| November 1999 CONTENTS: FEATURE MARKET NEWS NEW TECHNOLOGY MULTIMEDIA ALERT BIO-SCIENCE DEVELOPMENT ENVIRONMENT SEMICONDUCTORS SPECIAL SECTION STRATEGIC ALLIANCES NTT DoCoMo was caught by surprise at the success of its i-mode service offering Internet access via mobile phone, which is used primarily by young people. There are signs the explosive increase in mobile-phone use could be the catalyst needed to bring mass access to the Internet in Japan. NTT Mobile Communications Network Inc. (NTT DoCoMo) has reported that the number of subscribers to its ìi-modeî service, which allows Internet access from its handsets, had broken through the 2-million line. Anticipating a huge potential market, content providers are rushing to enter the fray, further attracting new subscribers. This expanding circle is well under way. The U.S. may lead the world in wired Internet access, but Japan is hard on the heels of Finland, the world leader, in terms of mobile access. NTT DoCoMo began offering the i-mode service in February, including such popular features as electronic-mail capability, ticket reservations and even fortune-telling functions. News updates and games are also available. Online activities that used to require a computer can now be performed from a mobile phone. Initially, some critics adopted a cynical attitude to i-mode, asking what of substance could appear on such a small display, but the pace of acceptance left this view behind. It took almost six months for subscriptions to top 1 million, but just two more months to add another 1 million, but just two more months to add another 1 million. This forced NTT DoCoMo to revise the subscription target up to over 4 million through March. The booming popularity of i-mode, particularly among the young, has led to astronomical growth in online services. The number of authorized services started at 65, and reached 242 by mid-October. The list of choices from service providers that operate independently of NTT DoCoMo now numbers 2,172 and continues to grow. The senior manager of NTT DoCoMoís Gateway Business Department, says the original i-mode concept was like a convenience store - available anytime, anywhere. But as it turned out, the ìeasy-to-use and fun-to-chooseî mobile phones are more like a sushi shop that serves tidbits from a constantly moving belt, or like a 100 yen variety-goods shop, where there is always something affordable. She said i-mode phones satisfy a strong consumer demand. The i-mode phones can be used during the small breaks in peopleís daily lives, unlike computers, which take much linger to set up and involve more of a ritual. The always-ready handsets in contrast offer many opportunities for providers to reach potential customers throughout the day. Interest in i-mode is rapidly spreading in the U.S. In a recent speech at Sun Microsystems Inc., the U.S. was said to have committed a blunder by neglecting the mobile-access market. The extraordinary love affair with i-mode could foretell a post-PC period of widespread Internet access. Future mobile phones must be capable of receiving large chunks of data, including moving images, if they expect to qualify to be the next generation of multimedia terminals. NTT DoCoMo plans to start a commercial service in the spring of 2001 that will lead the world in sophistication. Mobile-phone users will ride future technological waves, and when Japan gains a large nucleus of wireless Internet surfers, the U.S. will no longer be the only Internet power. The company still faces numerous challenges. It is uncertain whether the passion for i-mode service will lead to profitability. The service generates three revenue sources - the basic fee of 300 yen per month, the data-transmission fee, and the 9% commission paid by content providers. The most important is the data-transmission, but revenue from this averages just 1,000 yen a month per user, less than 15% of the amount earned from voice transmissions. NTT DoCoMo now enjoys a higher market capitalization than its giant parent, Nippon Telegraph and Telephone Corp., but analysts caution that the company shouldnít celebrate its success prematurely. It must continue fostering data-communications services, especially i-mode, to maintain high growth. MARKET NEWSElectronics Makers Push Memory Cards Sony Corp., Matsushita Electric Industrial Co. and other major consumer-electronics makers are engaged in a fierce battle to establish their compact memory cards as the industry standard, anticipating that the tiny memory media will be the key device for connecting digital electronics in imaginative ways. Sony will provide a license to six electronics makers to produce its Memory Stick memory card and compatible audiovisual equipment. The six are Sharp Corp., Sanyo Electric Co., Fujitsu Ltd., Aiwa Co., Kenwood Corp. and Pioneer Corp. Fujitsu will produce and supply the memory device to Sony on an original-equipment-manufacturing basis. The other five will produce and sell compatible audiovisual equipment, such as a portable player with a copyright-protection function, under their won brands from next year. The licensees will pay royalties to Sony according to their sales. Sony is offering a license to Philips Electronics NV of the Netherlands as well. Some industry analysts predict sales of compact-memory cards will grow to $10 billion in 2005. The Memory Stick consists of a flash memory and a chip with a copyright-protection function. The device enables personal computers, digital camcorders and other audiovisual equipment to share music and video data. Sony has been expanding the use of Memory Stick to audiovisual equipment since introduction the device for use with its Vaio series of PCs in September of last year. Toshiba Corp. and SanDisk and Matsushita Electric joined forces in the development of an advanced compact memory card for use in audio equipment. Sony stresses that its Memory Stick is designed to ensure greater compatibility with audiovisual equipment, compared with audiovisual equipment, compared with memory cards produced by rivals. The company estimates that sales of compact memory cards will total some 10 million units this fiscal year; Memory Sticks are projected to account for 3 million. Competition is expected to intensify, however, Sony aims at grabbing a 50% share of a global market estimated to reach 20 million units next fiscal year. Computer Associates, BaaN Japan And EXE Announce Strategic AllianceComputer Associates International, Inc., BaaN Japan and EXE Inc. announced a strategic alliance designed to enable Japanese companies to create total solutions for the rapidly growing supply chain management (SCM) field. The companies will jointly market the new solutions, which will be built on Unicenter TNG, CAís industry-leading enterprise management software. To meet the demand for reliable and efficient management, the new SCM solutions will incorporate the technologies of BaaN Japanís Supply Chain Solution and EXEís Nexus II to deliver the most advanced solutions available for supply chain management. Nexus II is an integrated distribution package utilizing abject-oriented design technology. The alliance will enable CA to extend Unicenter TNG to the rapidly growing SCM market segment. CA will focus on the manufacturing, logistics and service areas of the industry. Computer Associates International, Inc., the world leader in mission-critical business computing, provides software, support and integration services in more than 100 countries around the world. CA has more than 17,500 employees and had revenue of $5.3 billion in fiscal year 1999. ISD Announces Distribution Agreement With Fujitsu Devices, Inc.Information Storage Devices, Inc. (ISD), a Winbond company and the leading supplier of semiconductor voice solutions, announced that Fujitsu Devices, Inc. (FDI) will begin distributing ISDís ChipCorder and VoiceDSP integrated circuits in Japan and will transition from ISDís current distributor, Marubun Corporation. FDI brings a strong background in design and technical support to ISD customers. In addition, FDI has extensive experience in several of ISDís key markets, including communications, consumer, industrial and automotive. Sanyo, Kodak Develop Color Organic Electroluminescent Displays Sanyo Electric Co., Ltd. and Eastman Kodak Co. have jointly developed two types of organic electroluminescent (EL) displays. The two are a full-color, active-matrix-structure type based on thin-film transistor technology that can display dynamic images, and an area-color, passive-matrix-structure type that can display pre-determined areas using pre-determined colors. The former has a 2.4-in. panel for use in monitors for digital still cameras and digital camcorders. The latter comprises a 1.3-in. panel developed for use in mobile phones. Organic EL displays are a new type of luminescence display that produce light through the application of an electric current. An amino resin is used as the EL layer. Kodak developed the technology for organic EL materials, and Sanyo Electric offered deposition technology for the low-temperature polycrystalline silicon thin-film transistor. The displays are about a third as thick as standard LCD displays equipped with backlights. Also, the power consumption is reduced by about half that of the LCD displays. The costs of production for these units will be competitive with those of standard LCD displays. An area-color type is due to be available in the fiscal year through March 31, 2000, and a full-color dynamic image display type will be available in fiscal 2001. Epson Sells LCD Projector With 1,280 x 1,024 Resolution Seiko Epson Corp. launched the ìELP-9000,î a liquid-crystal display projector that can show 1,280 x 1,024 pixels. The projector can display high-resolution data, such as computer-aided design/computer-aided manufacturing (CAD/CAM) information. The product is suitable for engineering use. It is priced at 1.98 million yen. The target number of units to be sold within a year is 1,500. The ELP-9000 is equipped with three 1.3-in. liquid-crystal panels. A new image-processing circuit optimized the resizing of input signals. It can display 1,280 x 1,024-pixel video from the input data with 640 x 480 pixels to 1,600 x 1,200 pixels. The ELP-9000 has a brightness of 1,700 ANSI lumens. Three units of the ELP-9000 can be stacked on top of one another so users can simultaneously project the same picture. The stacked projection gives three times the brightness of a single ELP-9000, so it allows users to view video even in a well-lighted room. Sanyo also sells an exclusive metal fitting to be used to stack up the three ELP-9000s. The projector comes with a maximum 4x electronic zoom which allows users to display videos enlarged every 0.125 step. The production comes with the following analog input terminals to connect with a PC: one D-SUB15 and one BNC connector for the projection terminal, as well as a stereo mini jack and an RCA for the voice terminal. In addition, an input terminal is available that allows users to connect the projector to a video deck or a DVD player. The product comes with one RCA/S terminal for the video terminal for the video terminal and two RCAs for the voice terminal. The ELP-9000 measures 303mm wide x 389mm deep x 147mm high and weighs about 8.3kg. Optical Sensors Help Cut Cost Of Display A new, relatively inexpensive electronic-blackboard system developed by Ricoh Co. and Ricoh Elemex Corp., a developer and marketer of office automation equipment offers a boost to digital presentations by making interactivity smoother. The new system consists of a large screen equipped with special optical sensors and computer software to detect the position of a finger or pointer and convert that position into characters and shapes. Gestures made on the large display with a finger or pointer are detected by a set of optical sensors, then the computer digitally paints that motion onto the screen. The system can digitally recreate on the screen circles, underlines and written text. Other electronic blackboards have the same ability to detect the position of a pointer. But Ricoh said that the optical-sensor system costs as little as one-seventh the price of sensor systems based on ultrasound or tactile pressure. The company said it aims to have commercial products ready by next year for business and school use. With the new system, the software is loaded into the same personal conputer in which digital images are stored for the presentation. The optical sensors scan the surface of the screen with a thin layer of light. When a finger or a pointer breaches the surface of that layer of light, the sensors detect the reflection, and the computer calculates the position of the interruption on the screen. No special pen is needed, and even light contact with the screen surface can be detected. Most electronic-blackboard displays work with pressure sensors or with ultrasound sensors to detect where the presenter is pointing. But the surface of the screen needs to be covered with glass of some kind of film, which makes viewing difficult and pushes up cost. With optical sensors, the screen does not need to be covered by any special kind of film, so the display can be seen more clearly. It also helps bring costs down. In the case of electronic blackboards with large 70-inch displays, the optical sensor system costs one-half to as little as one-seventh as much as conventional sensor systems. The price of a 70-inch electronic blackboard based on conventional technologies is around 10 million-yen ($93,458). The trend in the electronic-blackboard market is toward bigger displays. By boosting the output of the optical sensors, Ricoh said it should be able to produce displays larger than 70 inches. MULTIMEDIA ALERTVoice-Recognition Software Coming IBM Japan Ltd. has reached cooperative agreements with Hitachi Ltd., Justsystem Corp. and major electronics retailer Kojima Co. to support marketing of IBMís voice-recognition software for personal computers. ViaVoice Millennium, the latest version in the series, is set for release later this month. It boasts a recognition rate of 98-99% compared with the 90% of earlier versions. The time needed to register usersí voices has also been shortened to 10 minutes from 30 minutes. IBM Japan will sell ViaVoice Pro Millennium for 18,000 yen. The company hopes annual sales will total 1 million copies. Justsystem will begin selling Voice Ichitaro 10 e-Talk for 28,000 yen toward the end of this month, something that will help IBM Japan in marketing ViaVoice. The Japanese-language word-processing software will enable users to create documents and exchange electronic mail by using the voice rather than the keyboard to issue commands. Fuji Film To Launch Digital Camera With Print Capability Fuji Photo Film Co., Ltd. said it will start marketing a instant digital camera on Nov. 20 called ìDigital In-Printer Camera FinePix PR21î (Princam). The camera can print out photographs immediately. It incorporates the companyís 2.3-megapixel digital camera ìFinePix2700î with the printing capability of its disposable ìChekiî camera. The digital camera can print photographed pictures on film for disposable cameras immediately after they are shot. The price will be 99,800 yen. Princam uses the same ISO800 ìinstax miniî mono-sheet films used for the Cheki. The size of the film will be approximately 86mm by 54mm and the print area will be approximately 62mm by 46mm, which is almost the same size as a business card. Pictures will be converted to a 254dpi resolution and then output on film at approximately 35 seconds per picture. The Princam will have various functions such as a ìtemplate composite function,î which composes three kinds of built-in templates and the taken picture, and a ìtrimming printî function which allows the user to enlarge a part of a picture and print it. Templates for composition can be downloaded from Fuji Filmís home page and modified. SmartMedia will be adapted as the recording media for pictures. It will be possible to input the photographed pictures into PCs to manipulate them, or print out pictures photographed by other digital cameras and recorded on SmartMedia using Princam. The camera will have a half-inch square pixel charge-coupled device and RGB color filter. The viewing angle of the built-in lens is equivalent to approximately 35mm. It will have a 2.5x zooming capability. The Princam will also have an optional finder as well as a 1.8-in. LCD monitor. For power, it needs triple A batteries or an optional AC adapter. Digital Technology Rewrites Rules Of Publishing Game The digital revolution is bringing dramatic change to the economics of printing and publishing. Publishers and others in the trade - including the owners of rights to written, spoken, audio and visual content - are beginning to realize there is money to be made in the provision of old wine in new bottles. For instance, the concept of ìout of print,î for long the answer to a query about availability much dreaded by book lovers, is fast becoming obsolete thanks to the depth and breadth of digital memory. It is expensive and risky to republish old title, since demand is hard to predict, so once a book went out of print there was little chance it would ever come back. With digital technologies, however, any content stored in digital form can be printed at any time. Publishers no longer need to worry about inventory costs, and that frees them to be much more flexible regarding what publisher and in what quantities. In fact, it has now become economically feasible to sell books on a print-to-order basis - custom-made publishing in print runs as small as a single copy. That is the premise of a new service being developed by leading publishing agent Nippon Shuppan Hanbai Inc. The company is taking custody of the originals of out-of-print titles from publishing companies and converting the originals into digital form. That puts it in a position to print and deliver even single copies on a made-to-order basis. For this business, Nippon Shuppan Hanbai is set to establish in a joint venture called Booking to take offers from consumers via the Internet. A total of 12 other companies are participating in this venture, including leading publishers Shogakukan Inc. and Gakken Co. The venture will start with a database of 2,000 titles and aims to expand its list to 30,000 after five years. The digital revolution is also breathing new life into the business of publishing academic works and other types of publications that have tended to be very expensive and hard to find due to a restricted base of potential buyers. For example, major bookstore operator Kinokuniya Co. has begun a new book-printing service targeting the scientific community, in cooperation with Fuji Xerox Co. and five academic-press publishers. The company is making digital copies of significant scientific works and promises to make deliveries within 10 days of receiving orders via the Internet. Kinokuniya said it can accommodate orders of even single copies. Publishers are also mining their inventories of out-of-print materials to develop this new business. Researchers Report Progress On Long-Term Artificial Lung Medical researchers from Osaka University report that they have made progress toward developing an artificial lung that remains functional over prolonged periods of use without triggering inflammation. The prototype is a hybrid-type artificial lung that combines artificial materials with living cells, creating a biocompatible replacement for the dysfunctional organ. The work so far only involves rats and rat cells, but the results appear promising for future applications in humans. In the new artificial lung, a bundle of polypropylene hollow fibers substitute for the structure in the lungs where carbon dioxide and oxygen are exchange in the blood. To increase biocompatibility, the insides of the tubes are coated with endothelial cells from the inner walls of the blood vessels of rats. To promote adhesion of these cells, the insides of the hollow tubes are treated with fibronectin and collagen. In the new hybrid artificial lung, the hollow fibers are coated with rat cells that have been genetically modified to produce an enzyme called nitric-oxide syntheses (NOS) and another type of interleukin called IL-10. Both of these chemicals inhibit the activity of IL-8 and thereby help prevent inflammation. In animal experiments, the NOS and IL-10 synthesized by the cells inside the tubes of the artificial lung reduced IL-8 blood levels to just 25% the amount found when a conventional artificial lung is inserted into test animals. New Cancer Fighter FoundResearchers from the Science University of Tokyo have reported the discovery of a new substance that inhibits the spread of cancer. The new substance is a peptide made of a string of 21 amino acids that comprises a portion of the protein known a fibronectin. Animal test showed that this peptide, dubbed III 14-2, actually interferes with cellular adhesion. It robs cancer cells of the ability to metastasize from the tumor mass to other organs. In the control mice, the lymphoma cells spread and began to proliferate. But in the mice that also received an injection of III 14-2, the lymphoma cell did not proliferate, and the liver did not exhibit any changes even after two weeks. Device Promises More Sensitive Way To Screen For Cancer, InfectionsKyushu University scientists have developed a more sensitive way to detect the antibody-antigen reactions used in immunoassays that screen for cancer and diagnose infections. The new method is four times more sensitive than conventional light-based assays, and with improvements the detective capabilities could be boosted more than one hundred times over. In an immunoassay, specific antibodies are used to identify specific marker antigens such as a certain kind of cancer cell or the causative agent of some infection or allergy. In conventional tests of this type, a fluorescent pigment is attached to the antibody used in the testing, and the light from this pigment is used to detect the antibody-antigen reaction. However, when light is used as the basis for detection, there is a limit to the sensitivity of the tests. For this reason, doctors and scientists have been calling for a more powerful assay method. In the new technique developed by the Kyushu group, the fluorescent pigments are replaced by microscopic particles of an magnetic substance and the antibody-antigen reaction is detected not by the presence of light, but by the presence of an extremely weak magnetic field. A supercomputing quantum interference device, a very sensitive instrument known by the acronym SQUID, is used to detect the magnetism. For the tests, antibody molecules are fixed to a glass slide, and the slide is immersed in a liquid containing the test sample. When this is done, target antigens in the sample bind to the antibodies. The slide is then rinsed with another liquid that contains some of the same antibodies, which is time are attached to microscopic magnetic particles. If the target antigen is present in the sample, then an antibody ìsandwichî is created, which can be detected by the SQUID sensor. The new detection system is around twice as expensive as conventional light-based equipment. The Kyushu group aims to boost the precision of the technique even further and have a practical system ready next year. Tissues Using Plant Fiber Raise InterestDaio Paper Corp. in January began marketing new tissues made with kenaf, a fast-growing annual. They are attracting attention, mainly among younger people, as a product that does not place a burden on the environment. The tissues are as soft and smooth as those made from wood pulp. A 200-sheet box of its two-ply elleair kenafy tissues sells for 220 yen. A set of three boxes is 660 yen, while five boxes are 1,100 yen. Rising carbon dioxide emissions are said to promote global warming, so the felling of trees, which absorb carbon dioxide and emit oxygen, is becoming more and more of an issue. Paper products containing waste paper have recently become common, but nonwood resources such as kenaf and straw are also drawing attention. Kenaf grows quickly, with seeds planted in the spring sprouting into plants about 4 meters tall by autumn. It also absorbs about seven times as much carbon dioxide as other plants, so it is useful in fighting global warming. It has recently found its way into business cards, postcards and notebooks. Development began in September 1998. Kenaf is commercially grown in China and Thailand, but the Thai product was judged more appropriate for tissues. Daio Paper will now strive to improve the product from a quality and a cost perspective; the company is also considering kenaf toilet paper. The company realized a commercial product by combining kenaf with hardwood and softwood pulps. In addition, the box mouth covering was changed to recyclable rayon, as opposed to the usual vinyl sheet. The kenaf product now accounts for a few percent of Daio Paperís monthly tissue output of 10,000 metric tons. Abnormal Sea Level Along Pacific Coast Of Central JapanIn the Tokai district, central Japan, the ìabnormal sea levelî where the level of the sea goes up than the usual level continues to be observed. This morning, the sea level became even higher due to the transit of a low-pressure system and some damages such as flooding of roads by sea water were spotted. The meteorological observatory has issued the high tide warning to the coast area of Aichi and Mie Prefecture since there is some possibility that the level of the sea might go up due to the siphoning phenomenon with the transit of a low pressure. In the Tokai district, the abnormal sea level has been observed from the beginning of this month and meteorological experts say that the Black Japan current pouring into the shore might be the factor causing this high tide. Recyclers Making Headway In Toner-Cartridge Market In the Tokai district, central Japan, the ìabnormal sea levelî where the level of the sea goes up than the usual level continues to be observed. This morning, the sea level became even higher due to the transit of a low-pressure system and some damages such as flooding of roads by sea water were spotted. The meteorological observatory has issued the high tide warning to the coast area of Aichi and Mie Prefecture since there is some possibility that the level of the sea might go up due to the siphoning phenomenon with the transit of a low pressure. In the Tokai district, the abnormal sea level has been observed from the beginning of this month and meteorological experts say that the Black Japan current pouring into the shore might be the factor causing this high tide. Recyclers Making Headway In Toner-Cartridge MarketFierce price competition in the printer market has robbed printer makers of a large portion of their profits. Nevertheless, the companies appear as determined as ever to sell more volume since there is money to be made from after-sales supply of consumables, especially toner cartridges. This business strategy is now facing a serious threat with the rising popularity of recycled toner cartridges. Pinter makers are finding there is little they can do to maintain profitability of their toner cartridge business. Daiohs Corp., a leading supplier of coffee and related products to offices around the country expanded into the recycling business in April 1997. Although Daiohs consigns recycling to subcontractors, Daiohs personnel, taking advantage of its extensive coffee-service network handle collection and delivery of cartridges. The company estimates around 10% of its total sales will come from recycled toner cartridges this fiscal year. It is hoping the new business will help it realize its goal of listing its stock on the Tokyo Stock Exchange second section in 2002; its shares are now traded on the over-the-counter market. While many companies still throw away used toner cartridges and buy new ones from printer makers or authorized dealers, more and more are turning to cartridge recycling since recycling knocks 50-60% off the typical price of 30,000 yen for a new toner cartridge. Osaka Plant Co., one of the first toner-cartridge recyclers in Japan, said they have received many offers to form business partnerships recently. The company operates five plants in Osaka and Fukui prefectures and recycles about 50,000 cartridges a month. When Osaka Plant started toner-cartridge recycling 12 years ago, there were virtually no other players in the market. But the number of competitors has kept rising along with increased use of laser printers. While some are small outfits that only deal with toner refilling, recycling no longer belongs to the category of niche businesses since it now commands around 10% of a toner-cartridge market estimated at some 10 million units a year. The success of the toner-cartridge recyclers was getting printer makers and their dealers worried and frustrated. As a countermeasure, printer makers have even considered the idea of developing toner cartridges that are difficult to recycle, but none has adopted the measure since it would only drive up the production cost and result in lower profits. Cutting prices for new toner cartridges is also a possible option for countering the rising popularity of recycled cartridges, but price cuts would also depress profits. Some printer makers are said to have been contemplating lawsuits against toner recyclers on charges of patent breach. Not one has done so yet, however, since there is a good chance such lawsuits could backfire and result in bad publicity. NEC Develops Tiny Switch For Optical Routers NEC Corp. has developed a small, high-speed optical switching device that promises to shrink the size of large-scale optical routers and optical asynchronous-transfer-mode, or ATM, switches. The company aims to begin integrating the switching device into products over several years. Designed by NECís Optoelectronics and High Frequency Device Research Laboratories, the device integrated optical amplifiers and their drive circuitry on the same substrate and features a structure of easy connection of the external optical fiber, eliminating the need for fine-scale fiber-length adjustments. The new switching device is approximately 40 sq. millimeters in area and 3mm thick. The central silicon substrate carries a pair of semiconductor-optical-amp-gate, or SOAG, amplifiers that switch the optical signals on and off. Each SOAG is approximately 1 sq. millimeter in area and can process four channels. Each SOAG is surrounded by the circuitry used to control each channel. NEC designed these SOAGs with a slightly bent waveguide that serves to improve the amplifierís extinction ratio, which refers to the difference in power level needed to switch the optical signal between the on and off states. In NECís new switching device, the extinction ratio is greater than 40 decibels, which is a major improvement over other prototypes made to date. To connect this switching device to other equipment, the external optical fiber is simply inserted into the connector built into the device. SOAGs are not integrated with their peripheral circuitry, with the result that even a one-channel device takes up 10-20mm of space. Moreover, individual optical fibers stick out from the SOAGs. NEC said it plans to use the new switching devices in the kinds of fast large-volume optical routers and optical ATM switches that are expected to debut in two to three years. Innovative Breakwater Based On Semiconductor Principles General contractor Kumagai Gumi Co. has developed a new type of breakwater to protect harbors from large waves generated by storms and earthquakes. The new design is based on the same principles of wave cancellation used in the electronics industry for semiconductor filters. These filters capture specific radio-wave signals in cellular phones and other devices. Conventional breakwaters sit in front of the mouth of the harbor and force boats to turn sideways to enter or exit. The new breakwater is built from a pair of structures positioned on either side of the entrance, which gives boats safer direct access to the harbor. The exact design is determined using what Kumagai Gumi calls itsî wave filterî method for canceling waves. The optimal size and location of the twin structures ae calculated using data on the depth of the harbor, its topology, and the periodicity of the waves that are meant to be canceled. To evaluate the design, the company ran computer simulations on a large-scale harbor 400 meters wide, 200 meters long and with a 50-meter opening. If two 60-meter-long breakwater structures are positioned 50 meters from the mouth of the harbor, then large waves from a typhoon with a periodicity of nine seconds can be reduced to less than 20% of their original size. The computer simulations showed that a similar effect could be achieved for normal waves that have a periodicity of four to five seconds. Japanís Toshiba To Tie Up With SanDisk To Make Flash Memory Chips Japanís Toshiba corp. said it will set up a joint venture with the U.S. firm SanDisk Corp. to make flash memory chips. The two firms will equally own the venture, which from January will make 512 megabit and one gigabit flash memory chips. It will also work on controllers for the Secure Digital memory card. Flash memory chips and devices like the SD memory card are used in digital video and still cameras and even the latest Sony Corp. Walkman. They can hold video and audio information but are smaller and more flexible than cassette tapes or compact discs. The venture will start production at a Toshiba plant in Japan and more production capacity is planned at a Toshiba subsidiaryís plant in Virginia, in the United States. Digital Satellite TV Promises Whole New Range Of Services With a little over a year left before the December 2000 start of regular digital satellite broadcasting services in Japan, broadcasters and consumer-electronics makers have finalized most of the technology required for the service. Test broadcasts in September 2000 will feature coverage of the Sydney Olympics by Japan Broadcasting Corp. (NHK), the semipublic broadcaster. After that, eight broadcasters - NHK, five commercial networks, Japan Satellite Broadcasting Inc. (WOWOW) and Star Channel Inc. - are expected to begin offering digital television via broadcast satellite. To obtain access to those services, however, viewers will have to buy an advanced TV set with a built-in digital broadcasting tuner or an adapter to connect to an existing analog set. Digital TV sets are likely to be priced at several hundred thousand yen, while the receiver adapter is expected to be sold for 20,000 to 50,000 yen. All tuners and adapters will come with an integrated-circuit card that has a unique identification number. Viewers will have to register the ID number at an administrative center to be established jointly by the broadcasters. The broadcasting format, to be called Digital Hi-Vision, will offer far crisper images than currently available because it has more than twice the number of scan lines than in analog broadcasting. With the technical details virtually complete, broadcasters are now focusing on the most important element for the success of the digital system: content. NHK currently offers two analog satellite channels --one specializing in news and sports and the other in culture and entertainment. For the digital service, NHK said it plans to air the highest quality programs, regardless of category. Broadcasters affiliated with ground-based TV stations are facing the challenge of producing attractive programs at low cost while establishing in viewersí minds a significant difference with existing programming. BS Japan Corp., a digital satellite broadcaster affiliated with Nippon Television Network Corp., aims to center its programs on news, with coverage of Japanese professional baseball as the main attraction. In addition to TV, satellite digital services will also be used to broadcast data. NHK has plans for offering data-retrieval services that enable viewers to obtain text-based local news and weather reports by inputting the postal code of the area through the remote control. Interactive services that use telephone lines are also expected to be a part of the satellite digital service. Tokyo Broadcasting System Inc. (TBS), for example, is working toward offering an interactive quiz show. Other data-broadcasting services are also scheduled to be offered by companies not directly involved in broadcasting. WOWOW, an entertainment channel with a strong focus on music and movies, and StarChannel, a movie channel, plan to charge monthly fees for their digital services. The exact amounts have yet to be determined, but they are likely to be based on the charge structure for their existing analog services. Private broadcasters will run commercials and do not plan to charge fees initially. NHK will continue relying on the existing viewing charge levied on all households with TV sets. People already paying the extra fee for NHKís analog satellite channels will be able to view the digital service at no additional charge. Around 13 million households in Japan newly subscribe to satellite channels. Broadcasters and consumer-electronics makers aim to attract 10 million households to the satellite digital services by the 1,000th day of operation. STRATEGIC ALLIANCES JAPAN IN THE UNITED STATES Rogers Corporation & Mitsui chemicals, Inc. Form Joint Venture Two company presidents signed an agreement that created a new specialty circuit material company, Polyimide Laminate Systems (PLS). The new company is a 50-50 joint venture between Mitsui Chemicals, Inc. of Tokyo, Japan, and Rogers Corporation of Rogers, Connecticut, U.S.A. PLS will manufacture a specialty flexible circuit board laminate used for making the read/write head suspension assemblies in high performance, hard disk drives (HDDs). These suspension assemblies, developed by Hutchinson Technology, Inc., of Hutchinson, Minnesota, for advanced HDDs, are the technology of choice in new HDD designs. Called Trace Suspension Assemblies (TSA), this Hutchinson product allows manufacturers to lower costs and improve performance. Hutchinson, the worldís leading supplier of suspension assemblies for HDDs, has led the advancement of drive technology since entering the business in 1982. The news venture pairs the specialty material capabilities of Rogers with the specialty material and chemical capabilities of Mitsui, creating an outstanding opportunity to provide customers with electronic materials that support advanced circuit technologies. PLS will be located in a new plant to be constructed in Chandler, Arizona, and will become the domestic U.S. manufacturing facility, complementing the MCI facility in Nagoya, Japan. The PLS product is a specialty adhesiveless laminate, comprised of copper, polyimide, and stainless steel, that is custom manufactured for exceptionally high performance flexible circuits. NTT DoCoMo To Set Up Holding Company, IMT-2000 Research Lab In U.S. NTT Mobile Communications Network, Inc. said it will establish a wholly owned holding company and research laboratory in the United States in early November. With this move which is part of NTT DoCoMo will become an entity of the holding company. The two companies to be established are the holding company, NTT DoCoMo USA Inc., and the 100 percent subsidiary, DoCoMo Communications Laboratories USA Inc. DoCoMo Communications USA, which will be an R&D center, will explore mobile technologies such as the ìIMT-2000î, and Internet technologies. The two companies will be located in the Silicon Valley area of California, a place densely populated with IT companies. In addition, NTT DoCoMoís wholly owned U.S. corporation, DCM Investment, which was established in March 1996, will be transferred to the holding company. DCM Investment targets communications-related venture companies. Short News
STRATEGIC ALLIANCES THE UNITED STATES IN JAPAN NTT DoCoMo, Microsoft To Tie Up In Mobile Communication Microsoft Corp. and Japanís mobile telephone carrier NTT DoCoMo Inc. delighted investors by announcing a joint communications venture. News of the Mobimagic Co. Ltd. venture, aimed at business customers, sent NTT DoCoMo shares surging 80,000 yen, or 3.2 percent, to 2.55 million yen ($24,286) each in mid-afternoon trade. The marketís overall barometer, Nikkei 225 index, was up 25.36 points to 17,674.15. Initial capital investment in the equally held venture would total just 200 million yen ($1.9 million dollars) but a spokesman for NTT said further investments were planned. The center would be running by the middle of next year. By strengthening its ties with Microsoft, NTT DoCoMo hoped to attract subscribers for its new mobile phone services, based on next-generation technologies, which will start in 2001, said the Japanese press. According to the statement, the two firms will ìaggressively promoteî mobile phones using Microsoftís microbrowser technology and palm-sized PCs using Microsoft Windows CE operating system together with Mobimagic services. Secom, Nihon Cisco Systems Announce Tie-Up For Security Service Secom Co., Ltd. and Nihon Cisco Systems KK announced on Oct. 13 the formation of a business partnership to provide security services for virtual private networks (VPNs). The two companies will jointly host seminars and market security products targeting communications companies and Internet service providers (ISPs). They will offer systems, which combine Secom security services, including Web-site authentication with the routers and firewall products of Cisco Systems Inc. of the United States. Secom plans to develop its network security business into a major source of earnings and Nihon Cisco wants to attract major companies planning to build large-scale networks that require advanced security features. Secom expects demand for VPN security services will increase in the future, particularly from ISPs. In March 2000, the company will begin supplying authentication services primarily for VPNs. By incorporating Cisco products, which hold an overwhelming market share among ISPs and communications firms, Secom hopes to win major corporate clients. Nihon Cisco aims to lift market penetration of its products through the tie-up with Secom, which already provides safety management systems and security facilities for firms like domestic financial institutions looking to expand business over the Internet. Short News
STRATEGIC ALLIANCES THE JAPAN TECHNOLOGY ALERT ADSL Service Company formed in Japan Sonet International Corp and Surigiken Co., Ltd. formed a joint venture, Tokyo Metallic Communications Co., Ltd., that will provide low cost, high speed Internet access services over existing telephone lines. Asymmetric digital subscriber line (ADSL) technology will be employed to quickly transfer data via phone lines. Data will be sent at a higher frequency band than usual due to the use of copper cables, or dry copper. Nippon Telephone and Telegraph Corp. is installing such cables in its telephone networks. By decree of the Ministry of Posts and Telecommunications, NTT was forced to make its cable available to other telecom service providers, thus increasing competition. |
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