We are on the lookout for what stories are making the headlines in Japan. Here are the top five Japan Biz & Tech News items for the month of January 2023.
TSMC considers 2nd Japan chip plant
The world’s largest and most important chip manufacturer is rumored to be considering building a second manufacturing facility in Japan. The first, which is currently under construction in Kikuyo city, Kumamoto prefecture, is a joint partnership with Sony and is due to be completed by late 2024. The benefits are already being felt in Kumamoto, as land prices have increased, and investment in local infrastructure and services around the plant is bringing life back to the region. Some 7000 more jobs are expected to be created directly related to the plant.
Rumors of a second plant were stirred when TSMC president Wei mentioned in a quarterly earnings presentation that he was considering the idea. A second plant would have obvious positive knock-on effects for Japan. TSMC high-end chips are used in iphones & ipads, as well as other Mac laptops and desktops. The investment by TSMC would be welcome news for Japan’s many chip-related manufacturers, like Kyocera and V Technology, which have been ramping up production and opening their own new facilities, in expectation of future growing demand.
TSMC is currently building plants in Arizona, and is considering another plant to service the auto industry in Europe. One lingering concern simmering in the background though is the US attempts to restrict chip-related technology reaching China. It is continuing to urge and pressure its foreign allies to restrict chip-related technology reaching China, as it is seen as a growing threat to US and global security.
Looking for a job in the Metaverse?
Around 2000 soon-to-be graduating university students took part recently in a job search recruitment event in the Metaverse. Around 180 companies set up virtual booths, so that candidates could learn more about available positions and possible career paths, and take part in online interviews.
Candidates and representatives from the companies involved all used avatars. The platform allowed for candidates to maintain anonymity, and thus feel more comfortable when asking questions about more sensitive topics. Registration was only required if candidates wanted to follow-up with a particular company, or if they wanted to download extra information about certain companies or positions available.
The two companies responsible for organizing the event; job placement firm Neo Career Co, and Metaverse operations and IT firm X Co, both considered the event a great success. It was considered to be the largest event of its kind so far in Japan, and allowed candidates from all over the country, and even from overseas, to conveniently connect with a wide range of companies in Japan. More events of this type are already being planned for the future.
Japan launches intelligence satellite
Japan successfully launched its H-IIA rocket No. 46 from the Tanegashima Space Center, Kagoshima, at 8:50pm on January 26th. Delayed by one day due to bad weather, the rocket was eventually able to deliver its cargo into space without any issues. The rocket was carrying the IGS Rader No. 7 intelligence satellite, which is owned and operated by the Japanese government. The satellite is designed to collect information related to defense and security, and will also be used for crisis management in the case of natural disasters.
Currently 9 Radar satellites are currently operating in space. They are part of the 10-satellite plan that is soon to be fully operational. Radar 7 which was just launched is set to replace Radar 5, which has reached the limit of its 5 years in service.
This launch was the 40th successful launch by the H-IIA rocket, which is operated by Mitsubishi Heavy Industries. The IGS Radar satellites are operated by the Cabinet Satellite Information Center (CSICE), which is part of Japan’s Cabinet Intelligence and Research Office.
Rising energy prices hit ski resorts
Hundreds of ski resorts in Japan are being squeezed by surging energy prices. The costs of running equipment such as snow-making machines, ski lifts and cable cars, and giant snowcats that groom the snow, have doubled over the last 12 months. This means it is no longer profitable to create the artificial snow needed to open the slopes when there is not enough snow, or keep all the ski runs open throughout the season. As a result, many ski resorts are having to shorten their ski season and just wait for real snow to fall. And the number of ski runs that are open during the season have also had to be reduced.
Ski resorts in Japan have already suffered a number of very difficult years financially, as Covid meant foreign tourists were unable to enter the country, and even domestic tourists were discouraged from traveling domestically, meaning many ski resorts are already at breaking point; only now to be hit with rising energy costs. Some slopes have increased the price for lift tickets and others have raised other costs like rental gear, however most feel they can only do this a little, as consumers are not willing to accept large price rises, and will just stay away if prices rise too much.
The rising cost of oil, gas and coal has impacted everyone, as has the official 4% inflation rate that Japan is currently experiencing. However, the ski resorts in the west of the country, which generally have shorter ski seasons, and use more artificial snow, are definitely feeling the pressure more than the larger more well-known ski resorts like Hakuba in the Japan Alps and Niseko in Hokkaido.
KDDI partners with Starlink to use drones for remote deliveries
KDDI, along with a number of other smaller companies like map-maker Zenrin, recently partnered with Starlink to launch a drone delivery network in the mountainous region of Chichibu in Saitama prefecture, just to the west of Tokyo.
The Starlink internet service delivers a stable internet connection regardless of the terrain, which makes access by drone possible. This is making life much easier for the residents of rural and mountainous regions like Chichibu, especially when severe weather events hit, cutting off road access.
It is now possible to provide food, medicine and other emergency supplies to people in regions that would otherwise be cutoff due to earthquakes, landslides and flooding. Without the stable communication environment that Starlink can now deliver by way of its network of low orbit satellites, this service would not be possible.
Currently, the drones in service can carry payloads of up to 5kg, and can travel distances of 3km, however both the range and the lift capacity are expected to continue to improve with further funding and technological advancements.
