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Economic growth for Japan? A New Year 2016 preview

Economic growth for Japan in 2016?

Economic growth: Almost everyone agrees that economic growth is preferred over stagnation and decline. Fiscal policy and printing money unfortunately can’t deliver growth.

  1. Building fresh new successful companies,
  2. returning stagnating or failed established companies back to growth (see: “Speed is like fresh food” by JVC-Kenwood Chairman Kawahara), and
  3. adjusting the structure and business models of existing companies to the rapidly changing and globalizing world (see: “Japanese management – why is it not global?” by Masamoto Yashiro)

deliver growth.

Governments best help economic growth by reducing friction, and by getting out of the way of entrepreneurs building, turning-round, and refocusing companies.

Some required action is counter to intuition: for example, in many cases reducing tax rates increases Government’s tax income, a fact known for many years. Effective education and research are key to create, understand and apply such non-obvious knowledge.

Companies need efficient leadership, leadership needs feedback, wise and diverse oversight by Boards of Directors, who ring alarm bells long before a company hits the rocks, or fades into irrelevance. Corporate governance reform may be the most important component of “Abenomics”. Read a Board Director’s view on Japan’s corporate governance reforms:

Japan’s electrical conglomerates are some of the poster children motivating Japan’s corporate governance reforms. In an interview about Toshiba’s future on BBC-TV a few days ago, I explained that Japan’s electrical conglomerates showed no growth and no profits for about 20 years, and the refocusing Toshiba has announced now should have been done much much earlier, 10-20 years ago (“Speed is like fresh food“). Refocusing Japan’s established corporate giants will release resources for start-ups, spin-outs and growth companies.

Japan can be very good at restructuring and turn-rounds, e.g. see

Happy New Year!

Gerhard Fasol

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Japan electronics industry seen by Freescale-Japan President & “Asian Le Mans Race” at Fuji Speedway

David Uze, President for Japan & Korea of Freescale on Japan electronics industry

Perspectives for electronics industries in Japan


In this newsletter David Uze, President for Japan & Korea of the global semiconductor electronics company Freescale, shares his success story in Japan, and his perspectives on Japan’s electronics industry sector….

note: compare also with JVC-Kenwood Chairman Haruo Kawahara’s views on Japan’s electronics industry, and his turnaround of Kenwood.

Perspectives on Japan’s electronics sector by Freescale’s President for Japan & Korea, David Uze

Question (Gerhard Fasol): I have read several of your articles and interviews, and see that you express much optimism about Japan’s semiconductor industry. On the other hand, the retired Elpida-CEO Yukio Sakamoto said in an interview on Sept 5 in Nikkei, that the sale of Elpida to Micron was the best option for Elpida, while Renesas is also in a period of reconstruction.
How do you see Japan’s semiconductor sector, and where do you see its future?

Answer (David Uze): Japan’s semiconductor players have incredible IP portfolios. To not leverage such assets would clearly be missed opportunity for the Japanese economy.
Despite the pain and complexity of consolidation and restructuring, such actions usually force evolution. This leads to better product portfolios and the operational scale necessary to make the critical investments that fuel innovation. In the words of Friedrich Nietzsche, “What doesn’t kill you makes you stronger.” Similarly, in Japanese, “雨降って、地が固まる.” (in English: Rain makes the ground stronger).
Clearly, Japan will continue to be a chip design leader. Whether Japan returns to a prominent position in semiconductor manufacturing, relies largely on the priorities of the Japanese government and “Japan Inc.”

Question (Gerhard Fasol): At least until “Abenomics” and now the Olympic fever, a lot of companies globally are quite pessimistic about Japan’s growth. How do you see growth for your company in Japan? What do you feel about the future economic growth in the Japanese electronics sector?

Answer (David Uze): Freescale is working very hard to meet and exceed our Japanese customer’s expectation. Our belief and commitment to Japan is best embodied by the Japanese concept of being a “死に物狂い” partner to our customers (translation: a partner who never gives up, fights until death if necessary). Not a vendor. Our customers repeatedly tell me they want less “vendors” and more “true partners”. We are seeing business benefit from taking this path.
Japanese ingenuity and a technology savvy customer base has been and will continue to drive product innovation and ensure that Japan will remain a prominent player in the global marketplace.

Question (Gerhard Fasol): In my opinion, Japan has some incredible creativity – for example mobile internet which today is a major global growth industry, essentially was invented in Japan in 1999 by DoCoMo, KDDI and J-Phone, and Shuji Nakamura invented almost single handedly the GaN LED revolution which is revolutionizing the global lighting industry. How much R&D does Freescale do in Japan?

Answer (David Uze): In Japan, we have partnered with global technology leaders like Fuji Electric, Alps Electric and most recently Rohm Semiconductor. We continue to develop new technologies and solutions with these great companies and will expand our R&D partnerships in Japan.
Freescale is partnering with Tokyo University, software/hardware ecosystem partners and our customers in the automotive industry to develop solutions for next generation collision avoidance and other active safety applications.

Question (Gerhard Fasol): Tell us a bit more about your company Freescale if you like. What are your most exciting products now? Where would you like to drive your company in the future?

Answer (David Uze): Automotive makers/system suppliers and end-users are keenly interested in ADAS (advanced driver assistance systems), especially radar- and vision-based safety solutions. Freescale provides radar and logic chips for the most advanced safety solutions in the market. If your car has collision warning or parking assist features, they are likely based on Freescale technology.
Freescale has an intensely competitive culture. We won’t stop innovating and working to satisfy our customers until we are #1 in all market segments in which we participate. Of course, we won’t stop there.

Question (Gerhard Fasol): How big is your company in Japan now?

Answer (David Uze): Geographically, Freescale has offices in Tokyo, Nagoya and Sendai. Furthermore, we have extensive nationwide coverage via our excellent team of distribution partners including Avnet Internix, Marubun Corporation, Tokyo Electron Device and Toyota Tsusho Electronics as well as Chip-One-Stop as an e-tailer.
From a business scale perspective, Japan is one of Freescale’s largest and fastest growing markets. We have strong positions in Automotive and Digital Networking and are quickly expanding our footprint in Industrial and Consumer Electronics.

Question (Gerhard Fasol): Several times a week technology, software, energy, semiconductor companies approach my company with plans to enter Japan’s market, or to grow faster in Japan. What would be your most important advice to foreign technology companies thinking of entering Japan’s high-tech markets, or seeking to accelerate growth in Japan?

Answer (David Uze): Be sincere. Honor your commitments. Work hard.

Invitation to the races: The Asia Le Mans @ Fuji Speedway – international car racing event on September 20-22, 2013 free admission for all pre-registered Freescale guests

Question (Gerhard Fasol): You are holding a very interesting event at the Fuji Speedway on September 20-22. I know that you and Freescale are heavily engaged in R&D car racing. This sounds like a lot of fun, but there must be a very serious side also. Can you tell us why Freescale invests in car races, and what Freescale and Freescale customer get out of the car races?

Answer (David Uze): We are involved in Japan’s SuperGT racing series primarily to drive innovative R&D outcomes in automotive safety. Our focus is on contributing to a “Zero Fatality” vehicular future. Racing provides the most challenging environment for automotive systems due to the speed, vibration, g-forces and other environmental factors. Many revolutionary technologies have been borne from auto racing including; industrial utilization of the carbon fiber material, anti-lock brake systems, traction control, active suspension, seat belts and many other safety advancements.
Racing also provides a rallying point for our employees, partners and customers to work together as One Great Team (OGT!). We host 100’s of customers and partners during each race weekend where we have the opportunity to share ideas while fostering camaraderie. Off the track, our guests compete fiercely with one another. While at the track, they collaborate. This truly makes our Freescale OGT! Racing Program unique in both the racing industry and semiconductors.

Question (Gerhard Fasol): I heard you would like to invite our subscribers and readers to your Fuji Speedway event on Sept 20-22. Can you tell us a bit about what participants can expect, and how they can register?

Answer (David Uze): We’ll be offering very unique experiences to a broad range of people including current and future customers/partners, race fans, their families and even students. It is a combination of

  • Technology demonstrations
  • Asia Le Mans Race(s)
  • Hands-on technical seminars
  • Guest Kart racing
  • “Drifting” & “Dakar” rides
  • Driving the circuit in own car
  • Dance party with Suzuki Ami (musician)

Your readers are welcome to enjoy this unique experience together with colleagues, family and friends.
Registration is easy. Just access the below link. Once you complete all inputs you will receive an acceptance e-mail in a couple of days that will be your gate pass to the event at Fuji Speedway. (日本語)

[details and registration here (日本語)]
[details and registration (English)]

David Uze invites our readers and subscribers to join the team for an exciting weekend of car racing at the legendary Fuji Speedway on September 20-22, 2013. You can have fun watching the races, attend a dance party hosted by musician & DJ Suzuki Ami and enjoy many fun family activities. This is also an opportunity to learn hands-on about the future of automotive technology and car electronics.
Details about the event and registration here: (日本語) (English)

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