October 2001
CONTENTS
MARKET NEWS
NEC Shows Increase in Mobile Sales
Yahoo Japan brings Good News
IC Cards Ensure ID
Numbers over 1 mil.
NEW TECHNOLOGY
Sanyo’s Revolutionizes Laundry
Intel Introduces low-power Server Chips.
New Street Light System
MULTIMEDIA ALERT
Fujitsu, IBM Discuss Future
Fixed-Line Net Gets Poor Reception.
Joint Platform
BIO-SCIENCE DEVELOPMENT
Mitsubishi Chemical
Device to Inject Atomic Clusters
The Beginning of the End of Hair Loss
ENVIRONMENT
Automakers Search for Clean Cars
The Future of Fuel Cells
SEMICONDUCTOR
Japan Chipmakers Halt Operations
Korean DRAMs Challenge Chip Firms
Waves in Chips
STRATEGIC ALLIANCES
Japan in the United States
United States in Japan
Sony
Corp. Admits to Feeling Weakening Industry
Sony
Corp, one of the most highly innovative Japanese companies, has been
feeling the shift in market strength.
The competitive edge amongst technological and electronics devices
is increasing, as the global economic status is steadily declining,
creating a very tough environment for companies to maintain status quo. Sony is a signature company, continuously introducing cutting
edge technology that is accepted and trusted within the consumer market.
Sony is able to report that the company’s earning for the
July-September quarter of fiscal 2001 show that consolidated sales
increased to a record $14.6 billion (¥1.79 trillion), up 5.7% year on
year. An operating loss was
sustained of ¥3.4 billion,
the same period operating profit for fiscal 2000 was ¥53.1 billion. There was a decline in pretax profit of 99.2% from fiscal
2000’s second quarter to ¥610 million.
The company has also suffered a harsh fall in net income from ¥18.7
billion net profit to a second-quarter net loss of ¥13.2 billion. Although Sony Corp. does acknowledge that the quarterly
profit is suffering, it refuses to alter the forecast recently announced
on September 28th, of operating profit of ¥120 billion for fiscal 2001.
Analysts are not supportive of the company’s ability to hold the
decline in operating income to 15% in the second half of fiscal 2001 in
order to achieve the set target. Morgan Stanley Japan Ltd., analyst Takatoshi
Yamamoto of the electronics sector foresees an estimated drop of 40% in
operating income for the period. Sony’s
plans to develop in the broadband business sector have suffered as a
result of the decline in profit earnings in its once invincible
electronics-equipment business. The
profits finance upfront investment for its broadband business also
hindering its synergistic strategy of “heightened demand for its
hardware products through increased broadband service”.
Teruhisa Tokunaka, Sony’s chief financial officer, has cited that
the worsening profits in the electronics business has had the largest
impact on the decline in second quarter profits .
The drop in electronics profits has been attributed to the
“intensified competition in Sony’s major markets, including U.S.,
Europe, Japan and Asia” the company has cited. It has become apparent
that Sony is losing the tight grasp once had on the consumer electronics
market. UBS Warburg (Japan)
Ltd. , downgraded their investment grade of Sony from “hold” to
“reduce” prior to the quarterly financial announcement by the company. UBS has also felt the need to revise their share price
outlook for Sony from ¥5,400 to ¥2,300.
Sony’s electronics sector includes sales of information and
telecommunications equipment, including cell phones, computer displays,
personal Digital
assistants that exhibited a 2% sales
Increase to ¥303.6 billion. The
field had a loss of ¥22.1 billion from a previous profit of ¥1.6
billion. The semiconductor
sector of the company also had a loss of ¥3.6 billion and components
declined to a loss of ¥26.7 billion.
Sony’s Chairman, Nobuyuki Idei maintains the company strategy:
enabling easy connection of its products such as computers, digital
cameras and audio players, and enhancing demand for such products through
promotion of Internet services. Cash
flow has been allocated to new Internet-related activities.
Despite the many downfalls Sony Corp. has encountered, there are
some analysts that feel the company’s performance will bounce back in
fiscal 2002. Hitoshi Kuriyama,
of the consumer electronics sector of Merrill Lynch Japan Securities Co.,
believes that as the economy becomes more stable and the improvement of
the infrastructure will lead to a recovery in profitability in the
conventional sector of Sony’s business.
The potential expansion of new business could also result in fiscal
2002. This innovative company
has the ambition and capabilities to make technological advancements that
all markets will benefit from. Although
this may be an embarrassing time for
Sony it has yet to give up on the targets it has set for itself
over the next fiscal year.
NEC
Shows Increase in Mobile Sales
NEC fiscal first-half 2002 results
have shown a 36% increase in sales for their mobile phone systems and
handsets. NEC, best known as
a chipmaker, has established their main
market in Japan where there has been a positive response to the I-mode
service NTT DoCoMo has brought to the mobile phone industry.
Third generation wireless service is being offered on a limited
bases by DoCoMo beginning October 1.
NEC has attributed the
39% increase in network
infrastructure sales to 3G network buildout.
The I-mode service is a partial step towards total 3G wireless
service being offered on a large scale.
U.S. and Eurpopean handset providers are striving to achieve the
success I –mode has brought to Japan.
The reality of other countries gaining from what third generation
wireless service has to offer looks a ways in the distance.
NEC is enjoying what DoCoMo’s limited version of 3G has brought
to them in the Japanese market. Ericsson,
of Sweden, along with its rivals Motorola and Nokia must delay the
building of the new 3G network infrastructure until service providers
resume spending on their networks. Spending
on 2G networks has been shaved down by operators, as a result forcing
companies such as Ericsson, Motorola and Nokia to halt 3G buildouts.
Ericsson recently formed a mobile phone joint venture with Sony and
has reported strong initial sales of new products.
IC
cards ensure ID
NTT Communications Corp. has
announced that it will launch Internet access service during the month of
November that will use integrated circuit (IC) cards to ensure user
identification. The “Saftypass” is aimed to gain 1 million users by the
end of March 2003, as cited by Nippon Telegraph and Telephone Corp.
Consumers will be able to transmit data securely over their local
area network or between their offices and home with the company’s new
network platform. It is the
hopes of NTT Communications the new secured platform will lead the way to
business-to-business and business to consumer trading expansion.
Yahoo
Japan brings Good News to the IT market
Despite
falling advertising sales, Yahoo Japan Corp., Japan’s top
Internet portal, announced that sales and profits doubled in the first
half due to the new high-speed Internet access service offered. The company appears to be diverting its business model
towards that of an Internet service provider and portal business.
Sales for parent company Internet investor Softbank Corp.,
which holds a 50.8 percent stake in the company, in the months of
April-September increased 119.8 percent from the prior year to ¥11.87
($98 million). It has been
reported that operating profit is
¥4.16 billion yen, nearly doubling.
Net profit increased 103.7 percent to ¥2.39 billion.
Beginning on September 1st Yahoo
Japan collaborated with
Softbank Corp. to offer a cut-rate asymmetrical digital subscriber
line (ADSL) to gain additional growth.
It has proven successful as of Monday, October 29, when there was a
change of 2.18 million yen of the company’s shares from September’s
year low of 1.82 million. The
broadband Internet service, “Yahoo! BB”, brought the company ¥3.8
billion in sales and 130,000 users. The
service was able to attract the likes of many customers because it offers
download speed of up to eight megabits per second, at a monthly charge
that is much less that of former telecom monopoly Nippon Telegraph and
Telephone Corp. Pre-registrations
for Yahoo Japan’s ADSL service have reached 1.12 million despite the
company being forced to push back the launch date due to delays in setting
up of the network. Yahoo
Japan has also stated they have made two minor adjustments to the
accounting methods used. Consolidated results will now appear on the balance sheet and
sales commission payments from sales will no longer be deducted.
Numbers
over 1 Mil. Mark
There has been a 19% increase from the end of June in the number of subscribers to cable TV Internet access services in Japan bringing the number over the one million mark. The Ministry of Public management, Home Affairs, Posts and Telecommunications made the announcement that as of the end of September there was 1,151,000 subscribers. The compilation of Internet access services being accessed using regular telephone lines reached a total of approximately 19.23 million. In comparison to the prior years total of 14.54 million there was an increase of 32.3 percent. In addition, the total number of those accessing Internet services via cell phones, including the I-mode,Ezweb, and J-Sky services, has reached 44,937,000 over September’s 2000 that was 19,679,000 it more then doubled.
Sanyo
Goes Detergent Free
Sanyo
Electric Co. has
developed a revolutionary detergent-free washing machine.
The machine operates on a “zero-detergent” setting allowing the
machine to create electrolyzed water from tap water.
Free-radical oxygen is generated during the process that has
cleansing properties and hypochlorous acid with disinfectant elements.
Sanyo claims the ultrasonic waves and electrolyzed water produced
can clean clothes lightly soiled in about an hour.
The product was released on August 1, 2001 with a retail price
range of ¥118,000 to ¥128,000 and has been successful in the consumer
market. The billion-dollar
detergent industry argues that the machines cause possible fabric damage
and are do not efficiently cleanse clothing.
In a recent survey of consumer satisfaction, 90 percent of
consumers cited satisfaction with the product.
Sanyo also points out another benefit of the machine is that it
protects the environment against chemicals found in detergents and soaps.
Two months after the machine was introduced, Sanyo reportedly sold
30,000 units. This sales
figure is approximately 50 percent greater then the introduction of past
washing machines. The sale of
laundry detergent is a key source of revenue for many companies such as Kao
Corp. and Lion Corp. The
success of this new innovation will hurt the industry even more
considering sales have dropped in recent years due to price competition
and deflation. The obvious competition amongst washing machine makers,
detergent producers and possibly textile makers could eventually turn into
a feud. A definite measure of
efficiency has yet to be reached because of disagreements on “the notion
of being dirty differing among consumers”.
Therefore, The National Consumer Affairs Center of Japan has stated
that it is in the interests of the consumers for a decision to be reached
on the degree of dirtiness. It
has been confirmed by the Fair Trade Commission that Sanyo is not
misleading the consumer industry with the machine’s advertisements.
Intel
Introduces low-power server chips
The Comdex trade show is the venue
chosen by Intel for the release of new low-power chips designed for
super-thin servers. The
Pentium III model is a chip taken from the company’s product line for
portable computers, which share many of the same constraints as
“ultradense” servers. The
introduction of these systems is in an attempt to gain back the market
that Transmeta gained by being the first to introduce low-power designs in
the mobile market and then in the low-power server market.
In addition, Intel will also complete a dual-processor design for
ultra-low power servers, while Transmeta can only serve single-processor
systems. Intel’s ultra-low
voltage mobile CPUs fun below the 1GHz mark, the downfall is that running
on lower voltage also means sacrificing speed.
Intel’s general manager announced that the company will release,
in March, ultra low voltage Pentium III chips made on the 130-nanometer
manufacturing process with chipsets to accompany.
The majority of the difference between the ultralow voltage server
and mobile chips lies in the chipset that brings information between the
CPU and the rest of the computer. A
low-power chipset that will be able to accommodate memory up to 2GB using
error-correcting code will be released by Intel at Comdex to ensure that
data is not disrupted during its transmission into memory.
New
Street Light System
On November 1st Japan’s Matsushita Seiko Co will introduce the development of a streetlight system that runs on wind and solar power. The company claims the system will eliminate the need for a power source and allow streetlights to be installed where it would otherwise be difficult to construct a power source, such as on remote islands and parks. The system uses the sunlight to generate power during the day, continuing through the night with the assistance of wind. A storage battery inside the support pole of the light stores any excess power that is provided. The light source is provided by Light-emitting diodes (LEDs) which last longer then standard fluorescent bulbs. The system, with target sales of 1,000 units in the first year, will cost ¥1.5 million.
Increase
In PDP-TV market Brings Flat Screen Into Homes
Flat screened TVs have begun to be
introduced into the household market. Plasma display panels that are less
than 10cm thick but have 32 to 50 inch screens have a large role in making
flat-panel TVs popular. PDP
TVs are easier to produce and have brighter screens then liquid-crystal
TVs. Price competition has
erupted due to several consumer electronics makers entering the market
this year. Matsushita
Electric Industrial Co. released the TH-42PM50/S, a 42-inch PDP TV
equipped with a receiver for digital broadcasts via broadcast satellite.
The model does cost approximately double the price of the same size
cathode-ray tube TV, however, it is priced significantly lower then the
model prior released. NEC
Corp. and Pioneer Corp. have had PDP TVs on the market since 1996, selling
primarily for the public display purpose due to the high cost.
In April, Hitachi Ltd. Released the W32-PD2100 which is the first
32-inch model in a field dominated by 42 to 50– inch models.
Sony Corp. and Toshiba Corp. are also debuting models intensifying
competition. NEC plans to
differentiate itself by introducing PDP TV models with larger screen.
According to optimists the market could increase to
4 million units by 2005.
Joint
Platform Brings Interactive Television
to the Market
Japanese consumer electronics manufacturers have announced the launch of a joint platform that will bring interactive television into the consumer market. Interactive television is a mix of regular television with simultaneous interactivity of the Internet. Ep Corp., a joint venture that will operate the service, will provide a TV platform that will allow users to watch both conventional TV programs and programs received by service providers received via satellite of Internet. However, in to receive the service the user must purchase a tuner that has 40G-byte hard disk drive. TV programs can be automatically recorded onto the hard disk drive on a regular basis giving the user the ability to customize the service to personal tastes and interests. The service will allow the user to, I.e., purchase or trade stocks while watching a financial broadcast simultaneously. Investors in Ep Corp. include Toshiba Corp.; Matsushita Electric Industrial Co. Ltd; Hitachi Ltd.; Sanyo Electric Co. Ltd; Sharp Corp.; NEC Corp.; Fujitsu Ltd.; IBM Japan Corp.; and Sony Corp., in addition to twenty-one other major companies. The companies are hoping that this service will revive the digital television sector by offering the first service in the world to seamlessly combine digital broadcasting an, Internet access and data storage in a hard disk drive. Critics within the industry are uncertain whether this is a realistic service to introduce. Consideration must be give towards, cost-effect boxes, pinpointing useful services and compelling interactive content.
BIO-SCIENCE
DEVELOPMENT
Mitsubishi
Chemical to Produce Carbon Fullerene
Nanotechnology
is the emerging field of carbon, a key organic molecule in life, into the
form of nanotubes and burkministerfullerenes.
Nanotubes consist of rolled up sheets of carbon hexagons and are
about 10,000 times thinner than a human hair.
There is the potential for the nanotubes to be used in minuscule
wire or ultrasmall electronic devices.
Mitsubishi Chemical and trading house Mitsubishi Corp., presently
the industry leader, sought the insight of scientist from the
Massachusetts Institute of Technology in the mass-production of fullerenes. The incineration method was discovered which incompletely
incinerates benzene and other aromatic hydrocarbons under low pressure.
“The result is soot that is rich in fullerenes with a yield of
20% by weight, which is 5-15% points higher than yields from other
methods.” Presently, fullerenes cost several thousand yen per gram.
It is calculated that the price will have to drop to the ¥100
level before they can be used on a wider scale.
In order to promote the development of applications, MCC is
currently sending samples to more then twenty companies.
By 2004, Mitsubishi Chemical will have the capacity to manufacture
1,500 metric tons of fullerenes a year.
The
Beginning of the End of Hair Loss
Male
pattern baldness is cited to effect 10-15 million males in Japan alone.
Although this “disorder” is not a disease, but is related to
the activity of certain genes and the male hormone testosterone, many men
long a cure that will end hair loss for good.
After the release of Minoxidil, which was the first substance to
show clinical proof in effecting hair growth, the market for hair-growth
promoters has shown tremendous growth.
Taisho Pharmaceutical Co. of Japan markets Minoxidil under
the name RiUp, the U.S. sells the substance as Rogaine.
The success of these two brands has prompted a variety of other
companies in Japan to research hair growth promotors.
The study of substances that bolock various steps in the hair loss
process could lead to a depletion of male pattern baldness in the future. Shiseido Co. and Kao Corp. have found genes
that are directly related to hair loss and thinning, hopefully leading to
a complete identification of all genes related in the process. Saint Johnswort, derived from a plant, has demonstrated
the ability to promote hair growth through research conducted by Kao Corp.
The company has synthesized a compound similar to Saint Johnswort
that has exhibited the same effect, possibly just as effective as RiUp.
The company plans to have a commercial product in the market during
2002. Shiseido plans to continue researching all of the genes
involved in hair loss possibly leading to the commercialization of a
product in another five to
ten years. A compound that is capable of activating and stimulating the
proliferation of the matrix cells in the base of the hair follicle that
are the source of hair has been found, by Kyowa Hakko Co., harbored in
apples. Kyowa Hakko Kogyo
Co. cited that the substance, present in 50 mg per liter of apple
juice, has proved to increase the number and thickness of scalp hairs by
70% in clinical tests.
Device
to Inject Atomic Clusters
The
research and development company, Tsukuba nanotechnology Co., has
developed a machine that has the capability of producing and injecting
atomic clusters of freely variable size.
“An atomic cluster is a “nanoparticle” comprising an
aggregate of several to several thousand atoms.”
They differ in terms of characteristics from the individual atoms
of the bulk material. Prior
to this development, systems could only inject clusters made from groups
of several atoms. This new
device enables the clusters to
be scaled freely in size ranging from one atom to 10,000 atoms.
The system offers a wide variety of applications and holds the
potential to fabricate extremely small semi-conductor devices.
Automakers
rev up search for ultimate clean car
By the year 2010 The Ministry of Economy, Trade and Industry has set the target for the number of fuel cell vehicles in use at 50,000, by the year 2020 there should be 5 million. The concerns of global warming and tougher environmental restrictions are forcing the automobile industry to develop a car that does not operate on gasoline. The industry has turned to fuel cell as the means of power, however, achieving the government-set goal will not be easy. Depending on the method of supplying oxygen there are two types of fuel cell cars, one that can carry a hydrogen tank onboard or one that uses an onboard fuel converter to derive hydrogen from methanol or petroleum. In 1999, Honda Motor Co. introduced its first test fuel cell vehicle, since then it has released three more all demonstrating the advantage of the in hydrogen-tank type. The FCX-V4, Honda’s latest model, has achieved performance close to that of conventional gasoline-powered care, and reaches a maximum speed of 140 kph and distance of 300 km/tank. Toyota Motor Corp will also be adopting high-pressure hydrogen storage tank for its fuel cell model and plans to have a commercial debut based on the FCHV-4 model in 2003. Honda aims to commercialize the production of fuel cell cars in 2003 on a limited scale. The company has acknowledged that it will take decades to achieve mainstream vehicle production. of gasoline-powered vehicles. A major consider taken into this time frame is based on the construction of hydrogen stations in strategically accessible and large scales
Mazda
Motor Co., a Japanese company, is favoring fuel cell cars using
methanol-derived hydrogen. This
method has carbon dioxide emissions roughly at 60 percent that of
gasoline-supply powered vehicles. The
development of the fuel cell vehicle is very costly and time consuming.
It is uncertain whether Japanese automakers will win in this highly
competitive market. The
research of hybrid cars, vehicles that run on gasoline engines and an
electric motor, is underway to determine whether this technology can be
applied to fuel cell cars. A
possibility includes a fuel-selecting system that selects the fuel choice
on an automatic basis depending on driving condition. Japanese automakers feel very strongly that technology is key
to producing high-performance fuel cell vehicles.
There is a slow uptake on the commercialization of low-emission
cars, those running on compressed natural gas or electricity, this does
not leave much to be said in regards to the release of fuel cell vehicles
in the near future.
The
Future of Fuel Cells in Portable Information Devices
Japanese
and U.S. companies are working diligently to develop fuel cells that are
compact and light enough in weight to power small consumer appliances.
Fuel cells generate electricity through a reaction of hydrogen and
oxygen giving hope for use as a clean energy source for motor vehicles and
homes. The issue at hand is
that in order to keep devices running for an extended period of time a
cumbersome energy source is required.
However, the U.S.
venture company Manhattan Scientifics Inc. debuted a film-type fuel
cell that is only 3 mm thick at a trade show for portable information
devices in Yokosuka, Kanagawa Prefecture.
The prototype was a cell-phone charger that uses the fuel cell to
charge a phone on a continual basis, using
oxygen from the air and hydrogen provided from a small canister of
methane. Approximately 20 grams of methane can be held in the
refillable canister, supplying the handset with power for about a month.
The power supplied by fuel cells in comparison to a standard
lithium ion battery is six to seven times longer.
Manhattan Scientifics is working with Mihama Corp, the Tokyo
chemical-products trader, and
has called on chemical and semiconductor companies to conduct joint
research in the practical application of the fuel cell.
A thin resign film placed tightly between electrodes and a platinum
catalyst that has holes filled with electrolytes is inside the charger.
It is the platinum that catalyzes the separation of methane and the
release of hydrogen, which then reacts with oxygen to generate 100
milliamperes of current. Companies
in Japan are studying the concept of using carbon nanotubes and
buckmisterfullerenes for fuel cells.
A fuel cell half the size of a business card has been developed by NEC
Corp. Instead of
graphite, carbon nanotubes are
used for the electrodes which enables the fuel to come in contact with a
larger surface area of the
catalyst, this gives a 20% increase in power output.
SEMICONDUCTOR
Japan
chipmakers put operations on hold
In
an attempt to meet the challenges the semiconductor sector of the market
is facing, because of the status of the economy worldwide,
Fujitsu, Japan’s largest chip maker, and
NEC are temporarily idling several semiconductor plants in
Japan.. Fujitsu has stated
that it will halt operations for five days at three major microchipmaking
facilities in Japan and will place 5,000 workers on an idle status.
Fujitsu will pay 90 percent of the base salaries of those workers
affected by the shut down of facilities.
Many Japanese chipmaker’s are operating plants at a 70
percent or less capacity with future outlooks still uncertain. NEC, the third-largest chipmaker in the world, shut a wafer
processing plant on Japan’s southern island of Kyushu on Friday and will
idle the facility until Wednesday, closing another three chip assembly
plants for four days. This
will affect approximately 2,700 workers also to receive 80 percent of
salaries from the company. The company has already consolidated three
wholly owned chip-assembly facilities in Kyushu and plans further
consolidation of two NEC Yamagata Ltd. Plants by next spring. A delay has
been placed on the DRAM chip joint venture that is set to occur between
NEC and Hitachi for six months and
plans to decrease wafer processing capacities are also being implemented.
All five chipmaking conglomerates in Japan have announced that there will
be profit and restructuring measures taking place and have already
occurred. Hitachi, Toshiba,
NEC and Fujitsu are expecting large net losses for the business year
through March of 2003. DRAM’s
are seen as the primary cause of the worsening earnings foreseen over the
next year. The decline in
personal computer sales and increase in competition forced producers to
push down the prices of Japanese DRAMs
a substantial amount, accounting for an industry loss.
The supply-demand balance for memory chips has been greatly
affected by the global IT slump leaving companies hoping for profit in
other sectors.
Korean
DRAMs put chip firms on defensive
NEC
Corp., Toshiba Corp., Hitachi Ltd. And
Mitsubishi Electric Corp. are planning to file a complaint
with the South Korean government charging the world’s largest DRAM
maker, Samsung Electronics Co., and Hynix
Semiconductor Inc. of dumping DRAMs on the Japanese market.
This is something the Japanese have criticized the U.S. in the past
fore saying that they have been invoked on ambifuous grounds.nnJapanese
chipmakers feel that manufacturors in South Korea are in seeking a larger
market share in Japan by selling at extremely low prices.
It is uncertain whether the government will be accepting of the
countries plea for protection, although a halt on price-cutting by South
Korean companies should occur just in time for the demand of the Christmas
season. The scenario does
indicate that Japanese firms are no able to compete with foreign market
prices under the present economic conditions. The fear is that the companies will have to resort to
withdrawing from the DRAM market altogether.
Measure are being taken by Japanese chipmakers to shift focus away
from DRAM operations means of core business.
If it is found that South Korean firms are in fact “dumping”
into the Japanese market, injuring the domestic industry, the Finance
Ministry will team up with the Ministry of Economy to impose a
counterfailing tariff.
Waves
in Chips
An advanced microscope capable of magnifying atoms showing concentric circles has been developed. NTT Basic Research Laboratories has been successful in observing electron waves using an advanced cutting-edge microscope capable of magnifying atoms. The waves form concentric circles like those created when a stone is thrown into a pond. The team plans to make more detailed observations of the waves and make possible the development of transistors with low power consumption and quantum computers. To create smaller semiconductor elements or develop new chip structures, researchers must have an understanding of the double nature of electrons.
STRATEGIC ALLIANCES
Sony
Upgrades PlayStation2 Net Capabilities With Deals
On
May 15, Sony Computer Entertainment Inc. announced an alliance with
American Online, the Internet arm of AOL Time Warner Inc.
and the largest Internet access provider in the U.S. The agreement will
allow PlayStation2 consoles to access AOL, turning the game console into a
home terminal with expanded capacity to handle streaming video and
telecommunications. E-mail and netsurfing through AOL services will be
made available to users by winter in the U.S. and later in other parts of
the world. Sony Computer
signed an agreement, on May 16, with MacroMedia Inc., a leading
developer of streaming video software, and RealNetworks, Inc.,
known for its Web design software. The deal includes the development of
proprietary software in PlayStation2 consoles, which will enable the
distribution and reproduction of images and music. Broadcast and computer
functions will be released later this year, giving PlayStation2 the
capability to handle movies, music, the Internet, and broadcasts.
With these deals, Sony hopes to build up the console’s
capabilities ahead of competition from Microsoft Corp., the U.S.
based software giant. Microsoft is expected to enter the game-machine
market on Nov. 8 with the release of its Internet capable Xbox console.
Automakers
Spend Heavily to Raise Overseas Output
Eleven
major motor vehicle makers are raising group capital spending by 12.1%
year on year to ¥1.89 trillion in the current year through March in order
to expand their overseas output. They
also plan to increase allocated funds to research and development 7.9%
from fiscal year 2000 to ¥1.55 trillion, a record amount.
The automakers believe that, despite a tough business climate,
developing overseas markets and more environment-friendly automobiles is
their only hope for continued survival in the future.
Toyota Motor Corp. plans to expand a plant in Indiana and
build a new factory in Alabama. Nissan
Motor Co. will boost capital investment to ¥315 billion, up 53.2% and
increase output at an engine factory in Tennessee to fund construction of
a new plant in Mississippi, expected to come onstream in 2003.
Honda Motor Co. will construct new plants in both the U.S.
and U.K. and boost productivity at existing sites.
Short
News
-
Jamco Corp.
and Delta Beta of the U.S. are collaborating in the development of
an in-flight-video-on demand (VOD) system that will be smaller and lighter
then the existing systems presently used by airlines.
Cumbersome large-scale servers are required to operate conventional
VOD client/server format. The
new system will eliminate streaming data on demand by transmitting signals
on a continuous broadcast format. Delta
Beta will provide technology that will allow passengers to view content at
their leisure.
-
Hitachi
High-Technologies Corp.will
set up a clean room in Silicon Valley, California by the end of October to
promote the sales of semiconductor fabrication machines and other
equipment. This room will
claim fewer than 100 particles with a diameter of more than .5 microns per
cubic foot. Equipment such as
scanning electron microscopes, inspection machines and other equipment
will be brought into the clean room..
-
In Illinois, Aisin Seiki Co., will set up a plant in order
to increase the local production of auto parts.
By next July the company will start producing sunroofs and door
parts that will target ¥17.3 billion in sales in the year 2005.
Strong demand is expected from Toyota Motor Corp. and Honda
Motor Company.
United States in Japan
Celera
Genomic Group, U.S., Expands To Japan
Celera
Genomic Group, a U.S. biotechnology company that assisted in establishing
the sequence of the human genome, has plans to begin its first overseas
operation in Tokyo. The firm
intends on using the establishment of the firm in Japan as a means to
advance cooperative research with countries throughout Asia, such as
Singapore, South Korea, and Taiwan in genome-based pharmaceuticals.
Two major Japanese firms, Takeda Chemical Industries and Yamanouchi
Pharmaceutical Co., have already been given access to Celera’s database. The company plans to use the genome data in its archives to
develop pharmaceuticals and has plans to acquire a pharmaceutical venture
company in the United States by mid-November.
Celera hopes that branching out to Japan, the world’s second
largest pharmaceutical market, the firm will be able to expand present
domestic business links to promote the development of genome-based
pharmaceutical products.
Microsoft
Corp. and NEC offer Combined Software Package
Microsoft Corp. and NEC Corp. have
confirmed a comprehensive alliance in information systems for corporate
clients. This move marks
further industry consolidation to meet heightened competition and the
decrease in the demand for home and business-use personal computers.
To support the new alliance, NEC will set up an in-house technical
team focused on software development and system building, maintenance and
management. Within a year,
NEC will designate about 300 of its group employees to provide system
consulting and support services. The
partners will offer Microsoft’s Windows 2000 and other software in a
package with the Japanese computer maker’s servers and other hardware to
build, maintain and manage corporate systems, senior executives of both
companies. NEC and Microsoft
will jointly test NEC’s 64-bit Intel architecture server with
Microsoft's 64-bit Windows. They
will also test storage-area network and database products.
Short
News
Zucotto Wireless Inc,. A U.S.
developer of semiconductors for mobile phones, and eValley Inc., a
Tokyo software developer , have formed a partnership to partnership to
provide mobile Java solutions. Java
programs are produced using Zucotto’s cell-phone chips which the company
claims reduces energy consumption by more then 20% and increases
processing speed to 20 times that of conventional microprocessors running
middleware. Zucotto Wireless will combine their energy-efficient
microprocessors with browser software by Evalley to create mobile systems
that can handle large volumes of data at high-speed. This will enable users to access and view Web sites or watch
movies on mobile terminals.
Minigrip/ZipPak,
a U.S. firm, will market, in conjunction with Mitsubishi Corp. the
company’s reclosable bags in Japan by the end of the year. The company
is the leading producer of sealable bags for food products.
The two companies will establish a joint venture to be capitalized
at ¥70 million, with Mitsubishi owning a 40% interest and Minigrip/Zip-Pak
holding the remainder. Annual
sales of ¥2 billion are expected from the new entity in three years.
The market for reclosable bag, used mostly for candy in Japan, is
estimated to triple from ¥2 billion presently.
Janssen-Kyowa
Co., a Japanese subsidieary of Johnson & Johnson of the U.S., and
Kyowa Kakko Kogyo Co. has obtained approval to market a fentanyl patch
used to provide pain relief for cancer patients.
Two companies jointly carried
out clinical testing of the product, which is taped to the skin and
is an alternative to morphine
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