Japan accounts for 52% of global industrial robot supply - IFR
According to a recent report from the International Federation of Robotics (IFR), Japan is the world leader in the manufacture of industrial robots, accounting for 52% of global supply.
Results from the IFR, released ahead of the International Robotic Exhibition (iREX) held in Tokyo, show that the production capacity of Japanese suppliers reached 153,000 units in 2016 - the highest level ever recorded.
Of these, 116,000 were exported for a total value of approximately $2.7bn, with North America, China, Korea and Europe being the export destinations.
“Japan is a highly robotised country where even robots are assembled by robots”, said Joe Gemma, President of the IFR. “The statistics show that automation strongly boosts exports and domestic investments as well - robot sales in Japan increased by 10 percent to about 39,000 units in 2016 - reaching the highest level in the last ten years.”
As a whole, the domestic Japanese industry has maintained a compound annual growth rate (CAGR) of 7% through the period 2011 to 2016, with industrial robots having become increasingly popular within the automotive, handling operations, welding and electronics sectors.
Looking forward, the IFR gives its outlook for 2020, estimating that there will be an increase of 10% in domestic installations this year alone, with a further annual increase of 5% between 2018 and 2020.
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.