JPRS ID: 9923 JAPAN REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000400040035-5
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 57
• Document Creation Date: November 1, 2016
• Sequence Number: 35
• Content Type: REPORTS

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JPRS L/9923
20 August 1981
Ja an Re ort
~ p
(FOUO 49/81)
~BIS FOREIGN BROADCAST INFORMATION SERVICE
q
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NOTE .
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JPRS L/9923
20 August 1981
JAPAN REPORT
(FOUO 49/81)
CONTENTS
SCIENCE AND TEQiNOLOGY
Oil Development in Japan Reviewed
(DIAMOND'S IN~IUSTRIA, Jul S1) 1
Machine Industry Status, Prospects Reviewed
(DIAMOND'S INDUSTRIA, Jul 81) 3
Japan, U.S. Compete Over IC Market Share
(NIKKAN KOGYO SHTMBUN, various dates) 10
Japan P1ans To Develop Nuclear Fuel G~cle
(NIKKEI SANGYO SHIMBUN, various dates)..........~ 26
Japan's Biomimetic Industry May Lead the World
(Zenichi Yoshida Interview; NIKKEI BUSINESS, 29 Jun 81)....... 38
Enterprises in Genetic Technology Examined
(DL4MOND'S INDUSTRIA, Jul 81) 43
Shipping Industry Reported on Course to Recovery
(BUSINESS JAPAN, Jul 81) 48
Prospects of Semiconductor, Integrated Circutt Industry
Examined
(Gene Gregory; BUSINESS JAPAN, Jul 81) 50
Paper-Zhin i~ithium Battery Developed
(DIAMOND'S INDUSTRIA, Jul 81) 54
- a - [III - ASIA - 1].l FOUO]
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SCIENCE AND TECHNOLOGY
OIL DEVELOPMENT IN JAPAN REVIEWED
Tokyo DIAMOND'S INDUSTRIA in English Vol II No 7, Jul 81 pp 19-20
~Text~
Teikoku Oil Co., Esso Sekiyu Kai- off the coast of Fukushima Prefecture,
hatsu Co, and East Japan Oil Develop- from which natural gas will be sent to
ment Co. announced on May 19, the Hirono Thermal Power Station
- 1981, their plan to jointly develop ~hrough a pipeline. The recoverable
Joban offshoce oil and gas fields on reserves are estimated at 3,500^~5,500
the Pacific coast, which they had been million cubic meters.
studying to exploit on a commercial The decision to develop the natural
basis. The project was ori~nally gas fields is in line with the changes
_ undertaken jointly by Teikoku Oil and in the oil supply situation in the
Esso Sekiyu Kaihatsu, which test- world. With the sharp rises in oil
drilled nine wells in the area until prices, development projects have
1974 and found the existence of become more profitable than before.
natural gas. But the development of Japan depends on imports for most of
oil and gas was postponed because of its oil needs. Oil has been sustaining
the pref'erence given to other areas Japan's economic development. But
under Esso's global strategy. domestically-produced oil accounts for
In 1978, East Japan Oil Develop- only 0.2% of the demand. Not only
ment, a joint company of Toa Nenryo ~harp increases in oil prices but also
Kogyo and General Sekiyu, took an unstable supply pose a serious
over 15% of the shares belonging to problem for Japan.
. Esso Sekiyu Kaihatsu which owned In Japan, the ratio of oil used for ~
- 50�la of the total shares. Ever since, industrial pucposes to the total is
the three companies have been jointly~ much higher than in other industrially
studying the exploitation of oil and advanced countries. Although Japa-
gas on a commercial basis. nese industries have been coping with
Since they have agreed with Tokyo the situarion by reducing oil consump-
Electric Power on the supply of the tion, it has become an urgent matter
main product, natural gas, to the to develop oil resources in Japan
Hirono Thermal Power Station, begin� itself.
ning in 1984, the oil and gas devel- Oil development with Japanese
~ opers have decided to start the con- funds has been undertaken abroad but
strucrion of producdon facilities. there are risks which might be brought
Under the plan, a platform will be about by political instability. There-
constructed at a point 41 kilometers fore, oil development in Japan and
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waters around the country has been ~elds, which yield mostly crude oil,
activated rapidly. The main energy are attracting the attention of indus-
_ resource being developed in Japan is trial circles as having the possibility
natural gas. The annual production is of becoming Japan's largest oil fields.
about three million kiloliters in crude The sedimentary basin in waters
oil equivatent. About 80% of the total
is produced on land but attention is near Japan, where oil and natural gas
being paid to waters around the can be prospected, is known to total
country, especially to the condnental about 370,000 square kilometers, or
shelf, since oil resources on land have as large as the land area of Japan. And
already been totally surveyed. the areas for prospecting spread widely
At present, the only oil and gas on the continental shelf down to the
- fields in waters around Japan are the Water-deptii of 200 meters and on
A~a offshore fields of Niigata Prefec� continental slo~es 200 meters to 2,000
ture on the Japan Sea coast. This meters deep. According to a survey
proje;,t is being undertaken jointly by by the Japan National Oil Corp.,
a subsidiary of Japan Petroleum recoverable reserves in waters around
Exploration, Japex Offshore Co., and Japan total about 1,304 million kilo-
Idemitsu Oil Development Co., a sub- liters (in crude oil equivalent), while
sidiary of [demitsu Kosan. The oil and the reserves on land are 200 million
gas fields were discovered in 1972 and kiloliters. Development of the re-
' production began in 1976. sources in the sea is deemed to be
Furthermore. Alew Japan Sea Ex- more promising.
ploradon, a subsidiary of Idemitsu Oil The Japanese Government, which
~ Development, found oil in the North started the fifth five-year domestic oil
� Aga offshore concession, an aeea a and gas developmer.. project, begin-
~ little north of the Aga offshore fields, �~g ~ Ap~, 1980, intends to find
after digging two test well~ ir. 1973. 6~llion kiloliters of reserves on land
The company conducted detailed and 96 million kiloliters in waters in
physical prospecting there, began drill- the five-year period. And the Govem-
ing a third test well in March, 1981, ment plans to produce 2.3 million
and successfully struck oil in May. ~ol~ters on land and 5.7 million
The test well, which is at the water� kiloliters in waters, or a total of
depth of 90 m, was dug 2,200 m into 8 million kilaliters in fiscal 1985.
the seabed, where six oil bearing The Govemment is to test-drill wells
on continental slopes deep in the sea
formadons were discovered. And for the first time.
1,50(Y~1,500 barrels of crude oil were Test drilling based on the 1978
obtained daily from the lowest forma- Japan�South Korea agreement on the
tion. At present, the conipany is ~evelopment of continental shelf is
conducting tests on upper forma- ~s~ to start this year. Oil development
tions and plans to dig a fourth wcll in in waters around Japan is quickly
autumn to survey the spread of the oil g~~g momentum.
formations. The North Aga offshore
COPYRIGHT: iliamond Lead Co., Ltd. 1981
CSO: 4120/291
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SCIFNCE AND TECHNOLOGY
MACHINE INDUSTRY STATUS, PROSPECTS REVIEWED
Tokyo D7AMOND'S INDUSTRIA in English Vol 11 No 7, ?ul 81 pp 9-14
[T~tl
Steady Growth
~ Reflecting the unclear business out- Investmeat plans by big manufac-
look, smail-sized enterprises lack turers are centered on technological
- incentives i~ equipment investment. development, the development of new
An increasing number of them are products, energy conservadon and
delaying the time of planned invest- ]abor saving, while some manufac-
ment or reducing the size af invest- turers in thc electric appliance, auto-
ment. Some govemment officials mobile, steel and petrochemical
foresee that this trend will continue industries plan to expand their produc-
- through the first half of 1981 but they tion facilities.
are not optimistic about the situation This provides a bright business out-
in the following half-year period. look for machinery manufacturers.
However, there are some exceptions. According to the Japan Machinery
Many medium-sized manufacturers are Federation, the production of general
eager for labor saving, energy conserva- machines, including machine tools, in
tio� and research and development, fiscal 1980 totaied 3f11,807,537
and most of them are planning on million (including some approxima-
investments ranging from ~500 mil- tions) and exports totaled ~3,700,699
lion to ~I,Q00 million. This trend, in million. They represented increases of
fact, is even more conspicuous among 6.4% and 20%, respectively, over the
big businesses. The Government previous year. Business growth in fiscal
estimates that plant and equipment 1981 is expected to be even faster
investments in the private sector in than the 1980 performance. The total
fiscal 1981 (Anril, 198] March, output for fiscal 1981 is estimated at
1982) will increase over the previous ~12,450,129 million, up 5.4%, and
year by 7.3%a in real terms and 10.7% exports at ~3,987,000 million, up
in nominal terms. Business quarters 8.1%.
think this outlook is too bullish. Construction machines hold a large
- But a majority of business executives portion of the output. Their total
believe that the growth rate will be output is estimated at ~1,293,400
~ 5% or sc, ln other words, they have million (up 7.7%), refrigeration
a fairly strong desire for equipment machines at ~1,132,000 million (up
investment. 3.1%a) and chemical machines at
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~1,032,900 million (up 7.3%). Among was closed down, putting an end to its
high growth products are printing 90-year history of operations co a
and book binding machines (output: chagrin of many Yokohama citizens.
~176,900 million, up 14.6%), packag- The company says that its site is too
ing machines (~214,500 million, up small for the current operation. It
12%), hydraulic equipment (3F220,000 also tumed unsuitable for a heavy ,
million, up 11.1%a) and secondary industry, because houses and stores
metal working machines (aF210,000 were built too close to the site in the
- million, up 10.5%). The top eamer postwar era. The shipyard's workers
in exports is office automation are now busy building a new plant on
machines (~604,700 million, up a 330,000-square-meter site at the
13.1%), followed by consxruction southem end of Yokohama. It is
machines (~541,900 million, up scheduled to go into business in April,
14.4%), intemal combustion engines 1983, as the Kanazawa Plant of Yoko-
(~448,000 million, up 9.4%), chemical hama Shipyard & Engine Works to
machines (~F380,900 million, up 63%), manufacture boilers, diesel engines and
metal machining tools (~f290,000 other types of heavy machinery.
million, up 7.4%) and textile machines Mitsubishi is reportedly sinking about
(~E193,400 million, up 5%). ~Zp,ppp million in the new plant -
High growth products in exports the biggest investment in a single plant
are hydraulic equipment (~if8,500 by the company.
million, up 21.4%), printing and book Mitsui Engineering & Shipbuilding,
binding machines (~57,000 million, which parallels Mitsubishi Heavy
- up 15.4%), construcdon machines Industries in shipbuilding, is now
(~541,900 milliori, up 14.4%), mining expanding business in overland
machines (~29,200 million, up machinery. Its plant and equipment
12.3%), pumps, biow~rs and compres- investments in fisca! 1981 are
sors (~102,900 million, up 11%) and estimated at about ~12,000 million.
packaging machines (~f 19,500 million, More than half of it is to be spent for
up 13.1%). the construction of the Ohita Plant
] Behind the business prospects are in Ohita Pcefecture, Kyushu. Constroc-
the~ facts that big manufacturers are tion work began in October, 1980,
continuing investment to cut energy and is scheduled to be completed in
consumption, save labor and raise October this year. It is expected to
pr~ductivity and that many firms are manufacture bridges, sluices, tanks,
also spending money to shift the fuel oil drilling rigs and the like.
from oil to other sources, control Fujitsu Fanuc, a subsidiary of
polluti~n and raise safety standards Fujitsu (a top ranking computer maker
in their plant operations. In export in Japan), is known as a maker of pre-
business, the Japan Machinery Federa- cision machine tool systems. This com-
tion holds a view that machinery pany recently built a new plant
exports will increase at a fairly fast equipped with FMS (flexible manufac-
pace, despite some trade frictions with turing system) on the outskirts of
importing countries, because Japanese Mt. Fuji (in Yamanashi Prefecture) at
machines have become competitive, a cost of ~8,000 million. This com-
Continuing Equipment Investment ~ puterized manufac:;:;ing system auto-
In early 1981, Yokohama Shipyard matically controls machining centers,
& Engine Works of Mitsubishi Heavy industrial robots and conveyor systems
and it requires no skilled factary
Industries adjacent to Yokohama Port workers for manufacturing. With a few
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men on duty, the system can run the of Japanese machines used for the
factory 24 hours a day. Several other economic expansion was manufactur-
machine makers are reportedly study- ed by using industrial know�how
ing plans to adopt FMS by investing imported mainly from the United
~ I,000 million ~~3,000 million. States and Europe. As though correct-
The machine industry is anticipat- ing this situation, Japanese manufac-
ing very much of equipment invest- turers have constantly spared part of
ment for research and development. their eamings during the past 10 years
According to a survey on 118 large- to assimilate foreign technolo~es or
and medium-sized manufacturers by develop expertise of their own,
the Nihon 1~'eizai, Japan's biggest especially new producdon tech-
- economic daily, the ratio of R& D nolo~es. As a result of their efforts,
investment to the total investment in an increasing number of manufacturers
fiscal 1980 stood at 6.3%, and the are switching their contracts with
like figure for fiscal 1981 is estimated foreign manufacturers to cross-license
at 8.1�'0. To cite a few examples, formulas or concluding new contracts
Komatsu Ltd., a leading const~-uction to export Japanese technologies to
machinery maker, plans to invest their foreign partners.
~5,100 million in R& D projects in A spokesman for Kato Works, the
fiscal 1981. This represents a 59.4~1o top maker of big truck cranes, said
increase over fiscal 1980. Similarly, that his company's products have no
Mitsui Engineering & Shipbuilding risks of hit or miss and are strong and
plans to invest ~3,000 million, up durable. He said that an IC-applied
24.4~~, and Toyoda Automatic Loom automatic control dev;ce ensures their
Works ~1,000 million, up 37%. safety operations. He attributed a
The contents of R& D projects shacp rise in exports of Kato's prod-
differ with manufacturers, but many ucts in the recent few years to their
of them are projects in new fields, high-quality standards, which, he
such as the development of equipment added, owe very much to advancement
for ocean development by a construc- in production technology.
tion machinery maker. This means To be sure, the stable quality of
that it is difficult to foresee exactly Japanese products is a feat of their
who is trying to do what. Thus it is producdon technologies. Especially in
difficult for machine makers to make recent years, "mechatronics" (a com-
a proper loug- or medium-term busi- bination of inechanical technology and
ness outlook. The situation also electronics) that saw a rapid advance
suggests that competition among in Japan has been sending out prod-
~ machine makers will intensify in ucts well accepted overseas.
coming years. Reflecting these realities, an increas-
International Cooperation ing number of machine manufacturers
in Europe and the United Stat~s are
Japanese machinery manufacturers approaching Japanese makers asking
have traditionally at;ached importance for supply of products or for joint
to plant and equipment investment development or joint production.
and spared no efforts to renew produc- Their inquiries vary, some for the
tion facilities and promote research supp~y of assembly units they cannot
and development. make with their techniques and others
During the period of more than for the supply of such specific parts.
10 years from 1960 to the early Recently, Kobe Steel received an
1970s, the Japanese economy achieved inquiry for the 230-ton rotor shaft of
rapid growth. However, more than half the world's largest generator
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(1,300,000 kVl~ to be installed at an According to the Japan Industrial
nuclear power plant in France. In Robot Association, the employment
Japan there are only Kobe Steel, of industrial robots in Japan rose
Sumitomo Metal Industries, Japan steeply in 1980; their production
Steel Works and one other firm that tot~led 21,000 units, worth ~60,000
have giant presses to make the prod- million. The production is estimated
uct. to rise to 3F300,000 million in value
In another casc, Toyo-sha, a in 1985.
mediumsized agricultural machine The industrial robot was used on
- producer, received an offer from an the producdon line in Japan a decade
- intemationally-known American com- or so ago. Its demand was very low
pany of fann machines for an OEM in early years. Its output stood at
' export of 4,000 smaI! farm machines a ~F26,000 million in 1977 and at
year. JGC Cocp., a leading plant con- ~f27,000 million in 1978. But the pro-
struction and engineering firm of duction jumped to ~42,400 million
Japan, concluded a long-term business in 1979. It is only in the past year or
tie-up arrangement to take part in two that the production showed big
intemational bids "continuously" for growth. The number of industrial
the construction of liquefied natural robots being used in Japan today is
gas plants with a U.S. firm. Shin Meiwa estimated at about 75,000 units,
Industry will soon begin supplying nearly 70% of the world's total. Most
arc-welding robots to a French firm of the industrial robots are working in
under an OEM formula. Fujitsu the manufacturing industry. The
Fanuc will also supply robots for biggest user is the auto industry which
~ machine tools to a West German firm accounts for 38% of the total in
under the same formula. Meanwhffe, value, followed by the electric equip- �
Kobe Steel recently acquired 10�/a of inent industry with 18%, the synthetic
the shares of an American construc- resin industry with 11%, the metal
tion company to join its world busi- product industry with 8%, the steel
ness strategy. Kobe has been produc- industry with 4%, the machine tool
ing machines for many years under a industry with 3% and other industries
license agreement with the said U.S. with 18%.
company. Behind the rapid spread of indus-
These are only a few of the recent trial robots are various conceivable
examples of technical cooperation factors. For example, young workers
between Japanese manufacturers and are increasingly shying away from
their counterparts abroad. In the work on the assembly line and danger-
future, the number of cases will ous jobs. The industrial roboi is an
increase further in which Japanese effective means to reduce labor costs.
maflufacturers will cooperate with The robot's performance has so
machine producers in other countries advanced recently that it can perform
~ by providing them with Japanese tech- various jobs. Many robots take
nology or using Japanese facilities. the place of simple manual work
The time is coming for Japan to retum of man. And the number of computer-
to its former "teachers" for what it controlled robots for precision work is
has leamed. also increasing. Another factor con-
Industrial Robots tributing to the fast spread of robots
is that 3apanese labor unions are not
_ As mentioned above, the Japanese opposed to the introduction of
machine industry has achieved spec- industrial robots as strongly as those in
tacular advances.in technology, partic- the U.S. and Europe.
ulariy in "mechatronics." One of its The use of robots will continue to
achievements is an industrial robot. increase in such fields of work as
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machining, welding, painting and small- and medium-sized manufacturers
press. lt is also likely that new robots are curbing equipment investments,
will be developed for such jobs as ( l) ~ although big businesses are not so bad.
assembling many different types of These are negative factors the machine
products in small quantities, (2) tool industry must not overlook, On
material handling and machining, (3) the other hand, demand for NC
cast finishing, (4) interior painting (numerical control) machines is per-
and finish painting of automobiles. sistently strong both at home and
Such industrial robots will probably abroad. Encouraged by recovering
- be in practical use in the 1980s. orders, shipbuilders are showing moves
Thus, robot production is consider- toward equipment investment. After
ed to be a promising business in the all, however, the conservative opinion
- machine industry, and many manufac- waming against over-expectations of
turers - about 130 in all - have the favorable developments dominated
entered this field of industry. Japan's the association members.
top robot maker, Kawasaki f~eavy In this year's projection, new orders
Industries, is likely to tum out 600 are estimated at ~620,000 million,
robots for welding or painting opera- down 2% from the previous year. The
, tions within 1981 and 1;200 more annual output is expected to reach
units in 1982 under a technical tie-up ~780,000 million, up 8%, since manu-
arrangement with Unimation Inc. of facturers are estimated to have an
the U.S. With the "robot fever" average of six months of work in their
sweeping ,japan, some one began backlogs. In view of recent trade fric-
calling the robot a"steel color," a tions, estima~tes for imports and
tenn vis~a-vis white color and blue exports are "political" ones. Exports
color. The steel color may probably are set at ~290,000 million, up 4%,
oust many of blue color workers and imports 3f45,000 million, up 15%.
from factories in Japan before long. Domestic demand is estimated at
Machine Tools ~535,000 million, up 12%.
The business prosperity the ma-
In March ever~ year the Japan chine tool industry has enjoyed for the
Machine Tool Builders' Association past few years is obviously coming to
publishes a business outlook - de- a waning phase. Demand rose sharply
mand and production - for the new during the past years. New orders
� fiscal year beginning on April 1. It is received in fiscal 1980 totaled
prepared on the basis of the projec- 3F631,700 million, a 29% increase
tions of the association's 68 member over the previous year. Production was
firms. lt is reported the assessment up 36% at ~720,000 million. One of
- of business in this fiscal year was the reasons for the growth was a sharp
widely divided to an unprecedented increase in demand for NC machine
degree. This means that the association tools. Orders for NC machines
committees could not make a proper accounted for 51.5% of the total
projection of new orders for machine orders received in fiscal 1930. Most
tools unanimously. of the NC machine orders are of
The business outlook of the auto lathes and machining centers. Their
industry - a major user of machine outputs in 1980 were 12,000 units
tools - is not very bright. Car exports (up 55% over 1979) and 5,200 units
are expected to slow down due to (up 75%), respectively.
trsde frictions with importing coun- Aemand for NC machines will
tries, while domestic demand is continue to increase in the future,
likely to stagnate this year. Meanwhile, but the growth rate will probably be
moderate, compared with the past
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few years. Particularly, as to NC
lathes, many industry observers say The federation estimates that the
that demand has generally been ~illed. output of all machinery in fiscal 1985
Machining centers still have potentials ~ll total Sf56,311,400 million in
for expansion. But most prospective ~~ue. This represents an average
annual increase of 6.3%a. In the break-
markets are located overseas. So, dovm, the output of general machin-
optimism is rot warranted. A general ery is estimated at ~F14,874,700
manager of one of Japan's major million, which indicates that the
producers of machining centers says, annual giowth rate is 5.8% on the
"Prospects are bright until the first average. The total domestic demand .
half of fiscal 198?. But we cannot tell for all kinds of machinery in 1985 is
you if the demand~continues to rise or set at 3F35,147,000 million (growth
decline thereafter. rate: 6~.1%), and that for general
It also seems to be clear that NC machinery at ~10,761,900 million
machines will make the main stream (5.7%). Total exports are estimated
of Japan's machine tools in the future. to reach ~F21,164,400 million and
The increase in exports owes to brisk those of general machinery
orders for NC machines. Especially ~4,112,800 million. Their average
medium- and small-sized NC mac;unes annual growth rates are 6.7% and
of Japan have won high reputations 6.1%, respectively. The growth rate
overseas. Electronic components em- of electric machinery is estimated at
ployed in the machines, such as micro- g,~qo to total ~F6,826,000 million, and
computers and sensors, are largely the growth rates of other types of
responsible for the credit. The so-
called "mechatronics" will provide a machinery are set below the average.
prime power for the development and Exports of general machinery to
advancement of future machine tools. the United States and Europe are
This may also be applied to other growing continuously, and some of
types of machinery. them might cause trade frictions in
the near future as in the case of car
_
Future Oudook exports. The share of Japanese ma-
chinery on the Southeast Asian market
Last December the Japan Ma- is quite high. For example, almost all
chinery Federation published a busi- the construction machines used in the
ness outlook projectin..g the produc- area are Japanese products. Naturally,
ti~n, demand and exports of general the necessity of overseas production
machines, electric machines, transpor- by Japanese makers will grow in the
- tation equipment and other types of future. Demands for "orderly exports"
machinery in fiscal 1985. ~ may also arise in importing countries.
This estimate was prepared on the 'The machine industry will have to stop
basis of the Japanese Govemment's massive exports and study the possi-
new seven-year economic-social pro- b~ty of developing the domestic
gram, which is intended to "balance market. In the light of the industries'
the ratios of exports and imports and moves toward energy conservation
establish an economic growth pattern and development of substitute energy
counting on domestic demand." The sources for oil, machine makers
- estimate, therefore, has a political have to step up efforts to develop
dnge but still suggests a medium-term labor-saving equipment, pollution
projection of the nation's machine control equipment, large-scale con-
industry. struction machines and equipment for
8
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development of energy resclrces. At
the same time, it is important to
develop high value-added pro~ucts.
_ In fact, many machine makers are
_ studying ways to expand business
tie-ups with electronic equipment
manufacturers to develop software for .
their products, as well as strengthen
their own research and development
divisions. While stepping up technical
cooperation with foreign manufac-
turers, they are aLso studying ways or
plans for overseas producdon, includ-
ing "knock-down production." This
is a new phenomenon that has arisen
in the 1980s - an indication of
manufacturers' strong detemunation
to survive the difficult era.
COPYRIGHT: Diamond Lead Co., Ltd. 1981
CSO: 4120/291
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SCIENCE AND TECHNOLOGY
JAPAN, U.S. COMPETE OVER IC MARKET SHARE
Tokyo NIKKAN KOGYO SHIMIiUN in Japanese 9, 11, 12, 13, 17 Jun 81
[9 Jun 81 p 8]
[Text] Japan's IC industry is comparsble to being in a situation in which it is
one of the contestants in a semiconductor confrontation between Silicon Va11ey
~ and Silicon Island. The relationship between these two contestants has been
extremely tranquil during the past year, but the demand for ldwering IC import
duties erupted at the time of Prime Minister Suzuki's visit to the United States,
and the heat from this friction still has not subsided. On the other hand,
_ because Japan has taken over 70 percent of the 64K market in an overwhelming
show of strength, there is a complete reversal of the situation of 3 years ago,
at the time of the "spy incident involving Japanese industry, in that Japan is
considered to be the decisive victor to the extent that it is rumored that some
voices are being raised on the American side to "study the ways of the more
powerful Japan." This is why it was decided to survey the frontline of the
Japanese IC industry and to look into the most recent situa.tion and the changes
on both sides .
Intense Enticement Activities
There is in the Japanese archipelago today an epidemic of IC fever. This fever
has also struck every country in the world. Self-governing units, power com-
- panies, and mass commtmications related governmental organs throughout the
coim try are engaged in a hectic race for "an IC plant in i.ts town." It is an
almost daily accurrence that semiconductor manufacturers s~ich as Nippon Electric
and its main plants in the northern Kyushu district are being enticed to relocate,
and it is not necessarily a mistake to engage in such give-and-take efforts.
The scene is the reception room of Nippon Electric Company's ma.in office. The
visitors are the executives of a certain prefecture who are asking this company
to locate there. The party answering this delegation is the so-called "top man"
_ of Japan's sem:i.conductor industry, Vice President Jungi Ouchi of this company.
Prefectural delegation: Our prefecture has good water available, and there is
ample labor to the extent that there is a considerable overf low of labor from
the prefecture. The prospective plant site is but 30 minutes from an airfield.
Why not locate an IC plant in our prefecture?
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Mr Ouchi: This company plans during the course of this year to expand the
former processing line in Yamagata Prefecture, in addition to which it will
construct an assembly plant in Akita. At the same time, selective buying is
under way for a second plant in the ifi.ited States, and we have started in on a
comprehensive LSI plant in Scotland. We will make a study of your prefecture,
but we do not have the leeway to make a move right now.
Similar sessions are experienced by the "supreme mentor" of Hitachi Limited's
Semiconductor Industry Department, director Hiromu Asano, almost daily. The
situation is the same at Tokyo Shi~aura Electric and Ma.tsushita Electronics
Industry. Whether in submission to such fierce onslaughts or whether a balance
was found between gains and losses, Mitsubishi Electric has decided to locate a
plant in Ehime Prefecture.
This type of visitation rush also ap~lies to Kyushu Electric and Toshiba's
Oita IC plant, and these people say that for the past year or 2 they have been
exposed to a continual series of "please hear our offer for you to locate in our
area" enticements. Visiting groups are "coming down to the extent we almost
hate to see them come."
A b reakdown of these visiting groups shows that there is a predominance of local
self-governing bodies, commercial and industrial groups, and power companies
(the IC industry utilizes air conditioning and furnaces, so it uses large amount
of electric power; indicative of the huge consumption of power, Kyushu Nichiden
is said to pay 130 million yen a month in power charges to Kyushu Electric) from
Chugoku, Chubu, Shikoku, and Hokkaido, where there is little in the form of IC
- industries.
The reasons local self-governing bodies are putting on so much pressure in their
inducement efforts include: 1) IC acts as the food for industry, as it is known
that IC is associated with the growth of the iron and steel industry and other
basic industries, and the opening of new plants has a very great domino effect
on industry; 2) this is a nonpolluting and advanced industry; 3) it is of a suit-
able scale to absorb excess labor capacity. Added to this has been the overlap
with the most recent technopolis concept to spur this movement further.
Sales Double in 3 Years
Now, listening to the situation as seen by the semiconductor industry, we hear
the following story: "This business will be in sad straits if sales double
every 4 years, as is the case with the computer industry, and we expect sales to
double in 3 years. This is why any company which does not construct new plants,
even though it says it will not produce very much, will be in a poor production
situation one day." (Director Hiromu Asano of Hitachi Limited) Where Nippon
Electric is concerned, it is eagerly constructing new plants every year, and its
annual outlay for new facilities is assuming gigantic proportions, as attested
= by this year's investment of 35 billion yen.
According to director Asano, the items Hitachi looks for when it seeks to locate
a new plant are: 1) Is there a site which has idle in-plant space? 2) Is there
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a Hitachi group member with su~h a location? 3) Is there a site in an area
where the technopolis concept is strong? Even though all of Japan would like to
get into this industry, the company`s situation must always be uppermost in mind.
Unlike the situation with Silicon Valley, even should Japan succeed in cen-
tralizing its IC industry, the problem of the "supply of chemicals and gas will
be the ultimate limiting factor," and there is not much advantage in such con-
centration. Qn the other hand, dispersion of the industry will facilitate
assurance of manpower, which is a limiting item particularly with respect to
manpower for equipment maintenance and improvement. These are the reasons for
dispersing the industry throughout the country.
Nippon Electric's expansion in Yamagata Prefecture, parallel to its expansion in
Kyushu, is one phase of such a program. Mitsubishi also feels that concentrating
its plant facilities in Kyushu may be risky, and that it would be better to be
located in four or five areas throughout the country. Its recent move into
Shikoku to set up its "virgin IC site" reflects this position.
Viewed from this viewpoint, there is concurrence between the inducement groups
_ and the IC industry groups that their basic line of thought is to convert the
Japanese islands into a Silicon Island (this may be put more accurately as
Silicon Archipelago). If this comes to pass, the entire archipelago will
develop IC fever. When Nippon Electric announced the construction of its assembly
plant in Akita, the contract was signed at the prestigious Distinguished Visitors
Reception Room at the prefectural building. The governor himself addressed the
news group on the history of this development. Local papers carried banner head-
lines the next day, taking more than half of the front page to cover the event.
In fact, all of the country's papers gave this item top billing from the social
movement front (prefectural press), and there was lavish welcome for this occa-
sion.
Communist Sphere Also Shows Interest
A recent trend at the Kyushu IC plants has been the influx of foreign visitors.
- For example, semiconductor manufacturers and consumers, buyers, and important
government people from the United States and Europe have been continually
visiting Toshiba's Oita plant. Visitors from communist coim tries are also
appearing. When this reporter visited this plant the latter part of May, he
was told that visitors from two East European countries had come the week before
and Soviet high officials would be coming by that week.
In this manner, even the so-called main adversary in the semiconductor area,
the United States, has had its semiconductor industry coming to view the situa-
tion en Kyushu, which has become famous as the semiconductor island. It is said
that this trend happened after the Washington seminar (sponsored by the Japanese
Electronic Equipment Association), at which time the superior qua.lity of Japan-
made IC was broadcast to the world. Yt was here that the Japanese industry
. demonstrated its close control over product quality through quality assurance
and demonstrated its better quality over the American product. This was why the
thought arose among the Americans that if the product was that good, a look at
the Japanese IC plants was warranted. Qne visit was sufficient to impress the
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visitors of the beauty of the quality control program, and this information was
relayed to the Valley, with the result that visitors from that area now make a
beeline for Kyushu on their arrival in Japan. FORTUNE magazine, in an issue
2 or 3 years ago, stated, "The Japanese industry has spies in Silicon Valley."
Compared to that situation, Japan's position surely has changed.
- [11 Jun 81 p 14]
[Text] Nine Semiconductor Companies are the Strongholds
During the past 5 years, I:yushu began to become regarded as the "Silicon Island"
counterpart to the "Silicon Valley" of the United States. It was about 11 years
ago, in 1970, that semiconductor plants began to be located in Kyushu in sizable
numbers, and this was when the Kumamoto No 2 plant of Mitsubishi Electric, Kyushu
_ Nippon Electric, and Tokyo Shibaura Electric's Oita plant all initiated operations
- at about the same time.
The following is a brief history of the semiconductor industry in Kyushu.
Decemher 1966 Toshiba's Kyushu plant
July 1967 Mitsubishi's Kumamoto No 1 plarit
. March 1969 Matsushita Electric at Ka.goshima
March 1970 Mitsubishi's Kumamoto No 2 plant
April 1970 Kyushu Nippon Electric
July 1970 Toshiba's Oita plant
November 1973 Nippon TI Hinode plant
May 1974 Sony's Kokubun Semiconductor
October 1976 Nippon Gakki's Kag~shima. plant
August 1981 Miyazaki Oki Electric
A2though there are some assembly plants, the nine major companies with the excep-
tion of Hitachi Limited, Sharp, and Sanyo Electric have production centers in
Kyushu. In addition, the IC industry based on Kyushu has been recording the
high average annual growth rate of 40 percent, which accounts for 40 percent of
the entire country's production and for about 25 percent in money value.
There Are No Other Suitable Sites for IC
We asked Ma.sao Suzuki, director of Nippon Electric Kyushu, Morihisa Nakane,
manager of Mitsubishi's Kumamoto plant, and Akihiro Fujii, manager of Toshiba's
- Oita plant, why the IC industry located in Kyushu. ~hey all gave as the primary
reason: "Above all, there was an abundance of good-qua.lity labor." This was
followed by "there is good water" and "airfields are nearby, making for ready
communication." As long as these conditions can be satisfied, it is expected
that Kyushu will continue to remain a large IC production base.
Director Suzuki of Kyushu Nippon Electric had this to add, "It was I who stated
that Kyushu is blessed with the three conditions necessary for the IC industry:
manpower, water, and airports. However, this statement is but a catch phrase.
I cannot say whether everyone jumped on the bandwagon or was forced on, but when
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I look at the situation in which this explanation is spouted as gospel truth,
I have recently begun to reconsider my position." He added, "If one examines
the three conditions suitable for IC more carefully, he will find that any
place in the Japanese archipelago will fulfill these conditions. Kyushu is not
the only site."
Director Suzuki's views may probably be reg~rded as holding true at the present
time, for surely the Tohoku district or Shikoku would satisfy these thrae condi-
tions (in like manner, the entire archipelago constitutes I~ fever).
Take, for example, "good quality and abundant labor." The educational level is
the same no matter where one goes in Japan, and there is essentially no differ-
ence between districts. The level is high compared to the United States. The
ability to pick up leading technology industries quickly and even have the
capacity to improve and further develop the technology is present in workers
throughout Japan, no matter whether the worker comes from a good school or from
Iwate.
Kyushu is not particularly blessed with labor. Looking at the new influx of
workers from the middle schools and upper secondary schools during JFY 1980,
there were 88,700 from Kyushu, while the Tohoku district with not much industry
had 94,200. In addition, there were 40,000 in Chugoku, 23,600 in Shikoku, and
17,000 in Hokuriku. In this manner, all these districts have the capability of
absorbing an industry such as an IC plant which hires between 1,000 and 2,000
workers per plant.
Accidentally a Producer of Distilled Spirits
Should one look all over Japan, he would find very few places where the quality of
water is so poor that it cannot satisfy the condition of "water being of good
quality and abundant." Practically every district can supply the volume of water
required by an IC industry. "The practice in the past was to.select a site
where the water was pure and low in salt content. On the other hand, water and
construction control has been improved to the point that any water is suitable
as long as it is low in silica. The site can be along the coast of Oita, as was
seen above. The distilled spirits of Kyushu are of good quality. While it has
been said that a site that is good for manufacturing distilled spirits is also
suitable for IC production as well, there is no real scientific basis for this.
Water used in IC production is rather poor in quality" (Mikiro Safuji, ma.nager
of the production department of Toshiba's Oita plant).
Toshiba's Oita plant takes water from the Ono River which flows through the city,
and this water is filtered and used as tapwater. This water is converted to pure
water, from which superpure water is prepared by an ion permeation method. Super-
pure water is a very important item in the IC industry; it is used to wash wafers
and prepare chemical solutions. This is why this plant has a large water treat-
ment facility, and large and small pipes distribute this water around the plant.
This situation is the same at Kyushu Nippon Electric and Mitsubishi Kum~.moto. As
long as this type of complete water treatment facility is available, it makes no
difference where one is located. The fact that Hitachi continues to operate its
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Musashi plant as a center for super LSI development, despite its acknowledged
water limitations, is the result of the development of this water treatment
technology and drying technology.
"The proximity of an airport providing convenient transportation" was given~ as
the reason for the decision of Oki Electric to select the town of Seibu, iri
Miyazaki Prefecture, which is only 15 minutes by automobile to the Miyazaki
airport through Nitta-shi in Oita Prefecture, and this has become very famous.
It is true that air transportation is a vital cog for the IC industry.
~ A ton of "IC" is worth 300 million yen, and this amount can be put in two con-
tainers for air transport. The shipping cost is 250,000 yen--a piddling sum
compared to the value of the product. By timing the arrival of the package at
the airport no later than 5 p.m., this plane can meet the plane which leaves
Kumamoto airport at 7:40 p.m. and arrives at Haneda by 9:30 p.m. that same
evening. There is no difference in cost or time from a product shipped from
the Sagamigahara office. It can almost be said that "this is the Kumamoto city
ward of Tokyo," said director Suzuki of Kyushu Nippon Electric in citing the
merits of air transport.
Critical Air Industry
The situation differs, however, in the case of Mitsubishi Kumamoto. Should air
delivery be planned from Mitsubishi's new plant at Itami, there is no suitable
plane toward the Kansai area from Kumamoto in the evening, and there is no
- difference in time between air transport and truck transport from the Itami
plant.
Toshiba Oita ships everything by air transport. It takes more than 2 hours to
get to Oita airport by automobile (it is convenient for Nippon TI at Hinode),
but this illustrates the extent to which air transport is utilized. It is not
only the prefectures of Kyushu which have airports. Fujitsu's decision to locate
in Iwate Prefecture, Nippon Electric's venture into ~kita, and Mitsubishi's in
Saijo were determined by the proximity of airports. Here again, Kyushu has no
superiority.
Everyone said that the selection of Miyazaki by Oki Electric Industry was
natural. Miyazaki probably is the only place left in Kyushu which would fulfill
the three conditions. In addition, the reason given for Nippon Electric's deci-
sion to build an IC strongpoint in Yamagata parallel to Kyushu Nippon Electric
was that "Kyushu has reached saturation in the labor situation." (Director
Tomihiro Matsumura) 'There is already the feeling that Oki Electric's new plant
may be the last new large-scale IC plant in Kyushu for a while, and it is
expected that there will be a shift to the super-LSI age, in which plants will
be renovated and provided with new capabilities. This move is expected to be
accompanied by greater development of IC-related industries and electromechanical
industries.
]5
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Major IC Related Industries Locating in Kyushu
~ ~i`1I 'IA z Tk ~ ' ~ cJ ~ � _ ~~R ~ ~ ~I
R
~ ltl._"7~31.l1iT1b 9 1(1~C11.lHi13 41.12-5f~(~!'-K. IC~1L~'
=7@~6I39~F1~12 13~ ~ T~ 52�12 ~I CIHTi]YT14 50
itfH~'/~ 15 16~~t H! 11.10 I ClNsYi'C 14 5`~ 1'7~
~ ICtfi~=L4 ho?~:L ~ 7i ffi195. 3~-fi~TK. LED20 300 Y.h.lH21I
_JP2f'Er?rVf~22 191/L ~i`~"i 14.8 ~ -K7li-A~23
'm 24 25~ 111 iN 51.10 I CIII~iYGt~ tl~26 250 7t,fH8tt 7
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3 ~ I h,?NR=3~li 3g 37iL ~C ~I 4B. 8~~'1 hi"75~~-. �~8 520 ~~5~= 3
jt.fHFl:x1[SB q q2 11If 7!C i}i I5. 4 I C-1[ 43 2,000
~ t~~Q1~1'~r~r 4~ 42 1111 aK 'fii 55. 7t~~i ~!~lQ84 5 1o ii,lHe~ 6
~ =.~+Al-Z46q 7 421111 ~K ~YJ 42. 7 i C-f[ q 450
,y~ =`1QtOtltrll=Stlbqc~ e}Q11H ~S. 3 I C-1[ 4~ 350
~ip~~l~u 513~ ~ tN 51. B QOY~1~Ci1t. 7� F~52 100 l31~s7~1 3
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~_-WS?t~~:i3~~J3~-W 1) fN7'1~5. 5 I C-1[78 570
Er6 Cj:z~eRe9e9P,D?SJrf79 !IF !F RYFS'Et�10 I C-I[7Ei 280
75 ~~~X~ R1 E~2T ~ 53.10 I CR1Jt~'C~ I11~83 320
R tICA:61rY~T'~-7� (i4 R5~1' 41� 3 *h3:~:~.ZSt.'~'~fE16 823
~'-'h'~~p~~~ A7 CaHtli ~!c ift 41. 9 fi6~~]MiniT~ LEDf 950
;;(176'~~~ J~l �[A5}97 tii 5? }'h~31l7.10 ,j C.~t�,7-rJ~ 1f,93.300
~ rlR4t5~ J4 �lilt~494 lil f~l iit9F~a� 7~Ci~ ~h'-7 96 1~500
I NV'.,l;Abili~Ext~7 ha=.q ff~ l~ BJ 54.12 ~ y~~c h 150
, J. g~ gn ~i3R3MIAix'C99
1707~Aik1ZL'{355~7F-19dtE C7~S>YR71'~)
Key:
1. Prefecture 24. Fukuoka Nippon Electric
2. Industry 25. Yanagigawa-shi
3. Location 26. IC assembly, inspection
' 4. Start of operation 27. Kyushu Nichiden
5. Product, process 28. Buzen-Toshiba Electronics
6. Number of workers 29. Buzen-shi
7. Affiliation 30. IC, LED assembly
8. Fukuoka Prefecture 31. Saga Prefecture
9. Toshiba North Kyushu plant 32. Saga Electronics
10. Kita Kyushu-shi 33. Mitagawa-shi
11. Diodes, IC . 34. IC, transistor assembly
12. Mitsubishi Fukuoka Seisakusho 35. Shin Nippon Musen
13. Fukuoka-shi 36. Kyushu Denshi Kinzoku
14. IC assembly 37. Ekita-machi
15. Kyushu Mitsumi 38. Silicon wafer single crystals
16. Iizuka-shi 39. Osaka Titanium
17. Mitsumi Electric (Tokyo) 40. Kuma.moto Prefecture
18. Nogata Toshiba Electronics 41. Kyushu Nippon Electric Yuasa
19. Ma.gata-shi Seisakusha
20. Diode, LED assembly 42. Kumamoto-shi
21. Toshiba Kita Kyushu 43. IC complete
22. Mitsui Kosakusho, Magata 44. Kyushu Nippon Electric Yuasa
23. Lead-frame production Seisakusho
� [Key continued on following page]
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45. Maintenance, maintenance-reldted 76. Sony K4kubun Semiconductor
equipment manufacture 77. Kokubun-shi
46. Kyusi~~u Nichiden 78. IC complete
47. Mitsubishi Kumamoto No 1 plant 79. Nippon Gakki Kagoshima plant
48. IC complete 80. Kurino-machi
49. Mitsubishi Kumamoto No 2 plant 81. Kagoshima Fujitsu
S0. Kumamotd Toppan 82. Nyurai-machi
51. Tamana-shi 83. IC assembly, inspection
52. Circuit design, fat mask 84. Ka.goshima Matsushita Denshi
53. Toppan Insatsu 85. Ishuin-machi
- 54. Nansei Denki 86. Transistor, diode
55. Shimizu-machi 87. Kagoshima Nippon Denki
56. IC assembly, inspection 88. Idemizu-shi
57. Kyushu Nichiden (final) 89. Fluorescent display tube, LED
- 58. Kyushu Nisshi Denki 90. Tobu Ceramics, Kakubun
- 59. Yabu-machi 91. Kokubun-shi
60. IC assembly 92. [number not used in.key]
61. Oita Prefecture 93. IC packa.ge, electronic parts
62. Japan Texas Instrument Hinode 94. Tobu Ceramics, Kouchi
plant 95. Kouchi-shi
63. Hinode-machi 96. IC packa.ge
64. IC complete 97. Kagoshima Toshiba Electronics
65. (Unannounced) 98. Ha.yato-machi
66. Toshiba Oita plar~t 99. Ceramic base plate, transistor
67. Oita-shi assembly
- 68. Miyazaki Oki Denki 100. Number of workers from survey of
69. Seibu-machi July 1980 (by Oita Prefecture)
70. Super LSI complete .
71. (Final)
72. Kyushu Komatsu Denki
73. Silicon wafer single crystal
74. Miyazaki Prefecture
75. Ka.goshima Prefecture
[12 Jun 81 p 12]
[Text] Sudden Increase in Exports From 1979
In 1979, Japanese-produced IC really began to invade the American market. The
American economy made a sharp recovery from the recession of 1974-75, and indus-
trial production volume increased sharply. To be sure, this increased production
was even more noteworthy in the glamorous electronic industry, and the manufac-
turers in Silicon Valley were in the enviable position that they almost could not
keep pace with the orders from consumers. At the same time, this was just about
the period when there was shift from 4K IC memory to 16K, and the Valley's produc-
tion system had not yet caught up with this change. Because of this production
insufficiency, manufacturers in the Va11ey were all putting capital into plant
investments, and this factor, compounded with the lack of sufficient IC, placed
consumers in these straits.
~17 ~
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Upon seeing this situation, Japanese man.ufacturers exported samples to companies
such as Hewlett-Packard, DEC, and Univac, and demonstrated that these products
exceeded the American products in quality and were favorable both as to avail-
ability and cost. This was how exports of Japanese-made IC to the United States
began. The share of the American market captured by the Japanese rose to 40
percent.
Nippon Electric Will Build No 2 Plant
Nippon Electric was one of the first to enter into e~orts of IC to the United
States, but when Japan's share of the American market began to exceed 40 percent,
the American Semiconductor Industry Association (SIA), which draws its member-
ship mainly from Silicon Valley, slowly began to mount anti-Japanese criticism
' which Nippon Electric was quick to realize the implications of, and so in 1978
it bought into one of the important specialty makers of the Valley, "Electronic
Allies," and started production in the United States. In addition, this company
is presently trying to procure a second production plan in the United States.
"This will be an integrated plant covering everything from software processes
to assembly, and it will be truly an NEC mode plant. The ch4ice has almost been
finalized. We probably will be able to initiate production next year. We expect
to use this plant solely for 64K production" (Hirobei Nagabune, president of NEC
Electronics USA).
Toshiba Has Monthly Production of 2 Million Units
In April of last year, Toshiba purchased Marmon Integrated Circuits, which had
been owned by Japanese-Americans, and set up its own onsite production plant,
"Toshiba Semiconductor." At the same time, Toshiba enlarged this plant and put
considerable funding into the facility. It is said that several billion yen
was directed to this project. This new facility is said to include a completely
automated assembly line which is Toshiba's pride and joy, and its production
capacity is 2 million units per month.
~ With these moves, "we have assured ourselves a status of being one of the main-
stay manufacturers in the United States. We will convert this plant into a local-
type organ as quickly as possible. We want to set up a business structure which
will be managed by an American as president" (Kenji Takahashi, president of
Toshiba Semiconductor).
Operations Initially Will Be in the R,ed
A unique Japanese-related ~ndustry present in the Valley is Excer. It is a
daughter company of resistor manufacturer Toyo Dengu, which was started 10 years
ago, about the time tntel made its entry. "We had predicted that the semi-
conductor age will take over, said Kenichiro Sato, president of Toyo Dengu,
"and we decided that if we were to make a. start, Silicon Valley would be the
place." On the other hand, unlike large industries with abundant capital, this
company had but limited funds, and it was difficult to advance a large sum at
any given time. When this business first st~.~ted, operations were under the
control of an American president, but this company's business policies could not
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be implemented, and the business operated in the red. As a result, president
Sato personally took over direct ma.nagement 3 years ago, after which the situa-
tion finally stabilized.
Way of Life for Medium and Small Industries
The feature of this company however, is that in the eyes of the American people
it functions as a completely American business. It is said that some of the
workers do not even know thar this is a Japanese industry. At the same time,
this company differs from other Japanese industries in its business policy.
Where the other Japanese companies are engaged in making standard IC memories,
this company specializes in semicustom (gate alley) and custom-made IC produc-
tion. "This is the only way we ca.n operate effectively with our limited funds"
(president Sato). This company has adopted the small-volume production of
various different units which is a feature of Japanese medium and small indus-
tries.
Other companies which have established sales outlets in the Valley are Hitachi
Limited, Fujitsu, Mitsubishi Electric, and Tokyo Sanyo. Fujitsu has a separate
company with production facilities in San Diego, where it carries out IC assembly.
The Fujitsu America sales company was origina.lly the sales window for computers
to Amdahl. Last fall Hitachi shifted its Hitachi American semiconductor industry
section from Chicago to the Valley, while this spring Mitsubishi shifted its
semiconductor industry department of Mitsubishi Electronics from Los Angeles to
the Valley, and its semiconductor sales headquarters was established there. Oki
Electric has its sales company, Oki Semiconductor, which has begun sales in the
United States of inemories and microprocessors. In addition, Sanyo Semiconductor,
which is the sales company fo r Tokyo Sanyo, has also established business offices.
In this manner, nearly all of the large Japanese semiconductor manufacturers
have set foot in the Valley by one means or another and ar~ actively conducting
business. As these activities become more and more prominent, manufacturers in
the Valley, centered on SIA, are becoming increasingly more wary and are com-
plaining about the plight of the Valley to the federal government (San Francisco
Communications Department).
[13Jun 81p 8]
[Text] Mass Production Is Japan's Forte
Why has the Japanese IC industry become so powerful? When this question was posed
to any of the top men of Japan's semiconductor industries, no one said that this
was accomplished through developmental strength or overall technological strength.
_ "American industry is naturally superior in research and development, .and there is
very little here that Japan can point to with pride. However, the Americans are
lacking in mass productian expertise, while, conversely, the Japanese are very
good" (Ouchi, vice president of Nippon Electric). This explanation of the charac-
teristic feature of the Japanese semiconductor industry is one that has been
around for some time. At the least, it is said that the Japanese are superior
in mass production technology and have really surpassed the world in the matter
of inemory.
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Director Suzuki of Kyushu Electric made the following analysis of Japan's
outstanding record in the matter of mass production.
The first point is the difference in the line of thought regarding inventions.
In the United States a brilliant invention on the part of an individual wins him
great admiration, and he may become, first of a?.1, very wealthy. As demonstrated
by the example of President Noyes of the American company Intel, who used the
money earned by his invention to found this company, it is the practice in the
United States to recognize individual efforts. In contra~t, many of Japan's
inventions are the product of salary men; for example, even a very outstanding
invention reverts back to the industry, and there may be at most an award of
roughly 50,000 yen from the company president. Fundamentally speaking, coopera-
tive effort is respected more than individua.l efforts, and it is the philosophy
that inventions and new technology are the products of ideas thought out and
worked out by a large group. This is why there is from the outset more thought
directed at technology related to mass production in plants, and the development
of mass production technology is a natural result.
High Quality of Labor
The second point is the very high educational level of the operators. "This is
somethiug we have really learned to appreciate, coming to Kumamoto from Tokyo,"
the talk goes. Kyushu Nippon Electric received the 1979 Deming award. Its QC
(quality control) program is very famous, but it no~~ exercises SQC (statistical
quality control). This is a method in which studies are made on how to converge
quality scatter, and it involves fairly high-level mathematical elements in its
application. In this work, girls just out of higher middle school sit side by
side with the more experienced hands and develop the theory behind this quality
control system. This is something which is unthinka.ble in the United States,
- and when Americans see the product made by these girls, they say in astonishment,
"This is something only specialists can produce, and certa~:?ly this high-level
work is not the work of young girls."
Manager Nakane of the Mitsubishi Kumamoto plant also believes that this high
standard of labor is Japan's strongpoint. Ever since the Meiji Era, Japan has
resolved to overtake the Western world, and the national character that was
developed by this process was such that when one did any work assigned to him,
he could at best register but 80 points, and this was insufficient to overtake
the Western world. In order to overtake, one had to take it upon himself to
- improve his work and aim for the high mark of 90 or 95 points, according to the
desire that was subconsciously instilled in him. It is this awareness to search
for job-connected problems of which the technologists had not been aware, the
so-called QC, which is the strength that has sustained the small group activities,
according to one analysis. .
On top of this high educational level is the in-plant training which foll~::s,
and this makes the quality of Japanese labor that much better. In the first
place, the IC industry is an equipment-using industry. The equipment involves
the application of physics, chemistry, and optics-type academic knowledge, on
top of which the equipment of this industry is advancing and becoming more
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complex with great fervor. The price runs into the very high order of 100
million yen per unit. The operators at these plants who operate this equipment
and machinery must thoroughly tmderstand the principles upon which the units
operate, and if they are to survive in the IC industry of the future they must
be able to service and repair the equipment without needing to call in special
technicians, according to statements made by the top brass of Hitachi's Musashi
plant. This is why this company believes that "education is the one main
weapon." In 1975 it established an educational center with the status of a
semiconductor production department at its Musashi plant (higher vocational
school training), ~~here workers are given a year's course in knowledge and tech-
nical handling of semiconductors covering the whole system before they are sent
to their jobs. This training instills a feeling of belonging. The number
trained thus far has come to more than 250, and this represents a potent strate-
gic weapon of this company. When the reporter visited this training department,
several workers were sitting on the floor of a clea.n room feverishly working,
and the picture of the high level of Japanese labor become even more apparent.
In contrast to this situation, it is said that the quality of the Western worker
is such that high school graduates can only be taught by breaking down 500 IC
units into 10-unit lots, demonstrating the lower level of competence. Further-
more, they do not remove their shoes upon enteri,ng a clean room. They bring in
handbags, and they require coffee time. When required to wear uniforms, they
demand extra pay. This different behavior resulting from different cultural
standards is reflected in the manner of behavior in the production of IC units.
This large difference in worker levels must certainly be reflected in the
quality of the products they produce.
Knowhow Numbering in the Thousands
The diffusion process, which is a basic process in IC production, involves baking
in a furnace, making IC products resemble ceramic products. This process involves
considerable knowhow, such as where to place the temperature measurement gages or
what angle to set the items to be fired. Where an etching process is involved,
the situation is similar to one used in producing photographic plates, and this
= too involves various knowhow. Furthermore, micron-order dimensions are used, and
"dust, scars, and contamination" must be avoided to the utmost. This is why the
wafers are handled with forceps, and even this handling must be minimized in order
to reduce chances of fouling up the wafers. Here again, knowhow stands out
p rominen tly .
It is said that a study was conducted by Kyushu Nippon Electric to see just how
many times during the diffusion process a wafer was handled by forceps, and the
number turned out to be 97. Such a large number.of handlings certainly was not
conducive to the high turnover rate required to produce micron products, and so
efforts went into studying how to introduce automation and thereby eliminate the
use of forceps altogether--whereupon, it is said, a line requiring but three
forceps operations was developed. This knowhow is the sole property of Kyushu
Nippon Electric. Since ordinary paper is a source of dust, all writing materials
such as process charts are made of plastic paper. Since the use of forceps to
remove the etched wafers from the etching bath wi~l cause changes in the bath
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composition, the bath is expanded on the inside to lower the liquid level and
facilitate removal. This again is knowhow. It is only through the capabilities
provided by the hundreds or even thousands of knowhow items intrinsic to this
company that high turnover rate and quality can be anticipated. Mitsubishi,
Hitactii, and Toshiba all have their own private stores of knowhow. In fact,
mass production technology is an assembly of these accumulations of knowhow
that were achieved by group effort and are the joint property of a large number
of people; it is impossible to designate any single individual as being respon-
sible for any particul.ar invention. It can be said that Japan's mass production
technology has been able to surpass that of the United States only because of
this Japanese approach to mass production technology.
On the other hand, the following opinion was expressed at Hitachi Musashi.
"Does Japan not lean too heavily on the superiority of its technologists? And
just as with the Zero fighter tactics of World War II, Japan is depending on
its technology to the utmost. Quality control is such a course. On the other
hand, the American approach, as exemplified by Grumman, is to employ dunces and
idiots to man simple machines, making unnecessary highly trained technologists
to counter the Japanese approach. The present situation is akin to Pearl Harbor.
We have but caon the initial skirmish of the war."
[17 Jun 81 p 12]
[Text] New Plants Gambling on the Company's Future
Opening ceremonies were held on 30 May for Oki Electric's new plant at Seibu-
machi, in Miyazaki Prefecture. On this occasion, Masac Miyake, president of Oki
Electric Industry, said, "I am full of gratitude that we have been able to
observe this opening cerem4ny today. This plant site was selected from more than
several dozen prospective sites all over the country. Just as the name Seibu
- implies, this is a site blessed with pure water and clean air, and sunlight and
wind conditions are good. There is also abundant manpower, and we are fortunate
in locating in such wonderful surroundings. We intend eventually to produce
3 million units of 64K super LSI per month at this new plant. After an initial
test period, we hope to be in full production by the end of August." In this
manner he addressed the start of this new super LSI plant, on which the future
- fortunes of this company are risked.
The United States has been greatly delayed in mass production of 64K due to low
turnaround and design changes and is in the position of "going both left and
right." In contrast, three of the Japanese companies have already started mass
production, and the other three companies have adopted a policy of soon entering
the mass production race. These companies have been conducting preproduction
runs on the order of 100,000 to 200,000 units per month at their development
plants located in the Tokyo envirans. However these companies are planning to
shift their main operations to plants with the latest equipment. This will be
either at their main plants or in completely new plants where production will
eventually be aimed at the million-units-per-month level. Nippon Electric has
its No 6 Diffusion Line of Kyushu Nippon Electric; Hitacri has a plan*. at Musashi
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and another at Kofu; Toshiba has its Oita No 4 Clean Room; Mitsubishi has its
Kumamoto C Plant; Oki Electric has its Miyazaki Oki; and ~jitsu has a plant at
Iwate. The construction phase has all been completed, and the sites have
entered the test operation stage and are now counting the seconds prior to the
word "go" to start mass production in earnest.
"Top Secret" Strategy
Each company is keeping its 64K production plans "top secret" so as not to dis-
close its strategy to other companies if at all possible. "Gag rules" have been
issued. At the same time, vainly flashing its production plans by public
announcement m~y spur the still-delayed American industry to greater efforts and
rekindle the se~i.conductor conflict. Should this come to pass, it may be that
the prized IC which had been so carefully developed may wind up in some question-
able situation.
It is said that Kyushu Nippon Electric has at its No 6 Diffusion Line "knowhow
that has not even been shown to NEC workers," but already i.t is in the "stage of
full operation and mass production of 64K at the plant site is in the state of
complete takeoff." (Director Suzuki)
The register becomes positive in super LSI of micron-line width, light exposure
methods or etching methods are different, and some completely different items of
equipment are necessary. As a result, completely different equipment becomes
necessary on the one hand, while the associated technology becomes increasingly
more difficult to develop on the other. Testers who could test a 16K in
1 second without much effort require 8 seconds for a 64K. This is slowly
necessitating the development of new fa~ilities.
What is even more important is just how to maintain the highly clean state and
protect against defects caused by dust. The No 6 Diffusion Line is housed in
a three-story building in which the second floor is assigned to power chambers
which produce clean air and supply the first floor clean rooms with air condi.-
tioning at exactly 22�C and completely dust free at the rate of 400 exchanges
per hour.
This reporter was able to visit the C Building for 64K use at Mitsubishi's
Kumamoto plant. Building C is a three-story affair constructed of reinforced
steel, and it is said to be higher tha.n an ordinary five-story building. The
first floor is an open construction with just posts, and is intended for future
development. The third floor is used for inspection processes, while the second
floor is assigned to clean rooms for the wafer process. When seen from the
observation aisles, the photoregister, etching, CVD, and diffusion processes
were partitioned into separate clean rooms. The photoregister room, illuminated
by yellow light, was ventilated with clean air which swept down from the ceiling
and through the steel lattice floor in a total front-downflow mode. This air is
clzss 100 (less than 100 bits of dust larger than 0.5 micron in size per cubic
foot) or less in dust-free nature. This can go down to zero as long as humans
do not enter, and it is said that there are restrictions on the number of people
permitted, and no going between the rooms is allc,wed, just as with the No 5
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Diffusion Line of Kyushu Nippon Electric. ~tao series of photoregisters centered
in projection-mode aligners were seen within one of these chambers. It was said
that there would be five series if all had been installed. An exposure device-
stepper for super LSI use in a temperature-conditioned room was seen to tlie
other side. The stepper is slower than the pro~ection mode, but it can engrave
1-2 micron level patterns and is used for circuits in which extremely high preci-
sion is requir~d.
One Floor of Air Conditioned Chambers
After inspecting the second floor of the Nakane plant, we descended a flight of
stairs and opened the door to the lower floor. I thought I would be entering
the first floor, but the left side was taken up by offices and locker rooms,
while the right side was a wall. Upon opening a door on the wa11 side, I entered
a duct room. There were ducts of all sizes running horizontally and vertically.
There is space enough for one floor extending up to the ceiling. This is to be
expected, because the next room is an office (while above is a diffusion furnace).
It became clearly evident why the height of this three-story building was equa.l
to that of an ordinary five-story building. Light came from the ceiling between
steel lattices. The clean rooms are above. "We had some difficult experiences
in plants in the past, in that there was no space to run ducts, and so this
building was constructed with margin for future height alterations. Super LSI
- production at a high-turnaround rate is not possible unless one is willing to
spend the money to build these clean rooms," said Kimio Sato, manager of the
Semiconductor Industry Departinent.
0.2 Micron Dust Particles Also a Problem
The Toshiba Oita No 4 Clean Room is expected to start test runs this month, but
construction was still going in one section of the plant when this reporter
vi~ited, so I had no opportunity to view the inside of this place. It is said
that here again, an entire floor will be ventilated by a downflow mode. In
direct contrast to Kyushu Nippon Electric, the entire first floor will be the
airconditioning section and the second floor will be the clean room. The degree
of cleanliness will be class 10, or the same as the present dust-free chambers.
Manager Fujii of this plant said that if there are N processes involved in the
turnaround time of IC, then the turnaround time for each process will have to be
raised to tne Nth power, and unless each process is brought around to the best
level as far as turnaround time is concerned, the overall turnaround time cannot
be improved. As a result, not only the policies of the IC manufacturers but the
requirements of the mask and wafer manufacturers need to be considered, and these
are creating monumental problems.
In addition, dust particles less than 0.5 micron had been considered harmless in
the past, but it is said that the dawn of the 64K era has made it necessary to
eliminate dust particles down to 0.2 micron. To be sure, when one views a
circuit in a planar light, the settling of a 0.5-micron dust particle on a
circuit 2-3 microns wide is not of defect proportions. On the other hand, when
a three-dimensional view is considered, the oxide film of a 64K gate is about
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0.025 micron thick, and an electric field strength of 5V per power source is
- applied which is four times that of a 16K, so that the presence of even an 0.2-
micron dust particle spells disaster.
~ In any event, it became evident that every company is calling upon all the know-
how it has accumulated over the years, together with the employment of the utmost
care in the production of the 64K units.
COPYRIGHT: Nikkan Kogyo Shimbunsha 1981
2267
CSO: 4105/182
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SCIENCE AND TECHNOLOGY
JAPAN PLANS TO DEVELOP NUCLEAR FUEL CYCLE
Tokyo NIKKEI SANGYO SHIMBUN in Japanese 9, 10, 12, 17, 18 Jun 81
[9 Jun 81 p 12]
[Text] Nuclear power has now become Japan's energy pillar. Since Japan's first
nuclear pawerplant initiated operation 15 years ago at Tokaimura, in Ibaraki
Prefecture, the number of operating nuclear powerplants has increased to 22, with
total output of 10.55 million kw, generating more than 10 percent of Japan's total
pow~r demand. In order for this growth to continue, and also in order to make
nuclear power generation a stable energy resource, the assurance of uranium ore,
which is the source of the uranium needed to fuel these powerplants, has to be
maintained, along with the assurance of effective utilization oi this fuel and
proper management of the waste that is generated--all of which comprises the
- so-called nuclear fuel cycle. Japan has trod various paths in its direction
toward this fuel cycle and is now about to take the giant step toward fulfillment
of this fuel cycle from the preparative stages. Japan's nuclear power development,
which has relied so long on dependence on foreign sources, is about to enter a
turnaround position.
Steadily Advancing Strategy Formulation
The Nuclear Energy Subsection (chairman, Genso Nagamatsu) of the Advisory Com-
mittee for Energy, which is the inquiry organ for the Ministry of International
Trade and Industry, drew up the policy for Japan's future nuclear power develop-
ment in May and reported its contents to the ministry. This policy, in other
words, ma.y be termed the direction setter for nuclear power development, and the
path which Japan is to follow from here on has been defined very clearly.
The point which is most strongly emphasized is disengagement from dependence on
foreign sources, and it clearly states that the time has come for Japan to engage
in developing uranium resources and uranium enrichment in an independent manner.
Since the long-term assurance of uranium resources is a premise for long-term
assurance of nuclear power development, the all-out development of a resource
policy is a must if the projected goals are to be realized. This report states
that more than half of new uranium mineral resources will have to be from sources
that we discover and develop by one means or another.
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The report further states clearly the direction to take in uranium enrichment,
heretofore dependent entirely on foreign sources. The Power Reactor and Nuclear
Fuel Development Corporation is presently operating a pilot plant, to be followed
by the construction of a 200-250 ton SWU (separation operation unit) prototype
plant, slated for completion during the middle of the 1985 period, which is
e~ected to produce between 417 and 518 tons of 3-percent enriched uranium per
year. In addition, a 3,000-ton SWU per year commercial plant capable of pro-
ducing about 700 tons of 3-percent enriched uranium per year is planned for
operation by the year 2000, and it is planned to provide at least 30 percent of
- the enriched uranium demand in Japan from these sources.
The formulation of a nuclear power development strategy with the concept of estab-
lishing an independent fuel cycle is also being promoted by the Atomic Energy
Commission. This commission is presently revising its long-term plans for
nuclear power development and hopes to have the final plans by October. This
revised plan will take in uranium enrichment, new types of reactors, and waste
management to cover the entire range of nuclear power activities, but it is also
expected to emphasize the establishment of an independent fuel cycle, as recom-
mended by the Nuclear Energy Subsection of the Advisory Committee for Energy.
From Blueprints to Execution
This establishment of our own nuclear fuel cycle is not just another plan that is
drawn up on blueprints, and some facets of the overall plan have already been
initiated. For example, a fast breeder reactor, a second generation atomic pile
which uses as fuel plutonium recovered from spent fuel and which produces more
new fuel as it burns, and which will be the prototype for an embryonic power
reactor, is soon to begin construction.
The construction plans for the 280,000-kw output reactor, named "Monju," which
is this prototype, may suffer from the effects of the nuclear incident at the
Tsuruga powerplant of the Japan Atomic Power Development Corporation, but there
has been a rigorous safety check by the Science and Technology Agency, while the ~
_ Power Reactor and~ Nuclear Fuel Development Corporation, which is the ramrod for
this construction, has left no stone unturned to insure safety. The manufac-
turers are also paying close attention to the orders they are expected to fill.
In another direction, the electric power industry is looking foYward to the next
step, which is the demonstration reactor, and it is making all preparations to
this end.
Plans for constructing a comanercial spent fuel reprocessing plant are also well
under way. In line with the operation of the fuel reprocessing operation con-
ducted by the Power Reactor and Nuclear Fuel Corporation in Toka.imura, the Japan-
U.S. agreement of Nov~mber 1977 placed an injunction on reprocessing operations
in Japan, and since then there has been a claap on any plans for a commercial
reprocessing plant. On the other hand, the ascent of a pronuclear leader in the
person of President Reagan has raised hopes that this ban will be lifted, and
effort is being directed at plant site selection and development of equipment
for the facility.
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In addition, efforts are under way to develop a type of nuclear powerplant that
has the principal role of nuclear power which is best suited to Japan, and this
will involve getting away from advice from imported technicians and encouraging
development solely by Japanese endeavors. The modification and standardization
of nuclear power, which had been pushed mainly by the Ministry of interna.tional
Trade and Industry, seem to have been shelved temporarily while the power industry
and the manufacturers are directing full efforts toward developm~ent of reactors
which are safe and efficient and are making provisions through proper modifica-
tions, to mi.nimize human errors in case of emergencies.
The Changing Nuclear Power Industry
At the present time, any kind of nuclear power facility is faced with the very
difficult problem of siting. When an incident occurs, such as that at the
Tsuruga powerplant of the Japan Atomic Power Development Corporation, the uneasi-
ness on the part of the nearby residents is concentrated, and the siting problem
becomes even more difficult. On the other hand, when viewed from the standpoint
of safety assurance of energy, nuclear power has become an indispensable item,
and the establishment of our own nuclear f uel cycle has become urgent business.
It seems that the nuclear power industry will change in appearance as this coun-
try advances toward this goal of self-sufficiency.
[10 Jun 81 p 15]
[Text] Uranium Prospecting
The establishment of one's own nuclear fuel cycle starts with the assurance of
uranium ore. In order to insure that nuclear power will be a stable energy
source, a certain degree of self-developed supply sources must become available
to avoid complications due to price increases and export bans on the part of
uranium ore-producing companies. Domestic uranium reserves are estimated at but
9,000 tons, and presently more than 3,000 tons of uranium are required to fuel
the nation's reactors every year; thus, self-developed sufficiency will have to
involve discovering ore in foreign countries and extracting the uranium our-
selves.
Up to the present time, nearly all the assurance of uranium mineral supplies
came from power companies purchasing the ore from foreign mining companies.
Recently, however, there are indications of a shift from a uranium resources
development stage to development and import in which Japan participates.
Joint Mining Company With France
For example, the Overseas Uranium Resources (main office, Tokyo; president,
Yoshiaki Suzuki; capitalization, 5.4 billion yen) has been undertaking joint
prospecting for uranium ore with the French Nuclear Power Agency in the African
country of Niger since 1969 and already has discovered ore. A mining company,
"Acta Mining," was established under ~oint ownership of this company, the French,
and the Niger Government, and actual mining began in 1978. Annual production is
presently 2,200 tons. Japan stands to gain about 40 percent of this total.
28.
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About 850 tons were mined during 1980, and this is presently being enriched in
France. It is said that the enriched fuel will be shipped to Japan by the end
of the year.
While this next situation is not a case in which Japan participated in the
prospecting stage, there is a situation in which capital participation was
entered into a mine under development in order to assure uranium resources. The
four companies of Kansai Power, Kyushu Power, Shikoku Power, and C. Itoh and
Company entered in capital participation for the "Ranger Uranium Mine" in
Australia in September of last year, and they plan to import about 23,600 tons
over a span of 15 years starting next year.
Among the steps taken to assure "self-developed resources," business participa-
tion in mines under development can take place only when one is blessed with the
opportunity. In the case of the Australian project, it was possible only because
the Australian Government released the stocks it owned. At the present time, the
uranium market presents a depressed situation because of the siting problems
being experienced by nuclear power around the world, and it is said that some
uranium mining companies are becoming somewhat negligent. ~t?at is why there
should be a number of chances to get in on such situations, but a windfall
acquisition will not always do to assure uranium resources. There is a need for
our own prospecting efforts.
When it comes to prospecting, the competition is fierce. Director Takaharu Okuno
of the Foreign Survey Office of the Resource Department of the Power Reactor and
_ Nuclear Fuel Development Corporation, relating his bitter experience, said,
"There is an incident in which the hint of a uranium mine was obtained while
prospecting in western Australia, and this information leaked out by chance.
The very next day, mining companies associated with E~on and British Petroleum
applied for mining rights in the adjacent regions."
Co~ete With the Majors
Furthermore, a recent development in uranium resources is the eyecatching advance
of the majors (oil capital) into the field. For example, it is said that Gulf,
E~con, and Getty type uiajors have all but cornered American uranium mines, and
there are other activities throughout the world revolving about the major axis
in exploring the world's crust.
In the midst of such a situation, probably about the only area where Japan has
been able to develop uranium mines with p rivate funds is the Afast region of
Niger. Prospecting involves the search for uranium ore by manual groping, and
until very recently it required 10 years from the time a vein is discovered until
the mine is developed, involving great risk. This is why it is difficult for
private business to develop this field, and almost all of Japan's developmental
activities are in the hands of the Power Reactor and Nuclear Fuel Development
Corporation. The prospecting areas are distributed in seven countries, including
the United States, Canada, and the Republic of Mali in Africa; the total
[prospectingJ area is roughly 370,000 square kilometers, very nearly the area
of Japan itself.
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Since the prospecting must cover wide expanses with no roads and far from human
habitation, the corporation is pushing the development and introduction of new
instruments. These include apparatus which can be used for a quick analysis of
borings, to enable a decision on the next strategic step, and a laser analyzer
that can quickly detect any abnormal changes in uranium content of water
collected from a boring.
On the other hand, a system to smoothly tie together the results of prospecting
and mine development is also making progress. A group of 31 power companies,
mining companies, and commercial companies and the Power Reactor and NucJ.ear Fuel
Development Corporation co mprise two government-related organs which make up the
Uranium Resources Assurance Countermeasures Committee (committee chairman, Toshio
Ito), which is gathering information on uranium resources and selecting promising
projects. At the present time, "there are a number of sites which look favorable
for mine development, but they all have very short veins and great depth, and
thus are not suitable for mine development" (office manager Kyoji Mizumachi).
This committee seems like ly to stand at the central position in "self-developed
resources" assurance.
Domestic Situation Faces a System Wall
Where domestic uranium resources development is concerned, an interested party
stated that the "Power Reactor and Nuclear Fuel Development Corporation, which
conducts prospecting, is restricted by government budget limitations and cannot
conduct active prospectin g very well. At the same time, it has little experi-
ence compared with the Westarn world outfits, and this is another weak point.
On the other hand, where advances through private efforts are concerned, there
are some subsidy funds such as the Metal Industry Work Group's awards for suc-
cessful ventures, but when the mine development stage is involved, they cannot
receive any help from the Development Bank unless they have assurance from the
- power cumpauies that these power co~anies will purchase the uranium which is
mined; this, together with the problem of price fluctuations, compounds the
risks." This type of sys tem needs to be reassessed if a stable plan for long-
term "self-developed reso urces" assurance is to be realized.
[12 Jun 81 p 14]
[Text] Uranium Enrichmen t
"Japan's uranium enrichmen t technology seems to have been pointed at the right
direction from the outse t. Such being the case, in the event we enter commercial
production, we should be able to hold our own in international competition" (one
of the top research officials of a large electric power company). Uranium
enrichment i~ treated as a top secret order of business by many countries, and
they hate to allow techno logical information to leak out to foreign areas. It is
in the midst of this situation that Japan, which worked independently on its own
technology, has been able to come up with something that is very highly valued.
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Ultimate Goal: 12 Tons per Year
The light caater reactor, which is the nuclear powerplant most wldely used at Che
present time, uses fuel in which "burnable fuel" in the form of uranium 235 ia
enriched to the level of about 3 percent. The uranium 235 content of natural
uranium is but 0.7 percent. Uranium enrichment is the technology whereby natural
uranium is the starting material in which the fraction of rhe "burnable" compo-
nent is built up to 3 percent. There are a number of different methods For
achieving this enrichment, including gaseous diffusion and gaseous centrifuga-
tion; the method selected by late arrival Japan was gaseous centrifugation.
Uranium gas is introduced into a cylinder which is rotated at high speed, much
like the spin dryer of a washing machine, and the difference in densities of the
two types of uranium is exploited to achie~re this enrichment.
The brunt of the development to date has been borne by the Power Reactor and
Nuclear Fuel Development Corporation, and after a stage of basic researeh the
study blossomed into a national project in 1972. After a series of small-scale
experiments at a facility in Tokai, located in Ib araki Prefecture, consfiruction
was started in the fall of 1977 on a pilot plant at Ningyo Toge, in Okayg~,
Prefecture. Plans called for initiating operation in 1979 of the roughly 1,000
centrifugal units which are part of the so-called OP-1A unit, and a second unit,
the OP-1B, with roughly 3,000 ce:~trifuges and 1.5 times the performance, was
installed and put into operation in the fall of 1980. At the present titne, still
another unit, OP-2, with twice the performance of OP-lA with about 3,000 ~entri-
fuges has been installed. This operation is expected to be terminated in October,
and the performance of this pilot plant is estimated at a final vaiue o~ SO tons
SWU (separation operation unit), which would mean that approximately 12 tons of
3-percent enriched uranium could be produced per year. Actual enrichment is
being conducted with the centrifuges already under operation, and about 3 tons of
enriched uranium has been produced. One ton of this enriched fuel was shipped out
in April for use in the new prototype converter reactor "Fugen."
Aim at Demonstrating Reliability
With the orderly progress in pilot plant plans and with the favorable evaluation
within the country, there is an active movement toward commercialization. At the
present time, the Atomic Energy Com~nission has established a domestic production
- group for uranium enrichment and is working on a prototype plan which will be the
seedling for the next-step com~ercial plant. Although the details of this plan
have not been set, its scale will be of the order of 250 tons SWU, which should
produce roughly 60 tons of enriched uranium--sufficient to fuel 2 million ~
class reactors for a year.
Emphasis is placed on the establishment of production technology and operating
technology and on the demonstration of economic operation and reliability where
this prototype is concerned, and these plans are expected to be definite this
summer. If things go well, construction could start as early as next year~ With
completion expected by about the first part of the decade beginning in 1985,
The type of construction seems to carry over from developments of the past in
embodying the so-called Power Reactor and Nuclear Fuel Corporation concepts,
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l~ut there is a chance that some purely private concepts might enter the picture
where commercial plants are concerned.
Preparations are already under way for the next step, which is the commercial
plant. The Federation of Electric Power Companies set up a uranium enrichment
preparation office last March to undertake surveys on trends in supply and
demands for uranium enrichment and price trends, as well as to make preparations
to establish a company. According to Takegi Kawato, director of this federation,
"This office will probably function for 1 or 2 years before entering into site
selection by 1985."
While we must await future develop~ents before any idea of the scale can be
expected, about one-third of the total enriched uranium required to operate the
nuclear reactors in Japan by the year 2000 is expected to be supplied by domes-
tically enriched material, according to the report of the director of the Nuclear
Power Section of the Advisory Committee for Energy, and this may become the sound-
ing block.
Manufacturers Also Establishing Own Systems
Where the manufacturers are concerned, they too are laying specific plans to
establish their systems for future operations. The three centrifugal separation
equipment manufacturers, Tokyo Shibaura Electric, Hitachi Limited, and Mitsubishi
Heavy Industries, established their UC engineering office (manager, Masayoshi
Matsumoto) as a preliminary to a joint company devoted solely to the production
of centrifugal separators. "Plans for future development starting with the
prototype plant have now been clearly formulated, and we will set up this company
once it has been established that this plant will ma.ke it" (Yoshiro Tsutsui,
director of the Nuclear Power Industry Department of Hitachi Limited).
Not only are domestic plans involved where uranium enrichment is concerned, but
, there also is a joint business concept with Australia. This is a concept in
which a plant will be constructed in Australia, which is a resource-laden country,
using Japanese technology; joint surveys on the part of both countries have
already been completed. At the present time, this country is awaiting Australia's
answer as to whether it will actually participate in the direction of this con-
cept.
At the same time, attention is also being directed toward the development of new
technology. Construction was started in April at Himuke, Miyazaki Prefecture,
on a model plant which will employ a"chemical enrichment method" using an ion
exchange membrane developed by Asahi Chemical Industry. Although this scale is so
small--on the order of 1-2 tons SWU--that centrifugal separation protagonists
have not paid this method too much attention, this method of separation may serve
in a supplementary role to the centrifugal separation method, and it also
possesses potential as an exportable item to developing countries.
At the present time, the world's enriched uranium production capacity includes the
26,000 tons SWU of the United States, which is the top producer, the 7,000 tons
SWU of the EURODIF Company of Europe, and the 400 tons SWU of the Yurenko Company.
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The present situation is one of overcapacity because of difficulties with regard
_ to nuclear plant siting. On the other hand, all of these plants are looking to
an expansion in plant capacities, in view of the supply-demand imbalance of the
United States. Japan is developing its capabilities step by step, keeping in
view these activities in the Western world.
[17 Jun 81 p 12]
[Text] Light Water Reactor
Japan is continually planning to disengage itself from dependence on American
technology in the operation of its light water reactors, which make up the main
force of its nuclear power reactors. The power companies and manufacturers,
disgusted with the frequent occurrence of malfunctions during power ganeration,
have embarked on a program to alter this situation of complete dependence upon
American technology and to develop a light water reactor more suited to this
country. The results of their efforts are beginning to come forth. This desire
to modify and develop is very strong in every company, and it seems that Japan,
which has depended completely on American technology, is finally beginning to
emerge from the shadows of this dependence and stand on its own feet.
Improvements in Line With Japanese Situation
The standardization of modifications of nuclear reactors introduced from the
United States was the icebreaker in this program of disengagement from American
technology. The Ministry of International Trade and Industry took the lead in
this process with the participation of Mitsubishi Heavy Industries, which intro-
duced the Westinghouse pressurized water reactor (PWR), and Tokyo Shibaura
Electric and Hitachi Limited, which introduced General Electric's boiling water
reactor. These parties started in on a program to modify their respective
reactor types to something of higher reliability and safety more suited to
Japanese conditions.
This program was divided into two phases: a first phase which lasted through
JFY 1980, and a second phase which followed. There were more than 30 improve-
ment items, and the results have been such that "the quality and performance of
nuclear fuel produced in Japan are already the best available in the world"
(according to Narimi Kokura, director of the Light Water Reactor Technology
Department of the Prime Nlover Industry Division of Mitsubishi Heavy Industries).
He was referring to the kind of results that have been obtained.
There are also some independent developments which seem to be one step ahead even
of the "main house," which is the United States. "Even a giant system such as a
nuclear powerplant can be operated safely by just one operator, by introducing a
central control system which has been developed. Should some abnormal operation
take place somewhere within the system, this site is immediately pinpointed;
automated operation and abnormality predictior~ also are possible. It seems that
GE is trying to develop a similar system, but the present development is com-
pletely due to our own efforts. We even feel that our system is superior"
(Yoshiro Tsutsui, director of the Nuclear Power Industry Department of Hitachi
Limited).
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This vaunted "central control system" is a completely new system which follows
the readings of all the instruments from the central control room and displays
them on Braun tubes. Computers are utilized to display the system diagram on a
Braun tube in color, and any abnormality is displayed in a different color so
that the operator will know immediately and be aware of this abnormality. The
different data are given in graphic display, and the operating state and trends
can be seen in a glance. The failure to spot the site of a ma.lfunction resulted
in a major disaster in the case of the Three Mile Island nuclear power incident,
but the manufacturers stress that this system can be exploited to clear up human
errors.
Toshiba, Hitachi in Production
This system had already been developed by Toshiba in 1973 ahead of Hitachi
Limited, and the preparations of the BWR group have been completed. It has been
decided to install this system in the No 3 and No 4 units of the Tokyo Power
Company's Fukushima No 2 nuclear powerplant, slated for completion in 1985, and
- both companies have started production. When completed, we will surpass GE and
have the first practical system in the world," said Tatsuro Omura, chief techni-
cian of Toshiba's Nuclear Power Department. It is said that this development
was made without any communication with Westinghouse, which had provided the
original BWR technology.
The Ministrv of Inter.zational Trade and Industry has been providing subsidy funds
to powerplant manufacturers and has embarked on a S-year plan starting in 1980 to
develop operating support systems for powerplants. This system teaches operators
the proper operating procedures in the event of malfunctions or accidents in
nuclear powerplants, and its objective is to completely eliminate the possibility
of human errors. This system will most probably be incorporated into the central
control system, where a display on a Braun tube will be one of the mechanisms
employed. Ma.nuFacturers are showing great interest in the independent develop-
ment of this project.
While Japan is not alone in this respect, Japan's industry is playing a central
role in initiating plans to improve the nuclear reactor main bodies, including
those from the Ifiited States. Six power companies--including Tokyo Power, along
~ with Toshiba, Hitachi, and GE--are participating in the ABWR (new-type boiling
water reactor) development project, in which a total of 10 billion yen has been
earmarked to develop a"definitive" BWR for easy operation and maintenance.
This project envisions moving the recirculating pump for coolant water cycling
inside the nuclear reactor pressure vessel, thereby simplifying the shape as
well as facilitating production, and the incidence of cooling system ruptures
is expected to be reduced. There also are plans to control fuel burnup in a
more precise manner. Consensus on the basic goals has been reached by the
participants, and a start may be made sometime during the year if all goes well.
This development is planned over a S-year period, and ABWR technology is
expected to be established by 1985.
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"Medium to Small" Developments
There is also some movement toward developing medium and small light water
reactors for multipurpose applications such as power generation for own plant
use or hot water utilization. The Ministry of International Trade and Industry
is very active in this promotion and is planning to set up a developmental
survey committee on medium and small light water reactors for multipurpose
applications in the near future and go as far as industrialization surveys cn
medium and small reactors. Nuclear power production presently is beset with
siting difficulties, and even medium and small powerplants will be difficult to
site, while their space utilization efficiency will be much worse than with
large powerplants. Furthermore, as evidenced by the bombing of the nuclear
powerplant in Iraq, there are risks associated even with exports. This is why
there has been considerable criticism by the industrial world regarding the
intent of inedium and small type reactor development, but there seems to be little
objection to a survey intended to determine whether this development has a
future .
It has already been more than 10 years since a light water reactor was introduced
into this country. During this interval, this country has experienced a large
number of difficulties, as evidenced by the very recent radioactivity leakage
incident at the Tsuruga nuclenr powerplant of the Japan Atomic Power Development
Company. Japan's nuclear power industry has used these accidents and troubles
of the past as training materials for the development of an even better system,
and it hopes to surpass even the "main house" with respect to quality and per-
formance in the future.
[18 Jun 81 p 19]
[Text] Reprocessing
Difficulties haunt the reprocessing of nuclear fuels which have been burned in a
nuclear powerplant to recover the plutonium. Besides the technological problems
which have to be overcome, there are also the "shackles" imposed by the i3nited
States, which cannot solve its own internal problems. These problems are caus-
ing people all kinds of grief. On the other hand, with the rise to the presi-
dency of Reagan, a nuclear power promotion advocate, hopes have risen that these
"shackles" will be eased, and the nuclear power industry of Japan is finally
showing some life toward co~nercial fuel reprocessing.
United States Holds Prime Authority
Where Japan's reprocessing future is concerned, the United States, which is one
of the countries which supplies Japan with nuclear fuel, and which has the con-
tract to provide enrichment service, holds the deciding vote. The United States
maintains authority over the handling of the nuclear fuel it supplies Japan and
has the power to interfere with any of Japan's reprocessing activities. The
United States exercised this power when it curtailed operations of the
reprocessing plant operated by the Power Reactor and Nuclear Fuel Corporation
at Tokaimura in Ibaraki Prefecture. "Shackles" were placed on the operating
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period and the reprocessing volume of this plant in September 1977. Further-
more, there was the edict banning "any conspicuous activity" toward the con-
struction of a cou?r~ercial reprocessing plant.
There is no basic change in this situation at the present time. The limitations
on the operations of *_he Tokaimura reprocessing plant have ~een modified four
times since the original ban, and the scale wi~l have been expanded by more than
a cumulative total of 149 tons over the initial limit as of October of ~his year,
but the "shackles" on this facility and commercial plants still remain. On the
other hand, President Reagan has given his O.K, to reprocessing and plutonium
utilization within the Ihiited States and is in agreement with the removal of the
"shackles" imposed upon Japan. Thus the present flow of events is changing to a
trend favorable to Japan. This is why there is naturally great interest being
_ stirred up among the reprocessing people in Japan.
For example, a Power Reactor and Nuclear Fuel Development Corporation official
close to the reprocessing activities indicated his high hopes by saying: "We
would like to see all limits removed from the operating perio3 and reprocessing
volume that have restricted operations at the reprocessing plant in Tokaimura.
We look forward to a complete removal of limitations on Japanese reprocessing
activities, including commercial reprocessing plants, a.t the next Japanese-
American conference." The total quantity of fuel processed thus far at the
Tokaimura reprocessing plant falls short of 90 tons, which is still below the
limited amount, and the limiting period has been extended each time. Thus there
has been no actual harm from these "shackles." On the other hand, the present
hassle concerns the removal of the pressures caused by these psychological
"shackles."
Private Facilities by 1990
Let us now look into the activities of the Nippon Nuclear Fuel Service (main
office, Tokyo; president, Kiyoshi Goto; ca italization, 10 billion yen),
organized last year for the purpose of engaging in commercial reprocessing plant
construction and operations. Director Yobei Watanabe of the Plans Department said,
"We hope to start construction of a reprocessing plant by 1985. Construction is
expected to take about 5 years. We have targeted 1990 as the completion date.
We i.ntend to employ the best technology available in the world in this plant.
Accordingly, we will adopt 'all-Japanese' line of thought and will promote
equipment development and manufacture all over JaPan. We intend to introduce any
superior technology which may be found abroad, but since Japan has superior qual-
ity control, all manufacturing will be delegated to Japanese companies." Thus he
spoke very positively about the timetable and the plans for the plant.
The reprocessing plant which this company plans to construct will have an annual
capacity of 1,200 tons; thus it will be able to reprocess the spent fuel from
40 million kw class reactors. The area required for this plant will be 1.6
million square meters; the plant will be provided with docking facilities to
accommodate a 3,000-ton ship; and there will be storage facilities for 3,000 tons
of spent fuel. Blueprint nlanning is said to be progressing smoothly. The basic
plans for the plant and equipment development have finally started assuming real
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advances. It is said that contract research funds granted by the Ministry of
International Trade and Industry will be used to test-produce actual-size
equipment to be used in the plant construction.
Selection of a site for this plant is also being pushed, in addition to the
~ basic design and equipment development. This siting will probably be the most
_ distressing problem to be faced by the people concerned.
"The process of 'bride' selection is extremely difficult. As far as I am con-
cerned, it would distress me no end if a bride were to refuse me. Even after
marriage, it may happen that we are not compatible, and divorce is no easy solu-
tion. While there are prosective candidates, it will be quite a hassle before
both sides get to understand each other," said director Watanabe as he revealed
his inner thoughts by likening the siting to [choosing] a"bride." This company
- hopes to have this siting problem out of the way by the end of next year at the
very latest, so that its construction schedule will not be delayed, and the
selection process will assume gigantic proportions from here on. There is a good
likelihood that the selection process has narrowed down to prospective sites in
- the Kyushu area.
Speed Up the Establishraent of Utilization Technology
There is also a rebirth in the development of technology for utilizing the
plutonium that is~obtained from reprocessing. The Power Reactor and Nuclear Fue1
Development Corporation produced 16 fuel elements to fuel the prototype of the
new-type converter reactor "Fugen," using plutonium produced at the Tokaimura
reprocessing facility. These have already been delivered to the reactor site,
and the first domestically produced nuclear fuel using plutonium made at home
will be loaded into the reactor.
The Power Reactor and Nuclear Fuel Development Corporation developed a new method
of producing plutonium fuel called the "uranium-plutonium mix conversion method,"
- and it has gone into construction of a fuel manufacturing facility employing this
method. It has been said that the risk of nuclear proliferation is great if
plutonium alone is used in fuel, so the final product of the reprocessing plant,
plutonium nitrate solution, is mixed with uranium trioxide powder, from which a
uranium-plutonium oxide product is obtained. "We simply applied the principle
of the electronic range. There is no waste solution, and the process is simple.
This is thought to be the best protection against nuclear proliferation," boasted
Takao Tsubotani, director of the Plans Section of the Nuclear F~el Department.
The only nuclear reactors to date which will use plutonium fuel are "Fugen" and
the "Joyo" fast-breeder experimental reactor. This is why there have been no
plans for immediate transfer of plutonium utilization technology to private areas.
With the future promotion in reprocessing plans, there will probably be greater
strides toward the establishment and stabilization of plutonium utilization
te chno lo ~y .
COPYRIGIiT: Nihon Keizai Shimbunsha 1981
2267
CSO: 4105/190
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SCTENCE AND TECHNOLOGY
JAPAN'S BIOMIMETIC INDUSTRY MAY LEAD THE WORLD
Tokyo NIIQCTI BUSINESS in Japanese No 295, 29 Jun 81 pp 130-132
[Interview ~vith Zenichi Yoshida, Kyoto University professor, by Koichi Shiraishi,
deputy managing editor of NIKKEI BUSI~;ESS; date and place not given]
[Excerpt] Clarification of Enzymatic Functions and Synthesis of Enzymes
Methodology Diff ers from Biotechnology
Shiraishi: Please tell me about the steps involved in research, citing some
specific examples.
Yoshida: Let us suppose that here is an enzyme. First, the function of this
enzyme will be identified. With a known molecular structure, it is possible to
synthesize an enzyme which may be able to work better than the original enzyme.
This is what we call a synzyme (synthetic enzyme).
Shiraishi: In what fields do you think this can be made practical?
Yoshida: I believe that this can be made practical relativPly sooner in the fields
of inedical drugs and agricultural chemicals. To be more precise, let me say
medical substances, rather than medical drugs. It is possible to make something
that is effective in preventing sickness and in maintaining good health.
Functional substances exist in traceable amounts in living bodies, but they ha-�e
not yet been identified. If these substances are identified by clarifying the
functions of living bodies, they can be synthesized and can contribute to the
maintenance of good health. Fur~hermore, it is chemically possible to modify part
of the structure, and this eventually can produce artificial substances more
effective than the natural substances that support life in a living body.
For instance, a multipurpose antibiotic named cephalosporin has drawn world
attention. It is thought to be the miracle drug of this century. It is based
upon Cephalosporin C, produced by a microbe. This is a natural product. By
hydrolyzing this to remove C and adding somethiug different to it, a product
which is almost 100 times more effective than the natural substance can be
ob ta ined .
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- Shiraishi: This science then is si~ailar to the concept of biotechnology that
something useful for mankind is produced by utilizing a living body.
Yoshida: That's true, but its methodology is different. In biotechnology, ti~e
living body itself is utilized. However, because it is the living Uody, ther.e is
a limit to production. For example, it is impossible to increase production five-
fold. Also, substances in biocells are extracted. In breaking the cells, the
contents are often destroyed. In this aspect, the biomimetic chemistry that we
study may be a science that is beyond biotechnology--a final method.
Beyond the Realm of Biofunctions
Aiming Principally at "Production" of Effective Substances
~ Shiraishi: Genetic engineering is workable only in the framework of biofunctions.
In contrast, biomimetic chemistry breaks out of this restriction, artificially
creates more efficient functional substances, and manufactures them on an indus-
trial production basis. Is this the picture of science you are trying to explain?
Yoshida: Exactly. Professor Breslow of Columbia University is the originator of
the term mimetic chemistry, but American and European thinking is still preoccupied
by the first stage of understanding biochemistry at the molecular level. We, on
the other hand, intend to add human wisdom to biochemical results to produce
useful substances. This is our basic idea. Evidently we can say that we are
one step ahead of the E.uropean and American level. We are burning with a desire
to create something new which will entitle us to call the 21st century the era of
Japan.
Shiraishi: I understand the Ministry of Education awarded a special research aid
to this study beginning in FY 1980. What are the details of the research to be
conducted here?
Yoshida: There are eight groups. Among them, there is a group in charge of
research and development of artificial blood and a group in charge of studying
_ metal catalysts specific to living bodies--that is, enzymatic metals that serve
as a catalyst. Also, there is a team which is in charge of studying biofunctions
themselves and developing synthetic enzymes. One group is in the field of
biofunctional materials research. For e~mple, it is possible to seek
conductive materials in living bodies.
Shiraishi: Can you be more specific about the artificial blood.,.? How i.s it
different from what the Green Cross has started doing?
Yoshida: The artif icial blood developed by the Green Cross is for emergency use.
It is soon discharged outside the body. In comparison, the purpose of the work
being done in the biomimetic field is to understand the mechanism of blood that
carries oxygen and to produce blood with a more efficient carrying mechanism.
Specifically, hemoglobin in humans is the carrier, hemo is extracted, and the
human globin is used. Since tre proteins are not changed, this new blood will
not be influenced by biood type.
39
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Widely Applicable Enzymes "Activation"
There May Come a Day When Reagents Are Ousted From the Chemical Industry
Shiraishi: What can we achieve by practicalization?
Yoshida: Long-term preservation will become possible. At present, the preservation
of blood for transfusions is limited to 2 weeks. Besides, some illnesses are
caused by the reduced carrying ability of the blood. These problems can be solved
by the use of this artificial blood. Even with a healthy body, if this blood
is transfused to, for example, an athlete, his record will show remarkable
progress. Serum hepatitis can be prevented.
Shiraishi: I have heard that the future plant system will be changed by biomimetic
chemistry. What does that mean?
Yoshida: Petrochemistry is now encountering a curve, for one thing, because of
the pollution problem, and because of the limitation of oil resources for
another. This is where the idea of utilizing metal catalysts specific to living
bodies comes in. For example, silver currently is used as an oxidation catalyst
for producing ethylene oxide from ethylene. Since it is activated by oxygen,
naturally the ethylene is also burnt. Tbus the effective utilization ratio of
the ethylene is curtailed. Another problem is that silver is effective only on
ethylene. There are plenty of olefins, but silver is not effective on others
and cannot be used for the development of fine chemicals. In this respect,
catalysts which utilize activators in enzymes exhibit widely applicable effects.
Ordinarily, reagents such as chlorine, water, and soditua hydroxide are required
when compounding olefins. The point of tom~rrow's chemir_al industry is to get an
objective compound using as few reagents as possible. That's why we are trying
to use enzymes instead of reagents.
Great Contributions by Combined Academic Research Organization
Continuous Aid From the Government Necessary for at Least 10 Years
Shiraishi: You don't see these ideal types in natural enzymes, but you try to
add desired functions to produce what you want.
Yoshida: True. Natural enzymes work only on one substance. This is fine in
living bodies, but it will not be convenient for industrial use without univer-
sality. Efficiency is purused. F.ventually, in the 21st century, a quiet,
steamless, efficient production system that operates at normal temperatures will
emerge, in contrast to today's process of th~ chemical industry. What will bring
about this revolution will be the catalysts which utilize enzymes.
Shiraishi: Eight groups are working very extensively in the field of advanced
technology--a very unique joint academic research organization. Does it work
well?
40
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Yoshida: I believe this organization is the first of its kind. It covers
practically all the natural sciences--pharmacology, medicine, engineering, science.
and agriculture. Furthermore, we asked for the participation of professors in
major universities from north to south. It may work well, because we spent
several years consolidating the foundation of the organization. Unfortunately,
however, aid from the Ministry of Education will be cut off after FY 1982. We
could achieve great results if we could maintain this setup for at least another
10 years.... I say this because, as I have mentioned before, American research
efforts haven't gone beyond the clarification of biofunctions, while Japan is
_ far in the lead in the subsequent development of research. The industrialization
of biomimetic products is no longer a dream at the end of the 20th century, and
this biomimetic seed will flower as a new industry in the 21st century. I wish
there could be a governmental aid system and an industrial support system for a
science like this. I hope the Ministry ot International Trade and Industry and
the Science and Technology Agency will succeed the Ministry of Education in the
task.
Joint Academic Research Leading To Joint Industrial Technology
Opportunities for Japanese Technical Scientists To Exercise Their Creativity
Shiraishi: We worry and complain that Japan missed the chance to get on with
genetic engineering. But in biomimetic chemistry, we are in a position to export
technologies to Europe and America, aren't we?
- Yoshida: To tell you the truth, we once led the world in genetic engineering.
We were ahead in recombination by f ixed enzymes. The issue of gene manipulation
was raised, however, and our research was canceled. Meanwhile, Europe and America
caught up with Japan and reversed the position. They took hold of the basic
field. However, confronted with industrialization in the days to come, European
and American manufacturers will ask Japan's help in production. After all, Japan
surpasses others in fermentation engineering.
In the future, we need a method to develop domestically an advanced technology in
order to follow through a science which has been created for the first time in
. the world. This joint academical research must produce joint industrial tech-
- nologies. In the past, both the science and the technology were imported. We
did not know the process of formulating the sciences or producing the technology.
We blame the lack of creativity for this ignorance. Even though we are at the
world's foremost front in the sciences, the achievements will be snatched away
to Europe and America unless industries are ready to accept them and offer some
support. We would like to get on with our research as a long-term project and to
see it bloom as a technology that can be offered to Europe and America.
41
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CSO : 4105 /202
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SCIENCE AND TECHNOLOGY
ENTERPRISES IN GENETIC TECHNOLOGY EXANIINED
Tokyo DIAMOND'S INDUSTRIA in English Vol II No 7, Jul 81 pp 31-34
~Text~
Ajinomoto made it clear.on November escherichia coli and incorporated with
12, 1980, that it created for the first the gene carrier, called plasmid, and
time in the world a new sort of cultivated in another kind of strong
escherichia coli which produces pure escherichia coli. Usually, such anti-
amino acid. Although the company biotics as chloramphenicol are used
has so far been conducting research on for cultivation, but Ajinomoto estab-
genetic technology without publicizing lished techniques for enriching and
it, the company seems to have a policy taking out threonine only after adjust-
of starting full-scale research on the ing culture fluid. Since the new
- matter on this occasion, thus attract- method is different from the conven-
ing the attention of the circles con- tional one using the above antibiotics,
cemed. Ajinomoto is the first com- the safety of threonine is ensured.
pany to announce publicly and con- And when it is utilized for industrial
cretely the name of a product manu- pucposes, the removal of antibiotics
factured with genetic technology. from the product is unnecessary, thus
There is a strong impression that eliminating a factor contributing to an
Japan has been far left behind by firms increase in production cost.
in the United States and Europe in In producing amino acid by the
this field of business. But Ajinomoto ordinary fermentation method, the
is the second successful private com- process of separating and refining was
pany in the world next only to unavoidable because the method has
Genentech of the United States. shortcomings of producing impurities
And the pure amino acid is the fifth other than the amino acid to bc
new product of genetic technology, produced. But the new method does
following somatostatin, insulin, not make impurities, and the quality
growth hormone and interferon. of the product is almost as good as
What Ajinomoto produced success- that of final products (with threonine's
_ fully by means of escherichia coli is purity reaching as high as 99%).
a sort of pure amino acid, threonine. Since the rate of yield from refining
It is difficult to produce threonine is so high that the production costs can
by conventional fermentation be lowered greatly. In addition, it is
methods. According to the new possible to produce twice the amount
I method, genes to produce amino acid of pure amino acid per unit. This
are separated from a sort of rreans killing three birds with one
stone.
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Production is still in the experi� technology, whose safety is at the
mental stage and it is only after highest level of P III. There is a high
a large industrial plant has been set possibility of the company developing
up that the company can enjoy such epoch-making new products other
merits of production by the new than amino acid, such as pharmaceuti-
method. But the fact that Ajinomoto cals, by using genetic technology.
has announced the above prospects for '1'his spring the central research
future production is of the greatest institute developed an epoch-malcing
significance. new method of preventing, without
There are other notable points in using anti-biotics, the "faL' of incorpo-
Ajinomoto's techniques, with which rated genes," which was a bottleneck
it succeeded in having escherichia in applying genetic technology to
coli produce threonine. The company actual production. The new method
tackled genetic technology as a con- will make possible stable and con-
tinuation of its previous business tinuous production at large plants,
instead of developing new pharmaceu- thus carrying a step further toward
ticals which would take long time for a commercial production through the
clinical demonstration and five to ten application of genetic technology.
years before contributing to the com
pany's business results. Amino acid is
not such high-priced items of inerchan- New Drugs by Using Escherichia
dise as insuline and interferon, which Coli
are traded in terms of milligrams, but
it is an item for the masses, so to Mitsubishi Chemical Industries Ltd.
speak, and handled in terms of kilo- T'?le company which has the largest
grams. Since Ajinomoto is undisputa- accumulation of bio-technology in
bly the top maker uf amino acid, Japan is Mitsubishi Chemical Indus-
enjoying a world market share of 70�Io tries, the leader in the chemical
to 80%, it could not fall behind other industry. The company exceeds its
maker~ in devising a new production rival, Sumitomo Chemical, in terms
method. of sales but falls behind in the field
In other words, it was necessary of fine chemicals, such as pharmaceu-
for Ajinomoto to tackle genetic ticals and agricultural chemicals.
technology in order to develop the Mitsubishi Chemical Industries plans
most up-tadate techniques to main- to develop epoch-making new
tain the company's superiority in pharmaceuticals and new production
amino acid production. methods by using bio-technology as a
In this sense, Ajinomoto intends to leverage and keep the position of the
apply the new techniques to the top general maker of chemicals.
production of other sorts of amino Mitsubishi established Life Science
acid, including tryplophan jointly Department in its headquarters on
developed with Kyodo Shiryo Co. It October, 1980. It was the first Japa-
is expected that Ajinomoto will attain nese firm to establish such a formal
good results in its development efforts. section in an effort io commercialize
Originally, fennentation business is life science. It surely has clear pros-
the speciality of the company whose
pects for attaining its goal.
- techniques are at the top level in the 'I'he history of the company's
world. It has a central research research on life science dates back to
institute staffed by 600 researchers 1971 when Mitsubishi Kasei Institute
and other members and it has recently of Life Science was established. [t
completed a laboratory on genetic was set up with the foresight and
44
,
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decision of the late President Hideo The facilities of the P lli class have
Shinojima. The previous chief of the the highest-level safety among those
institute was Dr. Fujio Egami, an in the private sector in Japan.
authority on biochemistry in Japan. Facilities of the P II and P I classes
Under his guidance, the institute has are already in the institute. But the
been continuing research mainly on compatry decided to construct the
DNA and neurolo~cal function, and P III fac~ities, as obligated by national
it has obtained two patents related to guidelines for experiments on incorpo-
genetic technology - one regarding rating mammal genes with escherichia
the process for refemng of plasmid coG, since such experiments are indis-
and the other for referring of proto�� pensable for developing higher applica-
plast. Eight of the 42 patents gianted tion technology.
in Japan by the end of last year were At the same time, the company
those of Japanese firms. So a quarter announced a plan to have escherichia
of them are owned by Mitsubishi coli produce new pharmaceuticals by
Chemical Industries. It can be said that using genetic technology. The com-
the company is a leader in this field. pany plans to establish within this year
Since the institute has achieved techniques to have escherichia coli
- such remarkable results in the period produce two kinds of new internal
of ten years, the company thought active metabolite which are created in
the time has come to move from basic human body and to start their pro-
studies to commercial produetion and duction as pharmaceuticals as early
set up the Life Science Department ds possible. It was the first time that
to smooth the transition. In Novem a concrete plan on the development of
ber, 1979, the "scholar" chief of the new pharmaceudcals with genetic
institute was replaced by Vice technology had been made public in
President Makoto Niwa, who had been Japan.
in charge of research and development It has not yet been disclosed for
at the head office. (He is a doctor of vvhat diseases the new pharmaceuticals
science, who majored in catalyzer are, but Mitsubishi Chemical Industries
chemistry at the Science Department says they are not interferon, insuline
of Tokyo University and graduated or growth hormone. At any rate, the
~ from it in 1938.) The move, intended company intends to start a clinical
to unify basic studies and the applica- demonstration in about three years
tion of technology, shows that the and produce pharmaceuticals in about
- company is quickly heading for the six to seven years at the earliest. But
goal of putting genetic technology to there is a gtrong possibility that the
practical use in the 1980s. company will apply the technology
While reorganizing its structure earlier to the improvement of produc-
and re-locating personnel, the com- tion processes in petrochemical and
pany announced at the end of last year chemical industries than to the pro-
that it would complete by the middle duction of pharmaceuticals which will
of this year highly-safe P III class take a long time.
facilities for experiments in order to 'The company is also branching
strengthen research on genetic tech- out actively into the field of pharma-
nology. The new facilities to be used ceuticals produced by conventional
jointly by Mitsubishi Chemical Indus- methods. Investing in Key Pharma-
tries and Mitsubishi Kasei Institute of ceuticals of the United States in 1979,
Life Science is to be built at the site the company has been engaged in joint
of the institute at Machida, Tokyo, research with the U.S. firm. Late last
45
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year, they succeeded in developing a ~~ng at Using Bio-Techflology
new anti-asthma drug. Mitsubishi for C1 Chemistry
Chemical Industries is forming a
pharmaceutical sales network through
capital tie-ups with existing drug M~~~ ~8 Chemical Co� Inc,
makers. It acquired 1,400,000 shares The eon~pany has decided to embark
of Nikken Chemicals in July, 1980, oa reseatch on genetic technology,
and 4,000,000 shares of Tokyo aimed at using bio-technology for
Tanabe in February this year. C1 chemistry (chemical compounds
with one carbon molecule). In Japan,
Techniques for Producing an pharmaceutical and foodstuff makers
Immunity Diagnosis Drug by and chemical companies have begun
Hybridization research on genetic technology but
chemical companies, such as Mitsu-
bishi Chemical Industries, Sumitomo
14ochida Pharmaceutical Co., Ltd. Chemical, Mitsubishi Petrochemical
Mochida Pharmaceutical, which is and Kanegafuchi Chemical Industry,
studying the manufacture of inter- have set their targets in fine chemicals,
feron by the fibroblast technology such as pharmaceuticals.
introduced ?rom G.D. Searle & Co. of In view of the situation in the
the United States, is to start a clinical United States and Europe, however,
demonstration of its own this year. Mitsubishi Gas Chemical decided to
In the field of genetic technology, tackle genetic technology for applying
it has developed techniques for pro- it to the chemical industry for the
ducing a;~ immunity diagnosis drug by first time in Japan. The company
the method of hybridization. Since plans to combine the technology with
_
different kinds of cells are hybridized Ci chemistry using natural gas asa raw
to create "new cells" which are culti- material, a field in which the company
vated later, the new method can lower has been consistently engaged.
the cost considerably compared with In concrete terms, the company
the conventional method using rabbits. plans to manipulate genes of microbes
It is said that immunity diagnosis which eat methanol, one of the basic
drugs in the future will be produced materials in C~ chemistry, in order
all by this new method. The company to develop a new chemical process.
plans to start commercial production
in two years. Genetic Technology with its SCP
The company, which is a mediunr Techniques
class phannaceutical maker having
strong foothold in hocmone and pemippon Ink & Chemicals, Inc.
enryme and specializing in drugs for ~e company is at the top of the
clinics and hospitals, needs to step up World in techniques on SCP (single
basic studies and safety tests in such
new fields as genetic technology. It cell protein). Commercial production
started the construction of a research of SCP was not realiaed in Japan due
institute at Gotemba, Shizuoka Pre- to the controversy over the safety of
fecture, in March this year at a total such protein and the sharp spirals
cost of ~2,100 million. in oil prices. But the plants developed
by the company have started the
� 46
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world's first commercial production
in Rumania. Research on Interferon
5tarung operarions at the end of
June last year, they increased the Asahl Chemical Industry Co., Ltd.
monthly production to more than The compatty is active in branching
1,000 tons in July. Although the out into the field of genetic tech-
monthly production capacity is 5,000 nology ts a promoter of the "meeting
tons, it is tuming out 1,200 to 1,300 of companies on bia-technology."
tons of SCP a month because the Regarding fern~entation, the com
supply of the raw material, N-paraffin, pany has techniques accumulated
cannot catch up with producdon. The since it switched to the fem~entation
producdon capacity is to be doubled method in producing chemical season-
to 10,000 tons a month in the future ing through a joint study with its sub-
after the supply system is improved. sidiary, Toyo Jozo.
The company intends to place em- The company has begun research
phasis on technological exports to on and development of interferon by
oil-producing countries where utilizing such techniques. While
husbandry is carried out and SCP introducing techniques on interferon
feedstuff is needed. But the company from the National Cancer Institute of
- is expected to branch out into the the United States, it has dispatched
field of genetic technology by utilizing technicians to four universities in the
techniques on SCP, while continuing United States. It is also constructing
research on the commercial produc- at the Fuji Plant P III level facilities
tion of SCP using methanol as the raw for the experiments on biological
material. containment, thus taking steps for the
commercializadon of genetic tech-
nology.
In the pharmaceutical field, the
company is in tie-up with Toyo Jozo
_ and has made considerable progress
in the development of inosine and
adenosine; anti-cancer drugs, Sunfural
and Sunrabin; and inteimediate for
cephalosphorine antibiotic, "7-ACA."
COPYRIGHT: Diamond Lead Co~, Ltd. 1981
CSO: 4120/291
47
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SCIENCE AND TECHNOLOGY
SHIPPING INDUSTRY REPORTED ON COURSE TO RECOVERY
Tokyo BUSINESS JAPAN in English Vol 26, No 7 Jul 81 pp 59-61
~Text~
_ _ - -
I T hasn't been the best of times for Moreover, although government
the Japanese shippu~g industry. A budgetary appropriations set aside for
prolonged recession brought a cutback f`iscal 1981 are just enough to build
in the number of inerchant ships, and 1,24U,000 gross tons of ships, there
the soaring costs of manpower struck a has been an unofficial report of bids to
blow to its international competitive build more than 2,500,000 gross tons
, ability. But these troubled waters seem of ships. The problem for the govern-
to be behind it now, thanks to the ment at the present time is raising
bullish tramp market sustained for the additional funds.
last two years, brisk exports, and These results speak for themselves
depreciation of the yen. of the effectiveness of procuring long-
The industry can also be grateful term, low-interest government loans,
for the results produced by a three- including interest subsidies, for the
year emergency ocean-going ship construction of cost-saving ships to be
buildup program which was put into manned by a small crew in sustaining
effect by the government in fiscal international competitiveness. The
1979. The soaring cost of manning merits of this program will serve as
ships, for one, is now being rectified valuable guidelines when debate begins
through concerted labor-management on what course to follow after fiscal
efforts to modernize the recruiting 1982 when the emergency shipbuild-
system, with encouraging signs of im- ing program comes to completion.
provement appearing on the horizon. On February 19 of this year, the
The various problems currently government convened the Shipping
faced by the Japanese shipping in- Policy Panel of the Shipping and Ship-
dustry were met head on with ways to building Rationalization Council to
resolve them in the vigorous recom- seek its advice and recommendations
- mendations submitted in March last on ocean-going ships after fiscal 1982.
year by the Shipping and Shipbuilding Policy measures are now being dis-
Rationalization Council, an advisory cussed by this task force and an
organ to the Transport Ministry. The interim report of policy proposals and
three-year emergency ocean-going ship recommendations is scheduled to be
buildup program, which has been re- made around the middle of July.
vised in line with the recommenda- Already discussions - have been
tions of the council, was rated very conducted on the significance of the
highly for having produced far better shipping industry in Japan, as well as
results than anticipated. its standing in international competi-
The original government-financed tion, and on the issue of flags of
plan called for the construction of convenience. Ongoing studies include
three million gross tons of ocean-going research of shipping industry promo-
ships over three years. However, in the tion measures and tax measures of
first two years alone in fiscal 1979 and various countries as well as the policy
fiscal 1980, as many as 63 stups tor a objectives behind these measures.
total of 3,470,000 gross tons were In late June, some members of the
- constructed. Shipping Policy Panel will join a Japan
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Maritime Research Institute mission to question of how to recruit Japanesc
Europe to observe various shipping seamen to operate these sliips. As a
concerns there. Great expectations matter of reality, the number of those
have been placed on the results of this who wish to become seamen, a job
observation trip and of the task force that looks increasingly demanding and
work as a whole as being invaluable in unglamorous in comparison with work
shaping future shipping industry on land, is declining year after year
policy. not only in Japan but also the world.
Needless to say, Japan is one of the Although bright spots have finally
major countries which depend on ex- begun to appcar on the horizon of the
ports for survival. Of the approximate- Japanese shipping industry, the en-
ly 3,600 million tons of maritime vironment surrounding the industry is
cargo movement in the world, still gloomy. The political and econo-
Japanese cargo movement accounts for mic situations throughout the world
about 700 million tons. We need not are still unpredictabte, what with the
stress anew the importance of the role Middle East in turmoil, the power
_ being played by the Japanese shipping struggle in Poland, recession of the
ir,dustry in ensuring stable transporta- U.S. and EC economies, the oil prob-
tion of trade goods. As regards inter- lem, and the deterioration vi tlie inter-
national payments, Japan suffered a national payments position of non-oil
deficit of about US$10.8 billion on a developi;ig countries.
fiscal 1980 basis in its current account To make the situation worse, the
balance, a figure approaching its in- tramp market which has made a brisk
visible trade deficit which was about performance for two years is showing
US$11.3 billion. signs of weakening. The international
In view of this, it is no exaggeration situation that surrounds the Japanese
to say that the invisible trade balance shipping industry, marked by the ag-
holds tlie key to the improvement of gravating North-South confrontation
Japan's internationa! payments posi- in shi in , and the intensification of
tion. In particular, it must be noted pp g
that shipping-related international pay- activities of non-Conference ships
ments account for about one-third of among the East European stupping
invisible trade payments. On the 1980 ir?dustries and of some major
fiscal year basis, Japan posted a deficit ~erican shipping companies, is ex-
of about US$3.3 billion in inter- pected to become increasingly severe.
However, it is true, at the same
national payments related to shipping. time, that the Japanese shipping in-
In order to reduce shipping�related dustry is on the way back to inter-
deficit, and so in turn improve the national competitiveness, thanks to
invisible trade balance, reduction in the three-year emergency ocean-going
ciiarters of foreign siups as well as the ship bufldup program. To assure a
curtailment of fuel oil consumption complete recovery will take some
would be very effective steps to take. specific hardline measures, namely
In order to reduce charters and fuel oil labor-management self-help efforts and
consumption, the most direct move appropriate government support in the
would be to construct highly efficient form of policy measure. With this in
cost-saving ships fitted with energy- ~d, we place expectations on fruit-
saving engines that would sail under ful policy proposals and recommenda-
the Japanese flag. tions to come forth from the task
It is obvious that recovery of int~r- force of the Shipping and Shipbuilding
national competitiveness of Japanese Rationalization Council.
ships is primary to ensuring a healthy It is essential that the government
future for the Japanese shipping in- not lose track of the importance of the
dustry. Particularly important in this shipping industry under pressure to
connection is tlie procurement of rehabilitate its deficit-ridden national
highly competent Japanese seamen. finance. Rather, it needs to formulate
Now that the public has come to and enact just and appropriate policy
recognize the need for Japan to measures that can enhance the inter-
possess a minimum number of ships to national competitive power of the
ensure economic security as well as to Japanese shipping industry, and thus
cope with an emergency, it is more a keep Japan a leader in trade. O
COPYRIGHT: 1981 the Nihon Kogyo Shimbun
CSO: 4120/297
- 49
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SCIENCE AND TECHNOLOGY
PROSPECTS OF SEMICONDUCTOR, INTEGRATED QRCUTT INDUSTRY EXAMINED
Tokyo BUSINESS JAPAN in English Vol 26, No 7 Jul 81 pp 32-34
~Article by Gene Gregory~
~Text~
D URING the seventies, the Japa- circuits (ICs), with output of discrete
nese semiconductor industry semiconductors (mainly transistors
emerged as a second pole of tech- and diodes) remaining stagnant or de-
nological innovation in a global clining.
microelectronics revolution, winning During the four years from 1975
- worldwide recognition for its produc- to 1979, the annual growth of [C
tive prowess. In the coming decade, production averaged almost 34%, ex-
microchip manufacture promises to ceeding the total production of
bring major changes to both the discreet semiconductors for the fust
Japanese and international industrial time in 1978. In August 1979, also
structures. for the first time, Japan becazne a net
Propelled by rapid changes in exporter of ICs, marking a signi~cant
micro circuit technology, the elec- strengthening of the Japanese posi-
tronics industry will be the most tion in world markets.
dynamic sector of the Japanese eco- Prospects are good that, despite a
nomy during the next two decades. capid growth in the home market, the
In 1979, the gross product of the Japanese industry will remain a net
electronics industry in Japan was less exporter in the future, substantially
than half that of the steel industry increasing its share in world mazket-
and only about 40% of that of the places. According to estimates made
automotive sector. By 1990, total by Nomura Securities, which look to
output of electronic products is ex- be quite conservative by past per-
pected to surpass USS100 million, formances, domestic demand for ICs
not accounting for inflation, exceed- will expand more than 2.5-fold dur-
- ing steel output by a considerable ing the first half of the 1980s. As a
margin. Only the automobile industry result of the combined growth of
is likely to remain larger in terms of domestic demand and exports, ac-
total output, and it will itself have cording to the 1980 report on the
become a major consumer and pro- industry by BA Asia, a Bank of
ducer of electronic devices. America consulting firm, Japanese
Assuming that the output of elec- manufacturers could account for one-
tronic products grows at an average third of the US$20 billion world
10% per annum throughout the semiconductor market by 1985.
1980s, industry planners expect semi- Such a substantial improvement
conductor production to grow at an over the present 26% share of world
appreciably higher 16% a year. Most markets does not reflect simply, or
of this growth u~ill be in integrated mainly an andcipated increase in
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Japanese exports of ICs. Rather, it is public policies and corporate strate-
the expected result of a more rapid gies to encourage and direct the pro-
and pervasive diffusion of semi- cess of chan e.
conductor technolo throu out the g
SY Bh Mechatronics in Japan has sped
broad spectrum of industrial pro- the process of semiconductor applica-
duction in Japan than will take place tions because of several systematic
in North America or Western Europe. and ongoing changes:
Applications of ICs by Japanese - total replacement of conven-
industry have been at once more tional mechanical devices, wher-
varied and at a remarkably faster ever possible (calculators,
pace than in other advanced countries watches);
throughout the 1970s. While the - partial substitution of inecha-
computer industry has provided the nical functions by electronic
single largest market for advanced devices (sewing machines,
LSIs (large-scale integrated circuits), cameras, copiers, automobiles);
and will continue to do so in the and
future, it accounted for only 25% of - addition of electronic control
the ~364 billion domestic consump- devices to conventional ma-
tion of ICs in 1979. Audio-video chines (numerically controlled
manufacture took an equal share of machine tools, robots, elec-
available ICs, assuring Japanese tronic cont;ols for engines).
makers a leading position in world Phenomenal advances in Japan in
markets for home entertainment application of semiconductor tzch-
- equipment. Likewise, cameras, nology in calculators, watches,
watches and calculators have evolved cameras, NC machine tools and
through successive product design robots are manifestations of the in-
generations in pace with advances in tensive and extensive development of
semiconductor technology. And the mechatronization beyoad the stage of
rate of application has been just as serendipity and spasmodic impulse
rapid in telecommunications, office into a special highly refined sys-
machines, automobiles, home ap- tematic production technology.
pliances, toys and a bewildering mis- The result, in turn, is to create a
cellany of products. high-growth market for ICs. But the
Perhaps most outstanding of all, dynamics of the process dces not
- however, has been the rate with stop here. The substitution of elec-
which semiconductors have been ap- tronic for mechanical products also
plied in machi~ery in Japan. The has stimulated incremental demand
expanding park of industrial robots for the whole product.
' which many Japanese factories use The electronic watch well il-
around-theclock exemptifies the lustrates this dynamic interaction of
special zeal with which semiconductor semiconductor technology, market
technology has been adopted in Japa:� and production. From 1964 to 1972,
nese industry. unit shipments of watches in Japan
This zeal is not manifested hap- increased at an average annual rate of
hazardly, however. As systematic as just under 2%. After the introduction
semiconductor technology itself, the of the electronic watch in 1972, how-
appiication of successive generations ever, the growth rate has been over
of ICs has been systematized into a 7% a year. As a result, [C makers and
separate technology: mechatronics. watch manufacturers have both
As the name suggests, mecha� benefited from this trend, not only
tronics is simpiy the combination of from increased volume, but from
mechanics and electronics, but done higher value added per unit of pro-
in such a way as to assure in each duction.
product the optimal combination of Semiconductor manufacturers have
the two technologies. This practice is a special advantage, however. As
not new, of course. But the develop- systematic mechatronization increases
ment of the microcomputer and domestic consumption of ICs, the re-
other semiconductor devices, all avail- sultant higher volume production
able at relatively low prices, has ac- hastens learning curve advantages of
celerated the process, giving rise to the latest product generation, making
51
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it possible to reduce production costs Japan and other Asian countries
accordingly and improve their posi- where the technology was more
tion in the highly competitive world readily, ef~ciently and e~onomically
markets. applied. Now, in the second stage of
This process is expedited, not so the microelectronics revolution, the
- much by massive government sub- lead in development of basic tech-
sidies or special tax advantages, but nology itself is shifting to the point
by an efficient financial system which of application and production, where
makes possible the high and flexible organizational, financial, human and
rates of investment which the highly informational resources are optimally
capital- and technology-intensive available in the necessary combina-
semiconductor industry requires. tions for continuing innovation.
Japanese manufacturers in such high- The 19~Os have begun with the
growth, high-value-added sectors have significant lead taken by Japanese
access to capital on the sustained and manufacturers in the 16K RAM
rational basis which advanced and (random access memory) market-
rapidly changing technologies require, place. Fujitsu's lead in the fielding of
Equally important, the vertical and 64K RAMs, ushering in the VLSI era,
horizontal integration of large-sized, was even more remarkable, scoring a
highly diversified Japanese manufac- technological advantage for Japan in
turers of electrical and electronic the crucial big volume memory seg-
products have a special advantage in ment of the market. And, as a recent
the allocation and use of resources study of Daiwa Securities notes, Nip-
for rapid application of the rapidly pon Telephone & Telegraph, Fujitsu
changing semiconductor technology. and idEC succeeded collectively in
This explains in part why semi- developing the worid's first 128K
conductors were first appl:ed to con- RpM, which has since been followed
sumer electronics and calculators in with the announcement by Japanese
Japan, rather than in the U.S. where manufacturers of 256K bit VLSI
the basic technology was originally chips.
developed. American IC manufac- In VLSI development, Japan has
turers began as semiconductor manu- clearly taken the lead. And once
facturers and merchandisers and con- more, Japanese industry is best equip-
centrated on a broad range of devices ped to use the new technology to the
to cover as large market segment as greatest advantage in new product
possible. development.
This structurallyinduced efficiency But those spectacular changes in
in the application of new semi- the industry, although momentous,
conductor technology by integrated are by no means the whole story. As
Japanese manufacturers has been BA. Asia's 1980 report points out,
both the cause and the effect of a Japanese applications for IC patents
remarkably higher degree of special- have been growing steadily in recent
ization in semiconductor production years, while foreign patent applica-
than is found in leading American tions have stagnated. The dimensions
semiconductor makers. Specialization of the trend are important: total
in Japan, to meet in-house product semiconductor patent applications in
requirements, tends to assure the Japan increased from 4,406 in 1974
greater economies of scale and learn- to 6,397 in 1977, while foreign ap-
ing so critical to semiconductor plications dropped from 10% to 7%
manufacture. of the total.
The next stage in the macro- Most new technologies developed
dynamics of this industry was entire- in Japan have been in assembly pro-
ly predictable. It is an immutable law cesses and manufacturing rather than
of techno-economic behavior that inventions of new devices. As a re-
basic technology tlows to the point sult, however, Japanese mass produc-
of most efficient application and pro- tion and automation technology are
duction. During the first 30 years of generally agreed to be the highest in
the microelectronics revolution, the the world, assuring better production
basic technology was developed in yields and greater product reliability.
the United States and transferred to
52
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Suny's recent perfection ot a � Kokusai Electric is a leading
method to grow better silicon crystals manufacturer of single-crystal silicon
un~ier the influence of a magnetic production apparatus, diffusion fur-
field, increasing IC production yields naces, ion implantation apparatus and
by up to 20%, is a case in point. other equipment used in IC produc-
Reduction of imperfections in silicon tion.
wafers becomes especially critical in � The chief achievements of the
the production of VISI chips, Sony government-sponsored VISI Tech-
claims. nology Development Union, which
Even less visible than such break- has already applied for over 1,000
throughs b~ major manufacturers has patents, are the developments of re-
been the emergence of a number of volutionary electron beam exposure
smaller scale leaders in semiconductor equipment and high-speed electron
materials and processing equipment beam drawing equipment which will
technology. enable the Japanese semiconductor
� Shin-Etsu Semiconducto* has industry to produce mega-glass VLSIs.
grown to become one of the world's As demand for ICs is expected to
largest single�crystal silicon makers, increase at approximately 22% an-
with production facilities in Singa- nually through 1985, the outlook for
pore and the U.S. the production materials and ap-
� Kyoto Ceramic is the largest paratus sector is as bright if not
maker of ceramic packages for ICs brighter than for the semiconductor
and LS[s, accounting for 70�Io - 80% industry as a whole. llemand i"or
- of the world market. production apparatus will be sup-
� Dai Nippon Printing, Toppan ported not only by growth of the
Printing, Sumitomo Metal Mining, industry, but also in large part by an
Sumitomo Special Metals; Tamagawa unusually fast replacement cycle
Metal & Machinery, and Mitsui Mfg, which accelerates with ever more fre-
have developed technological strength quent innovations.
in the production of IC lead frames At the same time, with production
of highly efficient conductors such as going international, as the industry
feno�nickel, cobalt alloy, and silver- establishes plants in major markets of
stripped phosphorous bronze. North America and Europe in re-
~ Dai Nippon and Toppan are sponse to protectionist pressures, the
also leaders in the production of demand for equipment and materials
~ photo masks, glass plates with circuit will increase. Although this demand
designs printed on them for transfer- will be met in many instances by
ring the design onto silicon wafers. foreign suppliers, Japanese equipment
� Canon is the world's second and materials manufacturers will
largest mask-aligning equipment undoubtedly be important bene-
manufacturer. ficiaries of the move to overseas pro-
duction. 0
COPYRIGHT: 1981 the Nihon Kogyo Shimbun
CSO: 4120/297
53
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SCIENCE AND TECHNOLOGY
PAPER-THIN LITHIUM BATTERY DEVELOPED
Tokyo DIAMGVD'S INDUSTRIA, in English Vol II No 7, Jul 81 p 18
~Text~ _
Matsushita Battery Industrial Co. watches, liquid crystal display calcu-
Ltd., a battery manufacturing sub� lators and professional comunica-
sidiary of Matsushita El:~ctric tions equipment.
lndustrial Co., Ltd., developed the The company's conventional
world's first paper-thin sheet-type paper-thin batteries which use same
lithium battery measuring 1.3 mm materials as manganese dry batteries
thick, yet featuring a high energy (manganese dioxide and zinc) are
density. ~ suited for applications requiring a
- The company has succeeded in loW electric current. In contrast, the
combining both "paper-thin battery new paper-thin lithium battery has
technology" first developed by an energy density high enough to
Matsushita Battery in 1970 using a drive electric motors.
manganese dry battery configuration The new battery cames in three
and "lithium battery technology" sizes measuring 20 mm x 70 mm and
which yields one of the highest ~,3 mm thick, 43 mm x 70 mm and
energy densities of any battery. 1.3 mm thick, and 75 mm x 94 mm
The new paper-thin lithium and 1.3 mm thick. The smallest
battery uses lithium in its negative version is as small as a piece of
electrode and carbon monofluoride chewing gum but has an increased
_ as the positive electrode. Nominal capacity four times higher than
voltage is 3V, double the voltage of conventional manganese paper-thin
ordinary batteries. Energy density is batteries. The second version has
as much as 10 times higher than electric capacity of 35 mAh about as
manganese dry batteries. In addition, high as that of an AAA size battery
the temperature characteristics pro- (S~er than the AA penlight
vide high performance even at low battery). The largest version, about
temperatures. The battery is, there� half the size of a post card, produces
fore, well suited for electronic 1,500 mAh which is equivalent to
- that of two AA penlight batteries.
COPYRIGHT: Diamond Lead Co., Ltd. 1981
CSO: 4120/291 END
54
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