AVEVA to purchase OSIsoft for US$5bn to scale digitalisation
Over the past few years, industrial companies have incorporated more software into their manufacturing processes to reduce costs and improve their supply chains, benefiting firms such as AVEVA.
As a result of the acquisition, AVEVA and OSIsoft will together help customers in industrial and essential organisations to accelerate their digital transformation strategies by driving greater efficiency, providing lower costs, and offering deeper data-driven insights to create business resilience.
Both AVEVA and OSIsoft can provide a full range of end-to-end solutions that cover span edge, plant and enterprise deployments. With more than 93 years of operational expertise and experience, the organisations share a history of rapidly changing and evolving needs of their industrial customers, built on a foundation of customer centricity and world-class talent.
Following the collaboration, AVEVA and OSIsoft can further deliver on their sustainability goals, driving significant benefits and value for their customers. With a broader, deeper scale and scope to lead the digital transformation of the industrial sector, the combined firm can accelerate greater sustainable efficiencies for many diverse essential industries, such as consumer packaged goods (CPG), pharmaceutical, water and wastewater, and utilities.
“Combining AVEVA and OSIsoft is yet another significant milestone in our journey to achieving the ambitious growth goals that we have set,” commented Craig Hayman, Chief Executive, AVEVA. “This will not only help us serve existing customers better but also open the flood gates to new opportunities which will accelerate the delivery of our digitisation vision. Data has been enabling organizations to more effectively determine the cause of problems by allowing them to visualise what is happening in different locations, departments and systems. This agreement will enable our customers to improve business processes as well as eliminate inefficiencies.”
The deal will see AVEVA solidify its position as a global leader in engineering and industrial software and is expected to close at the end of the year.
Japan Seeks to Revive Stalled Semiconductor Industry
Post-pandemic, Japan has seen the consequences of relying solely on foreign imports for its semiconductors. Over 64.2% of its chips are usually imported from South Korea and Taiwan, leaving the country dependent on its neighbours. Industries from auto manufacturers to consumer electronics firms wait for chips, to no avail. But now, the Japanese government looks likely to put real funding behind its semiconductor industry, with top officials emphasising their support.
Domestic supply chains have never been more important. Rather than remain tied to international shipping routes during shortages and delays, governments are doing everything in their power to develop local lines of supply. But the question remains: can Japan pull it off?
How Will Japan Pay For It?
Herein lies our first issue. Japan’s debt has rapidly increased over the past few years, and the semiconductor industry will need roughly a trillion yen—US$9bn—in this fiscal year alone. This cost, however, pales in comparison to what Japan could lose if it fails to keep up with Europe and the US. Both nations have launched aggressive funding measures to revive their local semiconductor industries. And if Japan refuses to invest due to its debt, it could slow down progress in fields ranging from artificial intelligence to autonomous driving.
According to Tetsuro Higashi, the former president of Tokyo Electron and Japan’s top government advisor in semiconductor strategy, ‘If we miss this opportunity now, there may not be another one’. Yet one advanced wafer fabrication factory can cost more than US$10bn, and any money poured into the industry will go fast. That’s why Japan, rather than invest trillions and trillions in failing domestic firms, is considering a second option.
What Do They Plan To Do?
Japan now intends to look abroad and convince overseas chip foundries to come to its shores. Its past failures mostly centred on trying to merge domestic firms that were already going through tough times. ‘This sort of made-in-Japan self-reliance approach hasn’t worked out well’, said Kazumi Nishikawa, a director at the Ministry of Economy, Trade, and Industry’s IT division. ‘This time the goal is to offer a strong incentive for an overseas logic foundry to come to Japan’.
As follows, Japan will now reach out to industry partners and leaders in other countries, including the industry heavyweight Taiwan Semiconductor Manufacturing Co. (TSMC), to build Japanese bases. According to the South China Morning Post, the heart of Japan’s mission is a US$337.2mn research and development project in Tsukuba that will involve TSMC and more than 20 Japanese firms. ‘I think we need to cooperate with our overseas counterparts’, said Akira Amari, a senior member of the ruling Liberal Democratic Party. ‘[And] TSMC is the world’s top logic chipmaker’.
Indeed, if that’s Japan’s strategy, the future looks bright. TSMC recently set up a venture near Tokyo to research energy-efficient 3D chips with several Japanese partners. And in the future, the multinational chipmaker may consider expanding its Japanese operations—that is, if government incentives pave the path forward.