market provide a solid foundation for high-tech industries. Japanese companies’ investment in R&D continues to remain at a high level. According to data from the Ministry of Economy, Trade and Industry, the total R&D investment by Japanese companies in fiscal 2020 reached 13.8 trillion yen, which has remained at a high level despite the impact of the epidemic. The government has also increased technology investment through economic stimulus plans. For example, the 73.6 trillion yen economic stimulus plan launched at the end of 2020 includes a large amount of investment in digital transformation and green technology development. Although Japan’s venture capital market is not as large as that of the United States, it has also grown steadily in recent years, providing more financing channels for high-tech start-ups.

1.3 Social environment

The social environment is another key factor in the development of Japan’s high-tech industry. Japan has one of the oldest populations in the world, with more than 28% of the population aged 65 and over. This demographic challenge has become a powerful driving force for the application of technologies such as robots and artificial intelligence, especially in fields such as medical care and smart homes. Japanese society’s high receptivity to new technologies is another important feature. According to a Cabinet Office survey, more than 60% of Japanese people have a positive attitude towards AI technology, which is much higher than many Western countries. This social atmosphere provides fertile ground for the marketization and popularization of high-tech products. For example, Japan has always been at the forefront of the world in the application of service robots. From restaurant service robots to escort robots, they have been widely accepted and used.

1.4Technical environment

In terms of technology environment, Japan has world-class R&D infrastructure and talent pool. Japanese universities and research institutions maintain leading positions in multiple scientific and technological fields, such as the University of Tokyo’s achievements in quantum computing research and the RIKEN Institute of Science and Technology’s contribution to the development of supercomputers. The government promotes industry-university-research cooperation through a variety of plans, the most representative of which is the “Interdepartmental Strategic Innovation Promotion Project” (SIP). Since its launch in 2014, the project has been used in autonomous driving, the Internet of Things, artificial intelligence, etc. Remarkable results have been achieved in the field. Japan also actively promotes international scientific and technological cooperation, such as the cooperation agreement signed with the United States in the field of quantum information science, and cooperation with the European Union in the research and development of 6G communication technology. These international collaborations not only broaden Japan’s technological horizons but also strengthen its position in global innovation networks.

Japan’s innovation ecosystem is also constantly improving. In addition to the traditional R&D centers of large companies, many innovation incubators and accelerators have emerged in recent years, such as Plug and Play in Tokyo, to provide more support for high-tech entrepreneurs. The government also focuses on supporting potential high-tech start-ups through initiatives such as the “J-Startup” program to help them compete in the global market.

This multi-level, all-round macro environment provides strong support for the continued innovation and global competitiveness of Japan’s high-tech industry. Despite facing challenges such as intensifying global competition and population decline, Japan is striving to maintain its leading position in the new round of scientific and technological revolution and industrial transformation by continuously optimizing the policy environment, adjusting economic structure, adapting to social changes and strengthening technological innovation. Japan’s experience shows that the development of a country’s high-tech industry not only requires direct policy support and capital investment, but also requires the creation of favorable conditions at social, economic, cultural and other levels to form a benign innovation ecosystem.

Robot industry

Japan’s robot industry has long been a global leader and is one of the important pillars of the country’s high-tech industry. With its deep industrial foundation and continuous technological innovation, Japan continues to lead global trends in robotics technology and applications.

2.1 Industry Overview

The market size of the Japanese robot industry is showing steady growth. According to data from the Japan Robot Industry Association (JARA), Japan’s robot market size reached 898.9 billion yen in 2020. Despite the impact of the COVID-19 epidemic, it has maintained a relatively stable performance. It is expected that by 2025, the market size will exceed 1.6 trillion yen, with an average annual compound growth rate of approximately 12.3%. This growth is mainly driven by factors such as the rebound in demand for industrial robots, the expansion of the application of service robots, and the increase in demand for medical robots.

In terms of application fields, the Japanese robot industry shows a diversified development trend. Industrial robots are still the main force in the Japanese robot industry and are widely used in automobile manufacturing, electronic product assembly and other fields. With the promotion of the concept of intelligent manufacturing, industrial robots are developing in a smarter and more flexible direction. In terms of service robots, as the aging of the population intensifies and labor shortages become more prominent, their application in Japan is rapidly expanding. From hotel reception, restaurant service to family escorts, service robots are gradually integrating into Japanese daily life. Medical robots are also increasingly used in surgical assistance, rehabilitation training, nursing support and other aspects. For example, the application of the walking assistance robot developed by Toyota and the Pepper robot from SoftBank in medical institutions demonstrates the huge potential of medical robots.

2.2 Policy support

The Japanese government attaches great importance to the development of the robot industry and has introduced a series of supporting policies. The “New Robot Strategy” released in January 2015 aims to realize the “robot revolution” and proposes the goal of expanding Japan’s domestic robot market to more than double the current size (approximately 1.2 trillion yen) by 2020. The strategy covers many fields such as manufacturing, service industry, nursing and medical care, and infrastructure, and points out the direction for the development of Japan’s robot industry. In addition, the “Future Investment Strategy 2017” further emphasizes the integration of robotics with emerging technologies such as AI and IoT to promote the fourth industrial revolution.

In terms of financial subsidies and tax incentives, the government has taken a variety of measures to support the development of the robot industry. This includes providing subsidies of up to 50% for the introduction of robotic equipment to small and medium-sized enterprises, implementing the “Internet Industry Tax Credit” policy, allowing enterprises to deduct IT investments (including robots) used to improve productivity before tax, and setting up “robot empirical experiments” Grant” to support companies conducting field testing of robotic applications. These policies not only stimulate the development of the robot industry, but also promote the widespread application of robot technology in various industries.

2.3 Market structure

The Japanese robot market is highly concentrated and is dominated by a few large companies. FANUC is a global leader in the field of industrial robots, with a market share of approximately 25%. Yaskawa has strong strength in industrial robots and automation systems, with a market share of approximately 20%. Kawasaki Heavy Industries has strong capabilities in various industrial robots, with a market share of approximately 10%. Although it is a Swiss company, ABB also occupies an important position in the Japanese market, with a market share of approximately 15%. In addition to these large companies, Japan also has many small and medium-sized robotics companies that occupy an important position in specific market segments or technology fields.

In terms of market distribution, the Japanese robot industry not only faces the domestic market, but also vigorously expands overseas markets. The domestic market has benefited from the demand for automation in the manufacturing industry and innovative applications in the service industry, maintaining steady growth. In terms of exports, Japan is one of the world’s largest exporters of industrial robots. The main export markets include China, the United States, South Korea and Europe. In 2020, despite the impact of the epidemic, Japan’s robot exports still reached 435.6 billion yen, demonstrating the international competitiveness of the Japanese robot industry.

2.4 Technology trends

The Japanese robotics industry is undergoing rapid technological innovation, with key trends including collaborative robots and the integration of artificial intelligence and robots. Collaborative robots are robots that can work safely with human workers and are becoming an industry hot topic. Fanuc’s CR series and Yaskawa Electric’s HC series collaborative robots are typical representatives. They can work together with humans without safety protection, greatly improving production flexibility.

In terms of the integration of artificial intelligence and robots, AI technology is being widely used in robot control systems to improve the autonomy and adaptability of robots. For example, SoftBank’s Pepper robot uses AI technology to achieve natural language interaction and emotion recognition. In addition, Internet of Things (IoT) integration is also an important trend. By integrating robots with IoT systems, real-time data collection and analysis are achieved, improving production efficiency and predictive maintenance capabilities. In order to improve the flexibility and applicability of robots, lightweight and modular design have also become important trends, which make robots easier to install, maintain and upgrade.

2.5 Case analysis

FANUC is a global leader in industrial robots and CNC systems. The company is world-famous for its yellow robots and dominates fields such as car manufacturing and electronics assembly. FANUC took the lead in launching the “FIELD system” (FANUC Intelligent Edge Link and Drive system) with AI functions. This is an open platform that allows various devices and systems to be interconnected to realize smart factories. In fiscal 2020, despite the impact of the epidemic, Fanuc’s robot business still achieved sales of 524 billion yen. The company is increasing its investment in collaborative robots and AI technology to respond to market demand for smarter and more flexible robots.

Yaskawa is another Japanese robotics giant with a strong reputation for industrial robots and motion control systems. The Motoman-HC series of collaborative robots launched by Yaskawa Electric integrates advanced torque sensors and can safely collaborate with human workers. In fiscal year 2020, Yaskawa Electric’s robot business sales reached 174.6 billion yen. Although it declined from the previous year, it still maintained its leading position in the industry. The company is actively expanding the service robot market and strengthening its presence in the fields of medical and rehabilitation robots.

The cases of these two companies fully demonstrate the technical strength and innovation capabilities of the Japanese robot industry. They not only maintain the lead in the traditional industrial robot field, but also actively embrace new technologies and open up new markets, reflecting the vitality and potential of the Japanese robot industry. In general, the Japanese robot industry maintains its leading position in global competition with its profound technological accumulation, strong government support and continuous investment in innovation. With the integration of emerging technologies such as AI and IoT, and the expansion into new fields such as services and medical care, the Japanese robot industry is expected to continue to lead global development trends in the future.

Artificial Intelligence Industry

Japan’s artificial intelligence industry is in a stage of rapid development. As one of the country’s strategic emerging industries, it has received great attention from the government and enterprises. In the context of increasingly fierce global AI competition, Japan is trying to catch up with leading countries such as the United States and China and strive to establish an advantageous position in specific fields.

3.1 Industry overview

The market size of Japan’s artificial intelligence industry is showing rapid growth. According to a survey report by Fuji Economic, the Japanese AI market reached 1.1 trillion yen in 2020 and is expected to grow to 3.7 trillion yen by 2025, with an average annual compound growth rate of approximately 27.4%. This growth is mainly driven by factors such as enterprise digital transformation needs, government policy support, and the COVID-19 epidemic accelerating the digitalization process.

In terms of application fields, the Japanese AI industry shows a diversified development trend. The financial industry is a pioneer in AI applications, mainly used in risk assessment, algorithmic trading and customer service. For example, Mitsubishi UFJ Bank used AI technology to develop an intelligent customer service system, which greatly improved customer service efficiency. The medical and health field is another key application area. AI technology plays an increasingly important role in medical image analysis, drug research and development, and personalized medicine. As Japan’s traditional advantageous industry, manufacturing is also actively introducing AI technology, which is mainly used in production line optimization, predictive maintenance and quality control. In addition, retail, transportation, education and other fields have gradually increased the application of AI technology.

3.2 Policy support

The Japanese government attaches great importance to the development of the artificial intelligence industry and has introduced a series of supporting policies. In March 2017, the Japanese government released the “Artificial Intelligence Technology Strategy”, which is Japan’s first national AI strategy. The strategy proposes a roadmap to promote the development of AI in three stages: the first stage (before 2020) focuses on the development of data-driven AI and its application in various fields; the second stage (2025-2030) realizes the integration of AI and human beings. Collaborate to achieve AI assistance in public services in multiple fields; in the third stage (after 2030), establish a human-centered AI ecosystem to achieve a virtuous cycle of economic development and solving social problems.

In terms of R&D financial support, the Japanese government has established a number of special funds. For example, the AIP (artificial intelligence project) center of RIKEN receives about 10 billion yen in research funding every year. In addition, the Ministry of Economy, Trade and Industry has also established the “Future Investment Promotion Fund” to focus on supporting the research, development and commercialization of cutting-edge technologies such as AI.

In terms of talent training, the Japanese government has launched the “AI Talent Cultivation Acceleration Plan” with the goal of cultivating approximately 250,000 AI professionals by 2025. The plan includes measures such as establishing AI professional courses in universities, strengthening industry-university cooperation, and attracting high-end overseas AI talents. Top universities such as the University of Tokyo and Kyoto University have also established AI research institutes to increase their efforts in cultivating AI talents.

3.3 Market structure

The Japanese AI market presents a diversified structure, including large technology companies, professional AI companies, research institutions and start-up companies and other types of participants. Among large enterprises, traditional IT giants such as Fujitsu, NEC and Hitachi are actively deploying AI business. Professional AI companies such as Preferred Networks and ABEJA are also growing rapidly. In terms of research institutions, institutions such as the AIP Center of the Institute of Physics and Chemistry and the Artificial Intelligence Research Center of the Institute of Advanced Industrial Technology play an important role in basic research and applied R&D.

In terms of industry-university-research cooperation model, Japan has formed a relatively complete system. For example, the “AI Research and Development Network” led by the Ministry of Economy, Trade and Industry brings together industry, academia, and government departments to jointly promote the research, development and application of AI technology. University science parks have also become an important platform for industry-university-research cooperation. For example, the AI ​​Research Center at the University of Tokyo Kashiwanoha International Campus has attracted many companies to settle in, forming an innovation ecosystem integrating industry, academia, and research. In addition, Japan also encourages transnational cooperation, such as the Japan-France AI joint laboratory jointly established by the Institute of Physical and Chemical Research and the French National Center for Scientific Research (CNRS), which promotes international technical exchanges and cooperation.

3.4 Technology trends

The technological development of Japan’s AI industry shows a diversified trend, mainly focusing on areas such as deep learning, natural language processing and computer vision.

When it comes to deep learning, Japanese research institutions and companies are working to improve the efficiency and interpretability of models. For example, the “dynamic neural network” technology developed by the Institute of Physical and Chemistry can dynamically adjust the network structure based on input data, greatly improving the efficiency and flexibility of the model. Preferred Networks has made significant progress in the field of reinforcement learning, and its AlphaGo-level Go AI “DeepZenGo” has attracted widespread attention.

Natural language processing is another key area of ​​Japanese AI research. Japan faces unique challenges and opportunities in this area due to the complexity of the Japanese language. The Japanese pre-trained language model “T5” developed by NTT’s Institute of Basic Communication Science performs well in multiple natural language processing tasks. In addition, Japanese companies are also actively developing NLP applications for specific fields, such as the legal document analysis AI system developed by Retrieva, which has greatly improved the efficiency of legal work.

In the field of computer vision, Japan, relying on its traditional advantages in optics and image processing, is promoting the development of this technology to higher precision and wider applications. The AI ​​image sensor developed by Sony integrates AI processing functions directly into the image sensor, greatly improving the speed and efficiency of image recognition. In addition, Japanese companies have also made significant progress in subdivisions such as 3D vision and action recognition.

3.5 Case analysis

As one of Japan’s largest technology investment companies, SoftBank’s layout in the field of AI can be described as comprehensive and in-depth. The company not only invests in many of the world’s leading AI companies through its Vision Fund, but also actively develops its own AI technology and products. SoftBank’s AI strategy mainly focuses on three directions: intelligent robots, AI platforms and AI applications.

In terms of intelligent robots, SoftBank’s Pepper robot is its most well-known product. Pepper uses advanced natural language processing and emotion recognition technology to enable natural interaction with humans and is widely used in retail, education, medical and other fields. In 2020, SoftBank launched a new generation of AI robot “Whiz”, mainly used for commercial cleaning, demonstrating the company’s ability to combine AI technology with practical applications.

In terms of AI platform, SoftBank has developed the “SoftBank AI” platform to provide enterprises with tools and services for AI development and application. The platform integrates multiple AI technologies such as machine learning, natural language processing, and computer vision, allowing enterprises to quickly develop and deploy AI applications.

In terms of AI applications, SoftBank is actively applying AI technology to its communications and Internet businesses. For example, the company uses AI technology to optimize network operations and improve network quality and user experience. In addition, SoftBank is also exploring the application of AI in finance, medical care, smart cities and other fields.

Preferred Networks is one of the most successful AI startups in Japan, focusing on the development and application of deep learning technology. The company was founded in 2014 and has grown into a leading company in Japan’s AI field in just a few years, with a valuation of more than US$2 billion.

The core technology of Preferred Networks is its self-developed deep learning framework “Chainer”, which is known for its flexibility and efficiency and is widely used in academic research and industrial applications. Based on Chainer, the company has developed a series of innovative AI solutions covering manufacturing, medical, transportation and other fields.

In the manufacturing field, Preferred Networks cooperated with Toyota Motor to develop an industrial robot control system based on deep reinforcement learning, which greatly improved the flexibility and efficiency of the production line. In the medical field, the company uses deep learning technology to develop high-precision cancer diagnosis systems and has achieved remarkable results in the early detection of lung cancer and breast cancer.

Preferred Networks also actively participates in open source communities to promote the popularization and development of AI technology. The company regularly holds deep learning training courses and has established research cooperation relationships with many universities, making important contributions to the cultivation of Japanese AI talents.

The cases of these two companies fully demonstrate the innovative vitality and diversified development trend of the Japanese AI industry. As a large technology company, SoftBank is promoting the application and commercialization of AI technology in multiple fields through a comprehensive AI strategic layout. Preferred Networks represents the innovative capabilities of Japan’s emerging AI companies. It has established strong competitive advantages in specific fields by deeply cultivating core technologies. This pattern of coexistence of large enterprises and innovative enterprises has provided strong impetus for the sustainable development of Japan’s AI industry.

Although the Japanese AI industry still faces challenges in global competition, with its deep technological accumulation, strong government support, and innovative ecosystem that closely cooperates with industry, academia, and research institutes, it is making breakthroughs in multiple subdivisions and showing strong development potential. With the deep integration of AI technology into Japan’s traditional advantageous industries and its widespread application in solving social problems, Japan’s AI industry is expected to occupy a unique and important position in the global AI landscape.

Semiconductor Industry

The Japanese semiconductor industry plays a key role in the global semiconductor supply chain. Although it experienced a recession in the late 1990s, it has re-established its important position in specific fields through technological innovation and industrial structural adjustment. The development of Japan’s semiconductor industry is not only of great significance to the domestic economy, but also plays a decisive role in the development of the global semiconductor industry.

4.1 Industry overview

Although the market size of Japan’s semiconductor industry is not as large as that of the world’s leading countries, the United States, South Korea and Taiwan, it still maintains steady growth. According to data from the Japan Electronics and Information Technology Industry Association (JEITA), the market size of the Japanese semiconductor industry in 2020 is approximately 3.8 trillion yen, and is expected to grow to approximately 4.5 trillion yen by 2025. Japan occupies about 10% of the global semiconductor market, mainly focusing on specific high value-added fields.

Japan’s semiconductor industry chain presents unique structural characteristics. In the design process, Japanese companies mainly focus on integrated circuit design in specific application areas, such as automotive electronics, industrial control and image processing. In the manufacturing sector, although Japanese companies lag behind companies such as TSMC in the manufacturing of advanced logic chips, they maintain a leading position in specialty processes such as power semiconductors and image sensors. In the packaging and testing process, Japanese companies rely on precision manufacturing technology to occupy an important position in the advanced packaging field. It is worth noting that Japan’s advantages in the field of semiconductor materials and equipment are particularly prominent. In key materials such as photoresist, silicon wafers, targets, etc., as well as in the field of semiconductor manufacturing equipment, Japanese companies occupy a dominant position in the global market.

4.2 Policy support

The Japanese government recognizes the importance of the semiconductor industry to national economic security and issued the “Basic Guidelines for the Revitalization of the Semiconductor Industry” in June 2021. The core goal of this policy is to strengthen Japan’s position in the semiconductor industry chain and ensure the security of key technologies and supply chains. The government plans to invest approximately 1 trillion yen in the next few years to support the construction of semiconductor R&D and production facilities, while strengthening education in semiconductor-related subjects and cultivating high-quality technical talents.

In terms of international cooperation, Japan actively participates in the US-led “Chip 4 Alliance” and jointly builds a semiconductor supply chain security system with the United States, South Korea and Taiwan. At the same time, Japan is also strengthening semiconductor cooperation with the EU, such as supporting the implementation of the European Chips Act. In terms of technological protection measures, the Japanese government has strengthened its control over the export of semiconductor-related technologies, especially sensitive technologies that may affect national security. At the same time, Japan is also promoting industry-university-research cooperation and establishing a national semiconductor research center to ensure the independent control of core technologies.

4.3 Market structure

The Japanese semiconductor market structure shows diversified characteristics, with major companies maintaining competitiveness in their respective areas of expertise. Sony is the global leader in image sensors, with a market share of over 50%. Renesas Electronics is a major supplier of automotive electronics and industrial control chips. ROHM maintains its leading position in power semiconductors and analog chips. Toshiba occupies an important position in the field of memory chips and discrete devices. As a global leader in the field of semiconductor manufacturing equipment, Tokyo Electronics occupies important shares in multiple market segments.

In the global semiconductor industry, Japanese companies have maintained influence mainly by focusing on specific areas, providing key materials and equipment, and participating in global cooperation. For example, Sony’s leading position in image sensors, Renesas’s leading position in automotive electronics and other fields, Shin-Etsu Chemical and JSR’s important positions in the field of semiconductor materials, Tokyo Electronics and Nikon’s important positions in the equipment field all reflect the unique advantages of Japanese companies. At the same time, Japanese companies are also actively developing technical cooperation and foundry relationships with global leading companies such as TSMC and Intel to maintain their important position in the global semiconductor industry chain.

4.4 Technology trends

In terms of advanced manufacturing processes, although Japanese companies lag behind companies such as TSMC and Samsung in the most cutting-edge logic chip manufacturing processes, they are still working hard to narrow the gap. Renesas Electronics is developing 7nm and below process technology and is cooperating with TSMC for advanced process production. The Japanese government is also supporting the construction of advanced semiconductor manufacturing bases, such as supporting TSMC to build a 28nm process wafer fab in Kumamoto Prefecture.

Japan maintains its leading edge in the field of specialty crafts. In terms of power semiconductors, Japanese companies are leading the world in the development and application of third-generation semiconductor materials such as silicon carbide (SiC) and gallium nitride (GaN). In the field of image sensors, Sony has obvious technical advantages and continues to launch new products with high performance and low power consumption. In the field of analog chips, Japanese companies maintain their advantages in high-precision and high-reliability products. In terms of storage technology, Toshiba continues to innovate in 3D NAND flash memory technology to promote the development of large-capacity storage solutions.

4.5 Case analysis

Tokyo Electron is one of the world’s leading suppliers of semiconductor manufacturing equipment, occupying important market shares in multiple fields such as glue development equipment, etching equipment and thin film deposition equipment. The company’s success is mainly due to continuous technological innovation, close cooperation with customers, globalization strategy and diversified product lines. Tokyo Electronics invests a lot of money in research and development every year and continuously introduces new equipment that meets the needs of advanced processes. The company also maintains close cooperation with major wafer fabs around the world to understand customer needs in a timely manner and jointly develop next-generation semiconductor manufacturing solutions.

Sony Semiconductor Solutions is the world’s leading image sensor supplier. Its success can be attributed to technological leadership, accurate market insights, vertically integrated business model and continuous investment. Sony remains a leader in back-illuminated CMOS sensor technology and continues to launch new products with high resolution, high dynamic range and excellent low-light performance. The company accurately grasped the trend of multiple cameras in smartphones and expanded production capacity in a timely manner to meet market demand. At the same time, Sony is also actively exploring emerging application areas such as automobiles, industry, and security, and broadening its business scope.

These two cases fully demonstrate how Japanese semiconductor companies maintain competitive advantages in specific fields through technological innovation, market insights and globalization strategies. The success of Tokyo Electronics and Sony is not only of great significance to the Japanese semiconductor industry, but also has made an important contribution to the development of the global semiconductor industry chain. Although the Japanese semiconductor industry faces challenges from global competitors, it still occupies an important position in the global semiconductor industry chain by continuously focusing on high value-added areas, strengthening innovation capabilities and deepening international cooperation. With the increase in government policy support and the continuous efforts of enterprises themselves, Japan’s semiconductor industry is expected to continue to maintain its unique advantages in the future.

New energy industry

As the world’s leading industrialized country, Japan has always been at the forefront of the world in the development of the new energy industry. Since the oil crisis in the 1970s, Japan has begun to actively promote the transformation of its energy structure and vigorously develop new energy industries. In the context of the global response to climate change and the realization of sustainable development, the development of Japan’s new energy industry is of great significance to national energy security, environmental protection and economic growth.

5.1 Industry overview

The market scale of Japan’s new energy industry continues to expand, and the energy structure continues to be optimized. According to data from Japan’s Ministry of Economy, Trade and Industry, Japan’s renewable energy power generation accounted for about 20% of total power generation in 2020, and is expected to increase to 36-38% by 2030. Solar energy, wind energy, geothermal energy, biomass energy and hydrogen energy are the new energy types that Japan focuses on developing.

Solar power generation is the main force of Japan’s new energy industry. As of 2021, Japan’s installed solar power generation capacity exceeds 70GW, ranking third in the world. Japan’s unique geographical conditions and technological advantages make it outstanding in subdivisions such as rooftop photovoltaics and floating photovoltaics. Although wind power generation started late, it is developing rapidly. Japan is vigorously developing offshore wind power and plans to have an installed offshore wind power capacity of 10GW by 2030.

As an important part of Japan’s new energy strategy, hydrogen energy is developing rapidly. The Japanese government has proposed the vision of a “hydrogen energy society” and plans to promote the application of hydrogen energy in various fields such as transportation, industry, and households. In terms of geothermal power generation, Japan occupies an important position in the global geothermal power generation market with its abundant geothermal resources and advanced development technology.

5.2 Policy support

The Japanese government attaches great importance to the development of the new energy industry, and relevant policy support has continued to increase. The “Energy Basic Plan” is the programmatic document of Japan’s energy policy. The latest version (sixth) will be released in October 2021. The plan clearly states that the proportion of renewable energy in the power structure will be 36-38% by 2030, a significant increase from the previous 22-24%. The plan also emphasizes the importance of new energy carriers such as hydrogen energy and ammonia energy, and proposes a goal of hydrogen energy utilization reaching 3 million tons per year by 2030.

In terms of specific policy measures, Japan has implemented a series of renewable energy subsidy policies. Since its implementation in 2012, the fixed electricity price acquisition system (FIT) has greatly promoted the development of renewable energy sources such as solar and wind energy. The Feed-in Premium (FIP) system, which will be implemented in 2022, aims to further improve the market competitiveness of renewable energy. In addition, the Japanese government also supports the development of the new energy industry through tax incentives and low-interest loans.

5.3 Market structure

Japan’s new energy market is characterized by diversification and high competition. In the field of solar energy, traditional electronic giants such as Sharp, Kyocera, and Panasonic occupy an important position. The wind energy field is dominated by local companies such as Japan Wind Development and Eurus Energy, while international giants such as Vestas and Siemens Gamesa are also involved. In the field of hydrogen energy, automobile manufacturers such as Toyota and Honda, as well as comprehensive enterprises such as Toshiba and Mitsubishi Heavy Industries, are actively deploying.

Japanese new energy companies occupy a dominant position in the domestic market and are also actively expanding into international markets. For example, Sharp’s solar cell products are sold to many countries and regions around the world. Toyota’s hydrogen fuel cell technology is not only used in its own products, but also exported to other automakers through technology licensing. In terms of overseas investment, Japanese companies actively participate in the development of global renewable energy projects, such as SoftBank Group’s large-scale solar power projects in India, Saudi Arabia and other places.

5.4 Technology Trends

The technological innovation of Japan’s new energy industry is mainly concentrated in the fields of high-efficiency solar cells, hydrogen energy technology and smart grids. In terms of solar cell technology, Japanese companies are committed to developing a new generation of batteries that are more efficient and lower cost. For example, the efficiency of the heterojunction (HJT) solar cell developed by Kaneka has exceeded 26%, which is close to the theoretical limit of silicon-based cells. Perovskite solar cells are also a focus of Japanese research institutions and companies. The University of Tokyo and Panasonic are promoting the commercialization of this technology.

Hydrogen energy technology is another focus of Japan’s new energy field. Japan has conducted in-depth research on the entire industry chain technology of hydrogen fuel cells, hydrogen energy production, storage and transportation. For example, Toyota and Honda are global leaders in proton exchange membrane fuel cell (PEMFC) technology. In terms of hydrogen energy production, Japan is actively developing an international hydrogen energy supply chain, such as the Australian liquefied hydrogen transportation project led by Kawasaki Heavy Industries.

Smart grid technology is the key to supporting the large-scale application of new energy in Japan. Japanese electric power companies and electronics companies are collaborating to develop advanced grid management systems to address the challenges posed by the integration of renewable energy. For example, Tokyo Electric Power Co. (TEPCO) is promoting smart meters and demand response systems for households to improve the flexibility and reliability of the grid. At the same time, Japan is also exploring the application of blockchain technology to distributed energy transactions to achieve more efficient energy management.

5.5 Case analysis

As a pioneer in Japan’s solar energy industry, Sharp’s development history represents the rise, fall and rebirth of Japan’s photovoltaic industry. Sharp began developing solar cells as early as 1959 and became the world’s largest solar cell manufacturer in the 1980s. However, Sharp was once in trouble due to intensifying competition in the global photovoltaic market and its own operating problems. After being acquired by Hon Hai Group in 2016, Sharp achieved business restructuring and technological innovation, re-establishing its leading position in the field of high-efficiency solar cells. Currently, Sharp is committed to developing a new generation of photovoltaic technologies, such as perovskite-silicon stacked cells, which are expected to further improve photoelectric conversion efficiency. Sharp’s case reflects the efforts of Japanese photovoltaic companies to achieve transformation through technological innovation and strategic adjustment in the face of global competition.

Toyota’s achievements in the field of hydrogen fuel cell technology demonstrate how the Japanese automobile industry leads innovation in new energy technologies. Toyota has been developing hydrogen fuel cell vehicles since the 1990s, and launched the Mirai, the world’s first mass-produced hydrogen fuel cell vehicle, in 2014. Toyota’s success stems from its continuous innovation in key technologies such as fuel cell stacks and high-pressure hydrogen storage tanks, as well as its comprehensive layout of the hydrogen energy industry ecosystem. In addition to developing hydrogen fuel cell vehicles, Toyota is also actively involved in the construction of hydrogen energy infrastructure and promotes the expansion of hydrogen refueling station networks. In addition, Toyota has also expanded the application of fuel cell technology to commercial vehicles, stationary power generation and other fields, demonstrating the broad application prospects of hydrogen energy technology. Toyota’s case not only reflects the strength of Japanese companies in new energy technology innovation, but also reflects Japan’s national strategy to promote the construction of a hydrogen energy society.

Japan’s new energy industry occupies an important position in the global new energy field by relying on government policy support, corporate technological innovation and market development. Despite facing fierce competition from China, Europe and the United States and other countries and regions, Japan still maintains technological advantages in solar energy, hydrogen energy and other subdivisions. In the future, with the deepening of energy transformation, Japan’s new energy industry is expected to continue to play an important role and contribute to global sustainable development.

Cross-field collaborative development

Japanese industry is undergoing a profound transformation, characterized by the acceleration of cross-sector collaborative development. This trend is not only reflected in the integration of traditional industries, but also in the cross-innovation in cutting-edge technology fields. The combination of artificial intelligence (AI) and robotics is a typical example. As a major country in robots, Japan has been exploring how to integrate AI technology into robot development to improve the intelligence level of robots. Automobile giants such as Toyota and Honda are developing humanoid robots with a high degree of autonomy and adaptability. These robots can not only complete complex physical tasks, but also achieve natural language interaction and environmental perception through AI. This integration not only promotes the advancement of robotics technology, but also finds new application scenarios for AI technology, promoting the common development of the two fields.

The combination of semiconductor and new energy industries is another cross-field synergy trend worthy of attention. With the development of new energy technologies, there is an increasing demand for high-performance, low-power semiconductor products. Japanese companies are actively developing specialized chips for solar inverters, electric vehicles and smart grids. For example, the microcontroller for solar inverters launched by Renesas Electronics improves energy conversion efficiency through optimized design. At the same time, the development of the new energy industry has also provided new growth points for the semiconductor industry and promoted innovation in power semiconductors, analog chips and other subdivisions. This collaboration not only improves the performance and efficiency of new energy systems, but also expands the application scope of the semiconductor industry.

In the context of this cross-field collaborative development, the construction of an innovation ecosystem has become particularly important. Japan is working hard to create an environment that promotes cross-sector collaboration and innovation. Governments, businesses, universities and research institutions are building closer partnerships to facilitate the flow of knowledge and technology. For example, the Strategic Innovation and Creation Plan (SIP) launched by the Japan Science and Technology Agency (JST) is an important measure aimed at promoting collaborative innovation among industry, academia, and research institutes. The plan selects a number of cross-field topics including autonomous driving, hydrogen energy society, etc., and encourages experts and institutions with different backgrounds to jointly tackle key issues.

Japan is also actively cultivating a culture of innovation and entrepreneurship and encouraging the development of start-ups across fields. Universities such as the University of Tokyo and Kyoto University have established entrepreneurial incubators to provide support for cross-field innovative projects. At the same time, large enterprises are also cooperating with start-ups and research institutions through corporate venture capital, open innovation platforms, etc. to accelerate the commercialization process of new technologies. However, Japan’s traditional corporate culture and education system restrict the training and flow of cross-field talents to some extent. To this end, Japan is promoting education reform, increasing the proportion of STEM (science, technology, engineering, mathematics) education and encouraging interdisciplinary learning. At the enterprise level, we are also trying to break down departmental barriers and establish a more flexible organizational structure to adapt to the needs of cross-field innovation.

In general, cross-field collaborative development is becoming a new driving force for Japanese industrial innovation. By integrating technologies and knowledge from different fields, Japanese companies are expected to remain competitive in emerging industries. The improvement of the innovation ecosystem will provide important support for this cross-field collaboration and help Japan occupy a favorable position in global industrial transformation. In the future, how to balance specialization and cross-field innovation, and how to embrace new industrial forms while maintaining traditional advantages, will be important challenges and opportunities for Japan.

Suggestions for Japanese companies going overseas and starting businesses in Japan

For Japanese companies aspiring to develop in the global market and foreign companies starting up in Japan, formulating an appropriate market entry strategy is crucial. When Japanese companies expand overseas, they need to fully consider the cultural characteristics, consumption habits and regulatory environment of the target market. For example, when entering emerging markets, you can consider joint ventures or acquisitions of local companies to quickly gain market share and localized knowledge. At the same time, Japanese companies should give full play to their advantages in quality control and customer service and win the trust of consumers with differentiated strategies. For foreign companies starting up in Japan, they need to pay attention to the high maturity of the Japanese market and the pickiness of consumers. It is recommended to start with a small-scale pilot and gradually build brand awareness by working with local distributors or retailers. In addition, taking advantage of the various support policies provided by the Japanese government for foreign enterprises, such as the special zone system and subsidy programs, can also lower the threshold for market entry.

Technical cooperation is an important way for enterprises to achieve innovation and enhance competitiveness. When Japanese companies seek overseas technology cooperation, they can focus on emerging innovation centers such as Silicon Valley, Israel or Shenzhen. Cutting-edge technologies and innovative ideas can be quickly acquired by setting up R&D centers or cooperating with local start-ups. For foreign companies seeking technological cooperation in Japan, Japan’s industry-university-research cooperation system provides good opportunities. You can consider establishing joint laboratories with Japanese universities or research institutions and participating in industry-university cooperation projects supported by the Japanese government. At the same time, large Japanese companies generally have a need for open innovation, and foreign companies can establish technical cooperation relationships with these companies by providing innovative solutions. It is worth noting that when conducting technical cooperation, both parties should clarify the ownership and use rules of intellectual property rights to avoid potential disputes.

Talent acquisition and training are fundamental to enterprise development. When Japanese companies expand overseas, they often face the problem of a shortage of localized talents. To this end, consider establishing partnerships with local universities to attract outstanding graduates through internship programs and campus recruitment. At the same time, attention should be paid to cross-cultural management training to help Japanese dispatched employees better adapt to overseas work environments. For foreign companies developing in Japan, they need to pay attention to Japan’s unique employment culture and talent market characteristics. Talents can be recruited by participating in job fairs and cooperating with headhunting companies. In addition, providing competitive salary packages and career development opportunities is crucial to attracting and retaining high-quality Japanese talents. In terms of talent training, both Japanese and foreign companies should pay attention to establishing a complete internal training system to encourage employees to continue learning and skill improvement.

Intellectual property protection is a link that cannot be ignored in the process of enterprise innovation and internationalization. When Japanese companies expand overseas, they should prepare their intellectual property layout in advance, including patent applications, trademark registrations, etc. Especially in markets where intellectual property protection is relatively weak, active protection measures must be taken, such as cooperating with local law firms to establish an intellectual property monitoring and rights protection mechanism. For foreign companies developing in Japan, they need to fully understand Japan’s strict intellectual property protection system. Japan’s patent application procedures are complicated and the review cycle is long. It is recommended to start the relevant procedures as early as possible and consider hiring a professional intellectual property agency to assist. At the same time, we must also pay attention to respecting the intellectual property rights of Japanese companies to avoid inadvertent infringement. When conducting technical cooperation or business negotiations, signing a confidentiality agreement is a necessary measure to protect the intellectual property rights of both parties.

Whether Japanese companies go global or foreign companies enter the Japanese market, they need to be fully prepared in terms of market strategy, technical cooperation, talent management and intellectual property protection. Only by in-depth understanding of the characteristics of the target market, flexible adjustment of strategies, and establishment of effective cooperative relationships can enterprises achieve success in cross-border operations. At the same time, maintaining an open and learning attitude, continuing to innovate and adapt to changes are also the keys for companies to maintain their advantages in global competition.

Main challenges and future development trends

Japan’s high-tech industry is facing a series of major challenges, the most prominent of which is the aging population. This demographic change not only leads to labor shortages, but also has a profound impact on innovation capabilities and market demand. As the working-age population shrinks, high-tech companies face increasing pressure to recruit and develop talent. At the same time, the increase in the proportion of the elderly population has also promoted the demand for related technologies such as medical health and elderly care services, bringing new development directions to the high-tech industry. In addition, international competition is becoming increasingly fierce, especially the competitive pressure from neighboring countries such as China and South Korea. Japanese companies are facing challenges in their global market share. However, these challenges also breed opportunities. For example, the aging of the population has promoted the development of automation and artificial intelligence technologies, and Japan’s advantages in robotics and intelligent manufacturing are expected to be further strengthened.

Despite the many challenges it faces, the future of Japan’s high-tech industry remains promising. It is foreseeable that Japan will continue to maintain its leading position in certain key areas, such as high-end materials, precision instruments, and industrial robots. At the same time, Japanese companies are actively transforming into emerging fields, including clean energy, biotechnology, and quantum computing. This transformation will not only help solve social problems faced by the country, but may also provide new solutions for global scientific and technological innovation. The Japanese government is also actively promoting industrial policy adjustments and encouraging open innovation and international cooperation, which will help enhance the global competitiveness of Japan’s high-tech industry.

The development of Japan’s high-tech industry will have an important impact on the global science and technology landscape. On the one hand, Japan’s continued innovation in some cutting-edge fields may lead the direction of global technological development. For example, in fields such as hydrogen energy and new generation battery technology, Japan’s research and development results are expected to promote the transformation of the global energy structure. On the other hand, Japanese companies are strengthening their ties with global innovation centers. This cross-border cooperation will promote technological exchanges and innovation diffusion on a global scale. At the same time, Japan’s accumulated experience and technology in dealing with social challenges such as population aging may also provide reference for other countries facing similar problems.

In general, although Japan’s high-tech industry faces many challenges, through active responses and strategic adjustments, it is still expected to play an important role in global scientific and technological innovation. In the future, the development of Japan’s high-tech industry will continue to deepen global scientific and technological cooperation, promote cross-field innovation, and make unique contributions to solving global problems. This process will not only reshape Japan’s own industrial structure, but will also have a profound impact on the global high-tech industry pattern.

appendix

List of relevant policy documents

Focused on a series of strategic plans and laws and regulations issued by the Japanese government in recent years. Among them, the “Basic Science and Technology Plan” is the most core policy document. This plan is formulated every five years and provides an overall framework and direction guidance for Japan’s scientific and technological innovation development. In particular, we analyzed the fifth (2016-2020) and sixth (2021-2025) Science and Technology Basic Plans. These two documents elaborate on Japan’s development in cutting-edge fields such as artificial intelligence, quantum technology, and life sciences. strategy. In addition, special policy documents such as the “Society 5.0” concept document, “AI Strategy 2019”, and “Quantum Technology Innovation Strategy” also provide important references for us to understand Japan’s layout in specific high-tech fields. In terms of industrial policy, documents such as the “Future Investment Strategy” and “New Industrial Structure Vision” issued by the Ministry of Economy, Trade and Industry clarify the Japanese government’s support measures and future plans for the development of high-tech industries. These policy documents not only reflect the strategic thinking of the Japanese government, but also provide an important basis for us to analyze the development direction of Japan’s high-tech industry.

Description of data sources and research methods

In terms of data sources, we make comprehensive use of official statistics, industry reports and academic research results. The “Science and Technology Research Survey Report” released by the Statistics Bureau of the Ministry of Internal Affairs and Communications of Japan is our main source of basic data such as R&D investment and patent applications. The Ministry of Economy, Trade and Industry’s “Industrial Statistical Survey” and “Specified Service Industry Survey” provide detailed data for us to understand the development status of high-tech manufacturing and service industries. For international comparison, we refer to the Science and Technology Innovation Database of the Organization for Economic Cooperation and Development (OECD) and the Global Innovation Index report of the World Intellectual Property Organization (WIPO). In addition, industry reports from the Japan External Trade Organization (JETRO) and market analysis reports issued by major consulting companies also provide us with valuable industry insights.

In terms of research methods, we adopted a method that combines quantitative analysis with qualitative research. Through time series analysis and horizontal comparison of a large number of statistical data, we depict the overall trend and international status of Japan’s high-tech industry development. At the same time, we also conducted multiple case studies, conducted in-depth analysis of representative companies and innovation projects, and used concrete examples to illustrate the characteristics and innovation models of Japan’s high-tech industry. In addition, we also interviewed a number of industry experts and scholars to obtain first-hand insights and predictions. This information plays an important supplementary role in our understanding of the internal logic and future direction of industrial development.

It should be noted that due to the rapid development of the high-tech industry and differences in data statistical standards, some of the latest data may be lagging or incomplete. We have used the most recent available data in our reports where possible and stated the currency of the data where necessary. At the same time, we also recommend that readers make comprehensive judgments based on the latest official statistics and industry trends when citing data in this report.

Through the interpretation of these policy documents, the integration of multiple data sources, and rigorous research methods, we strive to present readers with a comprehensive, objective, and in-depth picture of the development of Japan’s high-tech industry. This not only helps to understand Japan’s position and role in global technological innovation, but also provides a useful reference for other countries and regions when formulating technological innovation strategies.