Japanese tech companies are defenseless, claims a top official

Japan is susceptible to foreign activist investors buying sensitive tech companies such as Toshiba, as local shareholders do not step up in the time of hardships.

Akira Amari, a powerful picture in the ruling Liberal Democratic Party that leads its semiconductor strategy group, said; Japan’s private division is “unaware” of its significance to national security.

Amari made the statements as Japan analyzed a tightening of export controls and laws on foreign investment amidst rising tensions between the US and China, over semiconductor technology.

Japanese tech companies are defenseless

Last month, activists expelled the chairman of Toshiba’s board of directors, displaying their power to control one of Japan’s most sensitive tech companies.

The business community said Toshiba is so valuable, but only the activists stepped forward with the money.

Management risks related to Toshiba including – past accounting infamy, fictitious contracts booked at its subsidiary, and recent suspicions cast by a leading shareholder on its administrative strategy. All of that contributes to the discrepancy as well.

Japanese tech companies reign:

In the late 1980s, Japan’s chip industry surpassed the United States to become the largest industry in the world. But it suffers from a sharp decline. Except for Kioxia and Sony, which bag a large market share in flash memory chips.

Read more: Global chips shortage plunges The UK’s car sales

Amari said Japan risks plummeting irrevocably behind in semiconductor technology unless it works more closely with the US, to drive back the warnings from China.

America is number one and Japan is number three in terms of economic strength. If, the number one and number three must have a strategic coalition to compete with the number two nation.

Japan wants to work together with the Taiwanese company to help its semiconductor manufacturers stay competitive as chip demand grows with; 5G infrastructure, self-reliant driving technology, data centers, and artificial intelligence.

Japan must spend at least a trillion yen (about $9 billion) in the current fiscal year and trillions more in years to come to prevent the nation’s vital semiconductor industry from tumbling further behind.

Related articles

Japan to release Fukushima’s contaminated water into the ocean

Japan's new PM announced that Tokyo will go ahead with the plan to dump more than 1,000,000 tons of contaminated water from the Fukushima nuclear power plant into the Pacific Sea. Kishida, who made...

Remote Access Tools Gets a Huge Success in Japan

Remote access tools provide freedom for users to work from anywhere. For years people are trying to operate computers and remote access tools. So that workers can regulate their computers outside work. Japan has been...

Island Dispute between China-Japan Continues

Island Dispute between Japan and China has been going on since 1971. The island dispute of Senkaku also known as Diaoyu Island ownership is the reason for the fight between both countries. According to the reports,...

Health Promotion Insurance with Wearable Devices in Japan

Health Promotion Insurance has an unusual type of insurance which includes wearable devices. The policyholders can receive several benefits and premium discounts by just taking care of their bodies. It includes taking care of their health...

FIFA Club World Cup is in Danger of Postponement

FIFA Club World Cup 2021 was all set to start in December. FIFA is in search of a new venue as Japan confirms the withdrawal from hosting the FIFA Club World Cup 2021. Japan recently...

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here