JPRS ID: 10319 JAPAN REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000500030028-3
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 90
• Document Creation Date: November 1, 2016
• Sequence Number: 28
• Content Type: REPORTS

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
- FoR oFF~cin~, usH or~~.v
JPRS L/ 10319
11 February 198~
- Ja an Re ort
p p
CFOUO 10/82)
FBIS FOREIGN BROADCAS ` INFORNiATION SERVICE
~OR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
NOTE
JPRS publications contain information primarily from fr,~eign
newspapers, periodicals and books, but also from news agency
transmissions and broadcasts. Materials from foreign-languagP
sources are translated; those from English-langaage sources
are transcribed or reprinted, with the original phrasing and
other characteristics retained.
Headlines, editorial reports, and material enclosed in brackets
[J are supplied by JPRS. Processing indicators such as [TextJ
or [Excerpt] in the fi.rst line of each item, or following the
last line of a brief, indicate how the original informatior. was
processed. Where no processing indicator is given, the infor-
mation was summarized or extracted.
Unfamiliar names rendered phonetically or transliterated are
enclosed in parentheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses were not clear in the
original but have been sLpplied as appropriate in cuntext.
Other unattributed parenthetical notes within the body of an
item originate with the source. Times within items are as
given by source.
The contents of this publication in no way represent the poli-
cies, views or attitudes of the U.S. Government.
COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF
MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATI~JN
OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONLY.
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007102/09: CIA-RDP82-00850R000500030028-3
EOR OFF[CIAL USE ONLY
J!'R5 L/10.31y
11 February 1982
;
I
; JAPAN REPORT
~
(~ouo ~ o/s 2 ~
CONTENTS
' SCIENCE AND TECHNOLCIGY
Lagging Oil Development Viewed
(Tonedachi Masahisa; JAPAN QUARTERLY, Jan-Mar 82) 1
Nation Ponders Computer Indust.ry, Possible War Use
(JAPAN QUARTERLY, Jan-Mar 62) 9
Status of Top Computer, OA Semiconductor Companies Studies
(COMPUTOnIA, Nov 81) 13
- a - [III - ASIA - 111 FOUO]
, FOR OFF't..i.4L USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
FOR OFFICIAL USE ONLY
SCIENCE ANB TECHNOLOGY
LAGGING OZL DEVEIAPMENT VIEWED
Takyo JAPAN QUARTERLY in English Vol 29, No 1~Jan-Mar 82 pp 97-104
[Article by Tonedachi Masahisa]
[Text ~ VER the past more than 30 postwar In the autumn of the same year, therefore, in
O years, Japan has achieved a rate of response to the Research CouIICil's recom-
economic growth that has been the mendations, the Oil Development Public
most spectacular in the world. Growth in Corp. was set up, financed by the govem-
- the so-called "heavy-and-chemical indus- ment, t^ provide financial and technological
tries," such as steel, shipbuilding, automa assistance to overseas oil development pra
biles and chemicals, and in the electronic.~ jects by Japanese companies.
industry has been unparalleled. In another Today, 15 years later, the number of oil
important basic industry, however, Japan has development comganies has reached 70, but
lagged painfully behind other advanced coun- their performance has not met expectations.
tries-petroleum~ and in particular, the up- Oil from fields developed by Japanese com-
stream processes of exploration and develop- panies and imported into Japan accounts
ment. ~ for only 9.8 percent of Japan's total crude
- The history of Japan's oil development is imports. Yt seems impossible to bring tlus
relatively short, the oil industry in Japan figure up to the target of 30 percent by 1985.
having taken shape only a little more than 10 Wh~t has made Japan, a major world
ycars ago. During these 10 years, the Min- industrial power, lag so far behind in its crude
istry of International Trade and Industry has oil exploration and development? At a time
pursued policies for oil developmcnt, both when fears are held about the future of the
domestically and outside the country, prem- world's oil supply~ it is Japan's intemational
ised on tho relative weakness of the Japanese responsibility to take part in overseas oil
upstream sector due to the overwhelming development to help case that situation.
cmphasis given to the downstroam operations What should Ja.pan be doing? This article
of rcfining and sa(cs. attempts to review the present situation and
In 196'1, the Comprehcnsive Energy R~- thc problems of Japan's efforts in this vital
scnrcli Council, an udvisory organ to the area.
Ministcr of Intcrnutional Trade and Industry~ pne~�roject-One-Com~sny Fdrmula
with an eye ta overseas oil developmcnt~
recommended a targct of 30 percent as the The oil industry consists largely of the
proportion oi domcstic oil demand which upstream activities of exploration and devel-
was to be met by crudc oi~ explored ar,d aP~~,~Qt and the downstream industries of
dcveloped by Japanese companies. Attain- transport, refining and sales. The interna-
ment of a stable supply of this dimension was tional oil majors and most of the world's
~ considered to be both desirable and feasible. ~~ading oil companics engage in an integrated
1
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
FOR OFFICIAi, USF ONLY
~~~~cr;~tiun which inclu~lcs buth upstrcam and apment by themselvcs nor to cope with thc
~7;,wnstrc:am activitics, from exploratio~: and inereasingly severe competition with foreiga
development to refining and sales. Japanese companies.
uil companies, however, with only a few Ia Westem countries, the international oil
exceptions, engage mostly in downstream and majors utilize their vyozidwide networks-
not upstream operations. Generally speak- funds, tect~nology, iitformation, bargaining
ing, downstream operations require consider- power and ezpertise-to promote develop-
able capital and a high-risk investmcnt, men~ State policy corpc,ations such as
Most oil companies elsewhere, therefore~ try ENI of Italy, CFP of Francx~ DEMINEX of
to balance their operations by channeling Wesi Ciermany and BP of Britain are also
earnings from the downstream to the up- giving full play to their capabilities.
stream sector. It is only in this way that In Japan~ the Oil Development Public
risky operations like the oil industry can Corp, has filled some of the gap but r.ot suf-
survive. ficiently. Most oil companiss~ centering on
However, because of a separation of these refining and sal~s~ are weak in their manage-
operations, Japancse oil development com- ment setup because of excessive comgetition,
- panics have no refining or sales facilities. and it is only recently that they have moved
'fhis results in some basic drawbacks. The into the area of exploration and develog-
greatest of these is that bec:iuse individual ment.
Japancse companics cannot raise funds for The reason why the Japanese oil industry ~
oil dcvelopment overseas themselves, they has developed in this way stcros from th~
dcpend on industry at large to set up separate fact that upstream and downstream opera-
companies for each development project, in tions were separated as national policy dunng
what is called a"one-project-one-company" Lhe war~ and that neither government nor
formula. industry was very concerned about explora-
This formula, where risk is confined to a tion or development: crude oil was availab~~
specific project, has the following problems: at the low price of about S2 per barrel for
First, it hampers the long-term develop- many years until the first oil crisis of 1973.
ment of companies capable of raising such The two oil crises of the 1970s brought
funds in the future. home to Japan the instability of its oil supply
Second, because the perspective is limited due to its lack of upstream facilities. The
to immediate projects, it hampers the growth medium-term outlook for the 1980s cannot be
of companies capable of conducting et~ective called reassuring either. Japan should there-
investment on a worldwide basis. , fore become more active in the field of oil
Third, scarce engineers and technicians are development~ both from the point of view of
mobilized for each specific project, causing a its own national interests and also from that
shortage in their numh~ers. of fulfilling its intr_~ational responsibilities.
Fourth, if the company is successful in
striking oil, it can survive, but if not, it eithec Only 1 I'erceat of T~otal Japane~e
has to dissolve or at least become dormant~ as Demand
a result of which any expcricnce gained from
a particular project is unablc to be put to use Japan is the world's second-largest ccnsum-
in othcr projects. er of oil after the United States~ accounting
Against this background, eight so-called for approzimately 10 percent of total con-
"integrated companies" have b~en set up, sumption in the West. Over the past year or
compo~ed of major banking groups and so, Japanese demand has been declining
trading firms, charged with playing a central rapidly. Imports of crude oil have dropped
rolc in oil devclopmcnt projccts. However. f'rom 270 million kiloliters in 19y9 to about
although they have the ncccssary financial 250 million kiloliters in 1980. Yet in 1980,
backing, tl~ese companics do not have enough the nation's real economic growth reached a
cxpcricnce or cnginecrs to promote oil devel- healthy 5 percxat. There 8re at least three
2
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
FOR OFFICIAL USE ONLY
iCUSOna for thla dccl(no. impurt oil of their own production into
First, soaring oil prices have . prompted Japan-Arabian Oil, North Sumatra Oil
energy-saving e~'orts in both the industrial Development Corp.~ Japan Low Sulfur Oil~
and non-industrial sectors. Indonesian Petroleum, Abu Dhabi Oil, Japan
Second, tue use of altemativic energy has Oil Development, C. Itoh Energy Develop-
been accelerated: The switch to coal has been ment, United Pet:oleum Development, Zair
- particularly marked in such fuel-consuming Petroleum, Japan Iraq Oil Development,
= industries as steel, cement, paper and pulp. Nato Oil, Indonesia Nippon Oil Corp.,
Kerosene oil is also being replaced by service Mitsubislu Oil Development, Sumitomo
gas or electricity. Petroleum Development and Japan Peru
Third, while the overall economic growth Oil. Some ~thers-Mitsui O~ Development,
rate has risen steadily, the oil-consuming Fuyo Oil Development and Egyptian Oil
- industries such as steel, chemicals and cement Development-do not directly import oil of
have cut down on production sharply because their own production into Japan.
of excessive inventories. Of these 15 companies, only four im-
~ The first and second reasons can be expected ported more than 10 million kiloliters
to havc a continued and gtowing eRec~ apiecx, 1961 to 1980-Arabian Oil (250
'Taking this into acxount~ in May 1981 MITI million), Japan~0i1 Development~ Indonesian
workcd out an oil supply plan for fiscal Oil and Japan Low Sulfur Oil. The com-
1981-85, which represented a sharp down- bined total of the 15 companies was 364
_ ward modification of the previous oil iniport million kiloliters, or only 9.8 percent of
plan. According to this revised _~lan, approved Japan's crude imports (3.7 billion kiloliters)
by the Oil Council, Japan's total imports of during these years.
crude oil in 1985 are set at 331 million kilo- Japan's domestic production of crude oil
litera or 5.71 million barrels per day (1 barrel has continued to decrease from a 1970 peak
equals 159 liters), an amount much smaller of 900,000 kiloliters to 480,000 kiloliters in
than the 6.3 million barrel target declared at ]980, or about 0.2 percent of the total imports
the Tokyo Summit in June 1979. of crude oil for 1980. In other words,
Nevertheless, there is little sign of Japan's Japan's oil production both in and ou~wide
oil situation improving in the immediate thc country amounts to only about 10 percent
future because the crude oil developed by of total demand.
Japanese companies ovcrseas or domcstically Between 1958 and 1979~ the 15 Japanese
accounts for such a small portion of the total companies spent a total of ~1.2 trillion
Japanese demand. (�~660 bitlion for exgloration and "f538
Japan's first oil development overseas was billion for development), a much larger
undertaken by Arabian Oil Co. Ltd. in 1960, amount than was invested in any other indus-
in the neutral areas of Saudi Arabia and try. By contrast~ the eight international
Kuwait and in thc sea o~' Khafji. In 1961 ~ a majors spent '~4 triUion Cor such purposes
total of 1.45 million tons of crude oil was in 1979 alone~ or more than three times
shipped to Japan from these fields. This was tht Japanese investment over sbout 20 ycars.
~ an exceptionally successful example in the According to an informal estimate, Japan's
highly risky industry of oil dcvelopment. investment in the upstream oil industry
Tt~c first oil wcll produccd 1,000 kilolitcrs of amounts to only 1 percent of the world
first-gradc oil u day, and all thc succecding total. Secn from the point of view that
weils were similarly successful. Encou�raged Japan consumcs 10 percent of the oil in the
by the success of the Khafji oil ficlds, more West~ these figures are clearly small. Un-
and more Japanese companies launr,hed oil doubtedly Japan's interest in oil development
development projects overseas. is much lower than that of oth~r countries
In 1981, these companies including tho whicl-. center on the international majors.
eight "integrated companies" number about
70. Of' thcse, however, only 15 actually Why Is .Tapan Behind?
3
FOR OFFIC[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030028-3
FOR OFFICIAL USE ONLY
There are three main reasons why Japan set up in September 1941, just before the
lags behind other countries in oil develop- outbreak of the Pacific War, in line with the
ment. nationalpolicy ofdevelopmentandpromotion
First, because of the small scale of domestic of oil resoum,es. The company played its role
pro~uction, the government and industry of securing oil resources during the war, but
have not been inclined to invest in oil develop- its establishment marked the separatioa of
ment since prewar days. Another energy upst~~eam from downstream oprations be-
source--coal-attractcd attention early oa cg'*se ~t mtegrated only the mining operations
and Japan's major financial groups such as of ot%�~r oil companies which previously had
Mitsui, Mitsubishi and Sumitomo all bcen engaged in more comprehensive opera-
made considerable investmen! in this field. tions, ranging from eaploration and develop-
Howcver, these companies had little interest ment to sales. This was the beginning of the
in oil because of the limited possibilities for unique form of operation of Japanese oil
production and the considerable funds neces- companies. '
sary for eaploration and developmcnt. Oil After Teikoku reinstated itself as a private
is probably the only industry that was over- company in 1950, there were plans to set up
looked by those major financia: .?~oups whieh "Japanese oil majors" by combining up-
invested in almost all other industries in some stream with downstream activities. How-
way or another. The onc exception was tho ever, these plans were stillbom because the
Japanese Navy which~ heavily influenad by oil companies, which, postwar, had achieved
Britain, was iooking toward oil as their fuel rapid growth in the downstream sector on the
in th~ late Meiji Period and consequendy strength of foreign capital, were all reluctant
' placed emphasis on oil development in to take the risk of operating in the upstream
Taiwan and areas further south. sector as well which required a vast amount
Second, the Teikoku Oil Co. Ltd., 50 of investment. The continued separation
perant capitalized by th~ government, was of upstmam from downstres~~ delayed
Worldwide Projects of Japanese Companies snd Their Aff:liates
n,. Es,~otln P.o-d.,n r~.+ atn. a
DerduOrt~ent Co. Ltd DMbDR~t CaR
Chrdrl 01 -Nor1h PKMC Ol D~rroORwd C0.1.fd
h~6ie 01 Co. L!d OndoDRrit ~krp~
sre.ti a or~bpm.r Arctle P~6oYtm Cav�.uon
Gbao~r~Ua~ Cai, l1d
a s.+a catsd
s~a. a s.d c~.ua,
c~a ud
O~~bo~rtrnt Co. .JAPEX i~fa~ LEd Fyro P~IroMun
Mad~ NDOm d ~o ~rt CorDa~ftal
Cooo~~tia? Co.l.Ed
~ trPD(I P+I~wri l1d
WPEk N~Nr Ltd
rdae~L P~troletrn Ltd
_ -r� ~ C Iloh Emra Dw~loannt C0. Ltd
~ ECO tirikn Co, ltd
omo ~o4un aiPF7l BhAii LEd
NPDf M~M1 Ltd
PNfi Pdro~am Co. Ltd
Z~Y� a ?bn JM P~trol~m CorDOntldl
- PNralam Co, Lld. Co. Ltd. tfi~W Qi FxDla~tlm C0. Ltd p~ n F.~lohtkn L~d
M~ts~EWi Pdrolaun Abu Ofrd 04 Co. Ltd�
Dev~loDn+nl Co. :1d Jton Oil Dw~iov~~mt Co. L!d ,Ipr. Low $Jh? Oi C0. ltd
Wed Gaba~ Ql Co, Ltd Ql Co, Ltd
Source: Petroleum Producers Association of Japan
~
FOR OFFICIA?L USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030028-3
~OR OFFICIAL USE ONLY
)n~~cin"s u~l~~ttn~c intu c~{~I?~ratl.~u au.t ~IO~'CI- QI0111 Al!?I l~UbUJlllb' dttl ~ICI dt UU 111~1Id ltlAll ~V
opment. ~ percent for overseas operations and no L~ore
- Third. the successive dcvelopment of than 80 percent for operations in the seas
large oil fields after the war, mostly in the near Japan. In~estment is required to be
Middle East, caused a glut of crude oil made through the acquisition of equity, and
worldwidt, stabilizing its price at about ~2 per financing terms are set at an annual interest
banel for ~man~ years. As a result, the oil ratc of morz than 6.75 percent for a period
industry '.lad little in.terest in the highly of no more than 18 years. Investment and
risky venture of oil devalopa~ent; tlic rate of fin~ncing as cf the end of 1980 amounted
successful exploration was only 2 or 3 per- to '~500.6 billion ('~232 billion for invest-
cent. ment and'i~268.6 billion for financing; ~453.9
Japan's oil development overseas was bcgun billion for overseas operations and ~26.7
by Arabian Oil in 1960, but most people billion for those in Japan's surrounding seas).
who joined this project, including its president So far 16 companies have succeeded in the
Yamashita Tarb, were laymen in tha oil exploration and development of oil and either
businoss and ironically the industry-at-large are already producing or are in the process
~;a~d littlt attention to the project. In of pnparing to produce oil with the assistance
retrospect~ the success of Arabian Oil at of investment or financing fram the corpora-
that time was the last cl~ance for Japan to tion. Siz other companies, also with the
- vest its interests in thc Middle East. corporation's fiaancial support, bave dis-
covered crude oil or gas and are studying the
feasibility of production~ and 31 other com-
Jepan'� Efforfs at Oil Development panies are in the process of exploration with
the corporation's backing.
Against such a background, the Japan Na- In December 19~5, the Oil Resources
tional Oil Corp., wholly subsidiud by the Development Co, was set up as a state
government, began investment in the expiora- company, but was disbanded in 1967 when
tion and development of oil around 1965, the Oil Development Corp, was established;
aiming to establish oil developmcnt com- its bvsiness was ther~after taken ovar by the
panies overscas. In the private secto:, Oil business department of the corporation. In
Resources Development and Teikoku Oil 1970, the company was reinstated as the
led others in the research and developwent Oil Resources Development Co.
of exploration techniques, the fostering of The company's predecessor had launched
oil engineers and indirect investment in over- ocean exploration in 1960~ as the first Jap-
seas oil development companies. anese company to do so, and an oil field was
In Octobcr 1967, the Oil Development discovered in th~ Japan Sea off Akita in
Corp. was se: up, based on the suggestion northern Japan. In 1971 and later, the
of thc Comprehensive Energy Council, an company discovered Japan's first large-
advisory organ to MITI. Then, in line with scale oil and gas fields in the sea of~' Aga,
the increasing need tor stockpiling of oil, Niigata Prefecture. This exploration was
thc ODC was renamcd thc Japan National conducted jointly with Idemitsu Oil Develop-
Oil Corp. and thc lcgislation reluting to ment, through Japan Sea Oil Resources
its cstablishmcnt rcviscd in Junc 1978. Tlic Development. Production commenced in
main busincss of thc corporation is set out 1976.
ns follows: investment and provision of In September 1941, Teikoku Oil Co.
funds for oil exploration overseas and in the Ltd. was established with SO percent govern-
seas near Japan, loaning of machines and ment capital. Prewar Teikoku Oil was
equipment, techaical guidance~ geological an entircly upstream company and incor-
surveys, the siockpiling of oil and finar~ porated the mining operations of a number
ing. of oil companies. In 1950, it began opera-
The rates of the corporation's ir.vest- tion as a private company. Its ocean
5
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
FUR OFFI('IAL USE ONLY
mining arca extended over an area of No. 2 in October of the same year. China
a~0,000 square kilometers, �or 40 times the also pins great hope on this field where full-
lan~ mining area, from the vicinity of the scale production is scheduled to start in two
Japane:e archipelago to the East China Sea. to three years.
In 1973, fhe cor+pany discovsred a gas Recendy it was decided that the production
field in the s~a near tb~; Japanese islands on of oi7 and natural gas on the continental shelf
the Pacific continent:~ shelf, and as the result off Sakhalin, developed jointly by Japan
of a joint study with Exxon for commercial and the Soviet Union, will begin in 1988.
production, it was decided in May 1981 According to the arinounament of the
to develop the field. The excavation of gas Sakhalin Oil Development Cooperatioa Co.
wells is scheduled to begin in 1983. Ltd. in July 1981, the two countries agreed:
(1) to begin full-scale production of oil and
liquefied natural gas (LNG) in 1988, (2) to
Recent Exampl es of Succeu decide on development and production pro-
grams by the sutumn of 1982, and (3) to ~
Even though somewhat bclatr.d, Japan's ~mplete an LNG plant by the end of 1987.
development of oil has in fact progressed UndGr this agreement, Japan will receive 300
considerably in recent years. During the tons of LNG and SO percent of ~the crudz
25 years from 1955 to 1979~ test driping wclls oil produced for 20 years.
for oil and nutural gas in inland Japan num- In May 1981~ the New Japaa Oil Develop-
bered 1�,186, of which 296 proved successful. ment Co. Ltd., an affiliate of Idemitsu
A total of 45 oil and gas wells were discover- Kosan, announced that it had hit a 1,500
ed. Investment for exploration amounted bbl/day (240 kiloliters) oil deposit in its North
to �t~128 billion and that for development No. 3 wel! off Aga, 15 kilometers off Niigata,
'1~121.5 billion. Production of crude oil in oentral Japan. In this well~ 88 meters
reached 16.2 million kiloliters and that of under water~ the excavation ship struck an
gas 28.7 billion cubic meters. The discov- oil stratum 2~200 meters deep.
- ered deposits equal 53.8 million kiloliters in lapanese companies also take part in som~
terms of crude oil. overseas projects. Idemitsu itosan, Oil
As for ocean eaploration~ 112 wells of oil Resources Development and Mitsubishi
and natural gas were dralled on a trial basis ~rp, take part in oil and natural gas de-
in the seas near Japan, of which 22 were velopment projects which are booming in
successful. Four new oil and gas wells the United States. In 1980 Oil Resoum,es
were also discoversd. Investment for ex- Dcvelopment set up JAPEX U5, made a
ploration amounted to "t'100.9 billion and 50-SQ investment in a development project
that for development't"24.2 billion. Produc- promoted by a Canadian Oil conarn, and
tion of oit rcached 700,000 kiloliters and struck a 1,400 bbl/day (223 kilolitera) oil
. thnt of gas 2.3 billion cubic mcters. The field in Utah. The company is patticipating
discovercd deposits are equal to 15.9 mil- in a trial gas excavatioa in Aiabama and
lion kilofiters in terms of crude oil. plana to join an oil field development on thc
In thc past one or two years there have continental shelf og Louisiana. Mitsubishi
been some promising projects undertaken Corporation. sei up MIC Petroleum in March
by ovcrseas development enterprises, One 1980 and made a 20 percent iBVestment in
is the development of oil in Po Hai Bay. an oif project run by Aminoil in Texas and
In April 1980, the Japan-China Oii Develop- Wyoming. It will conduct trial excavation
ment Corp. and the Changi Oil Develop- in 15 wells~ 4wo of whi~ch are now produ~
_ mcnt Co. Ltd. wcrc established for thcse ing oil.
projects. The two companies discovered Probably because of these sucec.~ssful ex-
promising oil deposits in their trial well No.l amples, the outlook for oil dev-loprc;ent in
in May 1981 and then struck a 2,700 bbl/day 7apan has become brighter. According to a
(430 kilolitcrs) oil .ficld in their tria! well report ma3e by the Petroleum Producers
6
~ FOR OFF[CIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040500034028-3
FOR OFFICIAL USE ONLY
Association of Japan in May 1981~ Japan's which is poorly endowcd with natural ra
own production of crude oil continued to sources and has to conduct exploration and
decrease from an output of 519,000 bbl/day development under severe natural conditions
(509,000 bbl from overseas operations and overseas.
10,000 bbl from domestic ap~rations) in 1978 The Petroleum Producers Association has
- to 435,000 bbl/day in 1980. However~ the calculated that in order for Japan to secure
output since then has been increasing. In 300,000 bbl/day of oil of its owa production
1990 it will reach 799,000 bbl/day (780,000 by 1990, an investment of ~f7.2 trillion
bbl from overseas operations and 19~000 would be required. How to raise such vast
bbl from domestic operations), accounting funds for exploration and development is a
for 14 percent of crude oil imports. This big headache.
will be due to the new projects in Po Hai The second problem is the issue of per-
Bay, Nortih America, Indonesia and the North sonnel, praticulazly the raising of exploration
Pole Sea. The Petroleum Produars Associa- and development engineers. The Oil Engi-
tion expects to increase Japan's own produ~ neering Association has a membership of
tion in 1990 to 1.3 million bbl/day or 20 about 900 oit engineers, but of these only
percent of total imports. For this purpose~ about 100, with more than 10 years ~xpcri~nce
the Association estimaies it will need to spend in exploration and development, are capable
'f2.56 trillion for ezploration and 'f4.7 of negotiating with their counterparts over-
trillion for developmen~ seas. This situation contrasts with the
international majors which retain 400 or
500 oil enginars each.
Problems for Future Plans At present there are about 70 oil devolop-
ment companies in Japan, but only a few of
- Problems with Japan's own production these retain their own engineers. Instead,
of oil in the future arc threcfold. when they come to the stage of trial excava-
The first is funds. As natural conditions tion and production~ they eak help from
worsen in 4he future, dovelopment cost will engineers of the Oil Resources Developmeat
escalate. According to the Petroleum Pra and Teikoku Oil companies. Tlus is because
ducers Association, an oil well 1,000 meters oil companies which engage only in upstream
deep costs about $80,Q00 to dtill; a well 6,004 operations have weak management founda-
meters deep, however, costs $3 million, or tions and are not strong enough to raise
greater than 35 times more. Similar estimates their own engineers. This situation in tum
show that an oil well in the jungle of a devel- ~iscourages c:apable engineers from study-
oping country would cost 4 to 10 times more ing exploration and development techniques.
to dig than one in the United States. Sub- To cope with this problem it is important
marine pipelines in the North Sca cost more io increase the number of courses offered on
than 10 times similar pipelines laid on the this subject ~t universities. As another
- ground. In places of intense cold, the cost means of raising such engineers, the Japan
. rises more than 20 times. For example~ the National Oil Cr~rp. has begun to send prom-
investmcnt necessary for production of ising young Japanese engineers to interna-
1 bbl/d~y of oil is $SGO in Saudi Arabia but tional oil majors for training.
~13,000 to $15,000 in Alaska. These ex- Third~ it will be next to impossible to re-
amples show how thc c�~.~.sts of oil investment inforce the upstream sector if nothing is done
will increase in tlie future. about its present separation from downstream
'I'he National Petrolcum Institute of France activities. As it is, Japan's oil industry,
(IFP) estimates that the world will invest heavily tilted toward downstream opera-
5426 billion in oil between 1977 and 1990. tions, may not deserve the name of oil indus-
_ This means an investment of S30 billion is ~ y�~'
necessary every ycar from now on. This Under these cir~umstanct, it will not be
financial need is a great concern for Japan easy to dissolve the lag in Japan s energy
7
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
FOR OFFICIAL USE ONLY
mci~sures. t'urtunatcly~ thoro havo hcen
cncour~~,ging signa of late. For example,
Idemitsu Petrochemical, an affiliate of
Idemitsu Kosan~ and Nippon Oil Develop-
ment, an affiliate of Nippon Oil, both leading
oil wholesalers operating mostly in the down-
stream sector, have set up wholly owned
subsidiaries operating in the upstream sec~
tor.
Lastly, oil development has much to do
- with int~rnational cooperation. Oil develog-
ment by the advanced countries in prewar ~ ~
years was based on colonialisra. Since the
end of the war~ there have been drastic
changes. Today Japan has friendly rela-
tions with the United Arab Emirates thanks
to the fact that Japan Oil Development and
Abu Dhabi Oil eagage in oil development
projects in the country. Arabian Oil, which
has been operating in thc neutral area b~tweea
Saudi Arabia and Kuwait since 1960, also
contributes to the promotion of good will
an~3 mutual understanding between Japan
and the two countries. Through this type
of oil development~ Japan is expected to
raise the rate of its own oil production and
contribute to the technical improvement and
economic and social development of the oil-
producing countries.
COPYRIGHT: 1982, Asahi Shimbun, Tokyo
CSO: 4120/136
8
~OR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
~O(t OF~iCIAL l~~E ONL~t
SCIENCE AND TI7CHNOLOGY
' NATION PONDERS COMPUTER INDUSTRY, POSSIBLE WAR USE
Tokyo JAPAN QUARTERLY ir. Engli~h Vol 29, No 1,Jan-Mar 82 pp 9-13
[Article: "The Electronics Revolution and the Ban on Export of War Materials"]
[Textl Japan's peace policy is being shaken by a ogy which in large part iuvolve electronics
silicon chip no more than 1 centimeter in and, on the other, without endangering her
area. Japan lost the Seannd World War; alliance with the Western Powers, which is of
something like 3 million people lost their livoa paramount importance, t~ refuse to cooperate
and the war brought to all parts of East Asia with any country in a war or to provide it
a calamity from which it has barely been ablo with materials for war. Japan is suddenly
to recover. After the war~ reflecting sincere placed at the mercy of the specter of "elec-
introspection and via the medium of her new tronics."
constitution, Japan determined to make har- The fact that tht U.S. govemment has
self unconditionally a power for peaa. The formally requested that Japan cooperate in
Diet passed a resolution incorporating ihra the application of electronics to the military
principles conaming the export of weapons field and in the development and production
of war which basicall~~ pleciged Japun never of weapons became public knowledge in June
to engage in such ezport whatever the recipi- 1981. High-ranking off'icials of the Foreign
- ent country. Increasingly, however, modern Ministry and Defense Ministry say that
warfare has taken on the aspect of a war of America has eapressed an interest in racxiving
clcctronics. Electronics technology, cr_nter- technology and parts in the Selda of high
ing on the silicon chip (semi-conductor), has speed processors for computers~ laser� tt~ch-
become the center of attention for its potential nology and facsimile communications.
~ilitary applications. Japan, whose present At first industrial circles tended to doubt
economic successes and social stability have the aceuracy of this report. buchi Atsuyoshi,
worked to the bcnefit of her most friendly vice president (and in charge of semi-
nation, the United States of America, is now conductors) of Nippon Eloctr~c (N.E.C.)~
J ~ being formally requested by that country to Japan's leading produccr of communi-
- supply her with silicon chips for military cations equipment and semi-conductors and
~urposcs. Howcver, thc pcoblem is that prominen: oa a world scale, said, "Japan's
complying with such a request~ even from semi-conductor industry is well-advanced in
America, would not only be in conflict with production and particularly mass-production
thc three principlcs but would also be incom- techniques, but lags far behind the United
patible with the spirit of Japan's constitution. States in basic research and technology.
Thus, a situution has arisen whereby ono Moreover, when it comes to rigorously strict
wondcrs if it is possible, on thc one hand~ to military speciE.,ations for integrated circuits
continue to improvc the cconomic circum- there is no way that Japan can comply. If
stanccs by exporting products and technol- the U.S. government nally. imagines that
9
~ FOR OFFICIAI. USE ONLY
,
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R004500030028-3
FOR OFFICIA~. USE ONGY
mifitary technology exists in Japan that it tronics technology (an area where the West
docsn'c have at homc, then there's some has an unassailable lead over the U.S.S.R.),
mistake somewhere." what shauld he see humming away in front
Tanatsugu Tomio, vice president of of him but a computer of Ford Co. man-
Toshiba Corp. and a previous chairman of ufacture and of a type which had disappeared
the Japan Ordnance Association, expressed from world markets some 20 years ago.
a similar opinion: "If we were to spend Kobayashi says he was S~lled with sorrow that
~ enough time and money to that end, Japan such splendid soldiers had to depend on out-
probably could produce conventional weap- of-date equipment in a country which gives
onry, but even so not without licensed tech- home to I.B.M. and at a time when Fujitsu
nology from the States. For instance, Japan itself had computers with 10 million times
is far behind in military aircraft." the speed and memory.
However, when one talks with pcople in During 1980, N.E.C. supplied 291 items of
industrial circles, it soon becomes clear that electronic equipment to Japan's Defense
a number of electronic parts devoloped by Agency, being in a notmal year the agency's
Jrpan for industrial uscs most certainly have largest supplier. These items included radar
potential military applications. "That's ab- equipment capable of picking enemy aignals
solutcly true," s:~ys Kobayashi Daiyu, presi- out of the multitude of electronic signals
dcnt of Fujitsu Ltd.-pu~'ing out his chest a passing through the atmosphere, and other
little. Fujitsu is Japan's leading computer radar cquipment capable of detecting and
maker with annual sales welt ahead of thosc following enemy troop movemente at a
of I.B.M.'s Japanese subsidiary, Nippon distance of several tens of kilometers. The
I.B.M. Kobayashi adds: "The problems of technology and parts such as integrated
using a computer system for military purposes circuits used in such equipment were devel-
are exactly the same as for civilian purposes. oped and perfected by the company for
_ And it may well be that computer technology industrial use.
in Japan, which has the most-advance~ According to byama (Jiichi, general man-
banking on-line system in the world~ is ahea~ ager of the lst and 2nd Japan Defense Agen-
of the United States. From that point of cy sales divisions, a number of the integrated
view, it isn't at all surprising that the U.S. circuits and sensors produced in lazge volume
governmcnt should think of using the accu- for industrial purposes are conctrned with
mulatcd cxpertise of Japanese companies for environmental factors such as heat, hu-~
military purposes. In fact, Fujitsu itself has midity, cloud movements and shock detec-
several times received direct requests for tion, and as such it would be quite possible to
cooperation from the U.S. Defense Depart- incorporate them into electronic instruments
mcnt!" for military use. Thus when N.E.C. Vice
It~may be that Kobayashi sreaks with such President buchi says "Japan does not have
confidcnce because he is one of the few Japa- integrated eireuits desib~Pd for military use~"
ncsc to have visited the North American Air he is not telling a lie. On the other hand, it
Dcfccise Command (NORAD) facility in is not a little confusing to read reports that
Colorado. NORAD is the facility which, the sono-buoy made by N.$.C. and nsed in
with one word from the U.S. president over joint U.S:
Japan military ezercises, was more
_ t}~e t~ot line, can plunge the world into the ef~'ective than its counterpart made by a
lioloc:tust of nuclear war, However, when, specialist U.S. manufacturer.
guicicd by U.S. oft'iccrs, Kobayashi set foot in There exist technologies developed entirely
the computer Gontrol center at the heart of the by Japan~se corporations which can be put
facility, I~c was confrontcd by an incrcdiblc to military usc without modification. A
sight. Against a background of American good example is the infrared charge coupled
off'iccrs explaining that the war of the future dcvice (I.R.C.D) developed over the last 20
would be an electronir,s war, the issue being years by Fujitsu, Mitsubishi Electric and
dccidcd on the basis of supcriority in elx- Toshiba.
10
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
FOR OFF'ICIAL, USE ONLY
Tl~is is made up of two devices-the low- called for some reconsideration of the ban on
level infrared detector device found in fire the export of arms. Recently, however, their
alarms, and the charge coupled device (CCD) voices have been joined of such people as
found in video cameras or copying machines. Morita Akio, president of Sony, and others,
The filmless elecVo-magnetic camera~ a proto- leader~ of companies with no apparent direct
type of which has recently been developed interest in the manufacture of armaments.
by Sony and is atUacting world atteation, is Hitachi Ltd., the lowest bidder in a large
another application of the CCD. But when plant tender in Iran, lost out to Fraace when
the techniques of infrared deteation and CCD the latter offered to supply Mirage fighter
are combined and controlled by a mini-com- planes. The Mitsubishi Group similarly tost
puter, they can became the eyes of a missile a bid for a thermal power plant in Iraq when
pursuing its objective~ immune to the vagaries the U.S.S.R. offered to supply tanks and anti-
of weather or any kind of jamming operation. aircraft missiles. Thus dissatisfaction with
Employed in sircraft~ tanks or field giasses the "no arms export" peace policy has grown.
they can be used to observe enemy movements Some years ago~ when the shipbuilding
at night; they can be used in the sights of industry was depressed and threatened by
artillery picces or r~fles; and in medicine they unemployment, the unions petitioned the
can be used for detectin~ ~:a~~^er or tubercu- government to widen their interpretation
losis. of thc ban to allow ezport of military
Japan is in a dilemma: how ~:.-~~iie the vessels provided they were not equipped with
production of such parts and cc~uipment, armaments. Recently, one after the other,
which have such important civilian uses, with 10 special steel manufacturers applied to join
the concept of the three principles regarding the Japan Munitions Manufacturers Associa-
export of armaments-retaining the idea of tion. What surprised the association was
Japan as a nation of poact, while at the same that all the manufacturers said they expected
time pursuing the other national policy of limits to be placed on Japan's ezport of
promotion of exports in circumstancts where automobiles to the United States and Europe
the products in question have outstandingly and that they feared for their future as manu-
high added value. facturers of automobile parts and wished to
A notable recent development has been prepare to revert to their erstwhile function as
attempts on the part of ccrtain members of manufacturers of munitions.
business circles to modify the concept of In the case of items such as computers or
"peace" to fit the realitios of contemporary wireless equipment and even construction
circumstances. In August 1981, at the well- workers helmets, though legally-speaking they
known resort of Karuizawa, a forum was were not subject to the ban on export of arms,
organized by the Federation of Economic the Ministry of Infemational Trade and In-
- Organi7ations (Keidanren), a body which dustry has used "administrative guidance" to
brin~s together somc 800 lcading business prevent thoir ezport wherever there were
organizations plus such industrial groupings grounds for auspicion that their evenYual use
a:; the Japan Iron and Steel Federation and was connected with military affairs. Tt is at
thc Fcderation of Bankers Associations of the insistenct oF the Ministry of International
Japan. During the proccedings, 1'anabe Trade and Industry that Fujitsu has refused
Bun'ichirb, presidcnt of Mitsubishi Corp., requests for technological cooperation from
openly cAlled for a removal of the restrio- the U.S. Department of Defense. But, recent-
itons on the export of arms, and there were 1y, the same ministry has given it's blessing
many presont who supported his dcmand. to an agreement whereby Fujitsu cztends
In the past it has bcen only a fcw~ such tcchnological cooperation without limit to
as Nagano Shigeo, chairman of the Japan International Computers Ltd. (I.C.L.)~ a
Chamber of Commerce and Industry, and company which the British governnaent
Kbno Fumihiko, president of Mitsubishi surely views in strategic terms. The ministry
Hcavy Industrics, who have, in a small voice, ezplains that while I.C.L. may be a strategic
11
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
FOR OFFICIAL USE ONLY
company, it is not the military itself. Never-
theless, the txhnology supplied to I.C.L. will
eurely sooner or later be used in Britain's
defenses against missiles.
How then to preserve the spirit of the
"Peace Constitution" and the three principles
regarding export of arms? The ripples caused
by that tiny little silicon ci~ip threaten to grow
into sizable waves.
COP}:RIGHT: 1982, Asahi Shimbun, Tokyo .
CSO: 4120/136 .
s
12
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
FOR OFF(CIA1. USE ONI,Y
SCIENCE AND TECHNOLOGY
STATUS OF TOP COMPUTER, OA SIIrIICONDUCTOR COMPANIES STUDIED
Tokyo COMPUTOPIA in Japanese Nov 81 pp 16-61
[Article by the Editorial Staff of COMPUTOPIA]
[Text] Part I. Computer industry.
Fujitsu Ranks First
Sales in the information processing related area of the top 10 Japanese computer
companies during FY-80 totaled more than 1.6091 trillion yen. This was roughZy
15-percent increase over the previous year's sales. There was no change in the
makeup of the top 10 companies in the information processing area, but among them
some experienced a sales decrease and some, a 59-percent sales increase, and this
very wide divergence in rates of increase may be considered a characteristic
feature of the FY-80 record.
At the same time, Fujitsu, which had wrested the top spot from Japan IBM during
FY-79, greatly surpassed its sales total over Japan IBM of 2.5 billion yen in
FY-79 and expanded this margin more than 17 times to 43.8 billion yen in FY-80 to
reconfirm.its top position. The stx Japanese companies which increased sales by
double digits through skillful handling of the OA (office automation) boom dis-
played wide differences in their FY-80 performance compared with those companies
with foreign capital which could not keep up with the changea in the market.
Three ComP~nies Revise Computation Methods
The general outline of the FY-80 accounts of the six Japanese companies (Hitachi,
Fu~itsu, Nippon Electric, Toshiba, Mitsubishi Electric ana Oki Electric) and four
forei~n-funded companies (Japan IBM, Japan Univac, Burroughs and Japan NCR) is
given in Table l. (The figures given in this article are for sales in the informa-
tion processing related area. The standards adopted in compiling the accounts
are given on another page.)
Before coming to the ~~rder in sales, we will report here that three companies,
Toshiba, Oki Electric and Japan NCR, greatly expanded their classification of
products in the information treatment related area, that resulted in an increase
in sales in the area.
First of all, Toshiba's sales in the information processing related area had been
limited to products handled by the electronic calculator industry department, and
Zj
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
+ . .
iable 1. FY-80 Sales of the Top 1G Computer Industries
(Million Yen Unit, Numbers in Parentheses Are
Increases over the Preceding Year.)
i i ~ i~~i~~~~1~ Mqi~
~ 1 , $ ' 2 ~ l~ 3'~~~~~ q t~`~;~1~ 6 ~ ~ P~ ~ ~ ~Rl~~ 9
~ * 1~ j~ ~ 581,678(16.1) 45,612(20.0) ~ 32,417(~3.1) 18,453(17.9) 382,094(16.9)~ I 11 I'(i 1 ~
; t~ . - -
1 ~ a 1 2 ~~1,947,029(14.1)' 151,814( 9.8)i 117,138(10.4) 61,846(16.5) 250,000(15.7) 3 2
X . ~ ~ ~ ~ - - - t' - -
892,810(24.0) 53,702(35.6)I 35,191(49.6) 18,045(37.4) 240,392(19.7) 4 3
~ - - - - -
~ 4 ~ 1,5d7,611( 8.4)~ 139,323( 4_3) 82,816( 9_9) _ 44,238( 7_7) 80,300(59.3) 5 4
=1 ~ R~ 1,221,397(13.5)I .86,534i 8.1) 41,072(~3.6) ---23,191(~7.6) __62.000(I7.0) 8 5
8 186,075(12.4) 14,294(~9.1) 1,506(~24.1) 3,909(27.7) 78,793(25_5)~ 6 6`
~ ~ - - } _ _ - -
Q~ I B M s338,3281 4.3) _ 13,643( 0_9) 36,323( 0.2) 338,328( 4.3) 2 Ti I~
7~ i~: 7 v-t-~ ;A9i~~, ilk~ � ;716~ � ~k4't%M~~
~~+:e R. i~t~H~~~t~s~~ e
1 4:, ~-9'-~~ (~#A~, P~~~~ A'[~tM~ ~
~ ~;~i~). Q9 i~~~ r-~ i~~ g
.i � T li d - 3 � li ~ % F G (7jC1Y~~~.
~ ~~~~k~~~~ ~ES'W`~~~ 9r6 � i71119~
~ ~ i~11~~.'~1M1~~ {v)11~)~
t;;~� . A9#A@R41t~it. rl~'I~~i~TL 10
'R~1t~~Rv~TG. (OKITAC-System50, OK
ITAC-System 9, OKITAC-1300, OKITAC-CO
SMOi ~1-~, OUK90i ~1-XfL~). !#lill~E~~
?'-~1'~d~~. ~`-~i~l~~i~TL, ~1'Y3
r; ~(%~IIt~R (Jl~~t~3~f~�9-:ti~.
~c~~Y4' � 9-:t~~, T S S~~-5t
~I., POS'l-dtll.flg)~ ~~-'/tl~�~i
~ ~-9. ~-F7at rit-. I~~~II~i~ ~
;~~Z#~. Y7 h'7i7 11
Key:
1. Measurement, control equipment
2. Measurement equipment
3. Acoustical equipment
4. Radio equipment
5. Control equipment
6. Electronic business equipment ,
7. Measurement equipment for communication use, measurement equipment for
industrial use, meteorological equipment, geosurvey equipment, marine
measurement equipment
8. Sonar, depth finders; flow rate, flow velocity, water-level measurement
equipment; remote-control blasting equipment
9. Radar equipment (for ships, land, weather, harbor use), LORAN equip-
ment, beacon equipment
10. Telemetry-telecontrol (water main control, agricultural water control,
highway control, dam :~nd river control, pollution monitors, communica-
tion control uae, oth~~rs), automated sailing equipment, bill control
system
ll. Electronic computing system (OKITAC-System 50, OKITAC-System 9,
OKITAC-4300, OKITAC-COSMO series, OUK 90 series and others), periph-
eral equipment, data-making equipment, data communication system,
online terminal equipment, (general-use online terminal, banking
terminal, TSS use terminal, POS terminal and others) personal computer,
word processors, medical terminal equipment, Chinese character equip-
ment, software
1~8
. FOR OFFIC[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
FOR OFFICIAL USE ONLY
Sales totaling 85 billion yen, working profit of 3.2 billion yen and profit after
taxes of 1.4 billion yen are expected for FY-81.
The major activities of this company from FY-80 through FY-81 are the following.
Organization innovation: As of 1 April 1981, the company introduced an organiza-
tional change that consists of abolishing the headquarters system and switching
to the Business Headquarter System based on the types of products lines. This
is a stepping stone to the expected realization of 100-billion-yen sales in
FY-83. The three newly established departments are: the first Business Con-
trol Department (in charge of large systema), the Second Busineas Control
Department (in charge of. medium and small general-use computers and complex
systems such as POS and graphic systems and systems development) and the Customer
Business Department (in charge of customer service). There are in addition the
~ Comprehensive P1ans Department (establishment of long-term and comprehensive
business plana) and the Technology Plan Department (long-term technology develop-
ment plan), which are newly established organs to establish the company strategy
along these lines.
The reason for the establishment of the business headquarters system is to improve
the quality in customer service by consolidating all activities, stocking, sales
and maintenance service in one business headquarters and thereby clarifying
where the responsibility lies. The reason for the establishment of the Second
Business Control Department is to expand in the future the sales volume of the
Department's products to the level of the main frame system (currently one-third).
Advance into OA: In the midst of consistent lateness in advance into the OA area
on the part of the foreign-funded businesses, this company sponsored an OA sym-
posium in Tokyo and Osaka during November 1980 at which time it introduced its
concepts re~arding OA, which it called IOS (intelligent office systems). Then,
in May .1981., preceded by a buainess show, it announced its initial product based
on the IOS concept, the Japanese-character word processor UW-10, the personal
computer UPlOE Model 10/20 and the UP10Q.
At the same time, it put on the market as related products the multiple-purpose
off ice computer UNIVAC Series 8 Model 40 Chinese character in May. Still later,
in July 1981, it opened its OA showroom at Shibuya in Tokyo. The company also
calls this room an "off ice school" where it off ers personal computer basic
courses and instructional courses in the operation of word processors.
Whi]_e tlie company was making direct sales of its OA equipment, it decided to
adopt the sales-outlet mode ~ust as the other Japanese makers in order to
increase its sates. The first member the company tries to use is the Electronic
Computational Center which uses the Univac-made computer. These will be
organized as sales outlets for the sale of personal computer and Japanese word
processors.
i'ul.fillment o(' product series: This company is promoting other product lines in
addition to OA. 7.t added its small computer OUK Series 80 and Chinese-character
related product~ such as Chinese-character office computer during 1980. In
August 1980, it introduced its POS syatem and marketed its UNIPOS 6000.
Another outstanding product is its graphic display UNIVAC AGS 2000 series
(August 1980).
1~9
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030028-3
Table 18. Breakdown of Sales of Japan Univac
(Unit: 1,000 Yen)
_ , - ~ ~ -
r
' '4~?~?+51~
9 115,792,092 56,192,Id0 44,i69,772 127,814,460 56,063,453 47,013,960 136,BB3,953
x I ( 3,680,814) ( 3,917,830)
6,634,938 I 19,601,488 18,604,468 7,831,958 20,657,580 19,985,509 8,504,029
1 n;~ ~ ( I,550,372) ( 1,665,459)
I~~}~ ~+~7~ B,i25,820 ~ 10.449,324 10,832.782 ' 7,742,362 11,655,d98 II,605,978 7,791.882
11 ' ~ 902.732) I I ~ 967,165) ~
- - - -1 f -
- , IJ0,752,850 ~ 86,242,952 73,601,022 ~ 143,388,780 I 88,396,531 18,605,447 153,179,864
l` r~ ~ i ( 6,133,918) i I ~ 6,550,454) I ~
- (Note) The values in parentheses are average monthly sales. Electronic computer
sales include quota sales of 20.637 million yen in FY-79 and 10.401
million yen in FY-81. Total sales include quota sales of 456.239
million yen in FY-79 and 182.537 million yen in FY-80.
Key to Table 18:
1. Classification 7. Total sales
2. FY-79 (Apr 79-Mar 80) 8. Residual sales agreements
3. FY-80 (Apr 80-Mar 81) 9. Electronic computer costa
4. Carry-forward sales agreementa 10. Electronic computer sales
5. Monetary value 11. Maintenance service and
6. Total sales agreement computing contracts
12. Total
Table 19. Sales by Areas of Japan Univac
(Unit: 1,000 ~en)
~ , ~
_ ~
~n, ~ 7,038,122 9.5% 7,548,829 9.6% ~
d.~~ 32.378,249 44.0 33,404,870 42.5 j
29,381,154 31,8 24,087,�85 30.7 i
~1 7,635,097 IU.4 7,809,895 9.9 '
~ p~ {~1 3,174,400 4.3 5,753,868 7.3 '
* ~ _ _73,607,022 100_0_ 78,605,447` l00.0 j
Key to Table 19:
l. Sales area 7. Government and municipal off ices
2. Period 8. Financial and securities
3. FY-79 (Apr 79-Mar 80) 9. Manufacturing industry
4. FY-80 (Apr 80-Mar 81) 10. Businesa
S. Total sales 11. Others
6. Constituent ratio 12. Total
50
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540030028-3
HOR O6'Fl('IA1. 11~F ONI.Y
This company put strength into the graphics area even at an early stage, and
CAD [computer aided design] and business graphica are the most advanced indus-
tries. The business graphics displayed at its May 1981 business show were an
excellent demonst~ation and drew much attention.
In the area of general-use computers, the multiprocessor system UNIVAC 1100/62E
(July,1980) and a new model 61E of the UNIVAC 1100/60 bank-card system (October
1980) were announced.
Self-developed products: As one phase of the diversif ication in products, self-
developed products of Japan Univac made their debut in 1981. The first to appear
was the information control terminal system, SF-7000 Shopfloor Terminal~ System,
for working sites, which was announced by the composite system business section
of the Second Industrial Control Department on 11 July 1981. This product was
developed with the conf idence of export to the American Univac Company.
At the same time, it announced its UNIVAC Model 65 which ia a general-uae com-
puter in September 1981.
. . _ . . - -
I 1 53~1~ b 54, SS$J~
~
I
,
, ~
~ �
i
i
I
I
~
Figure 10. Sales Makeup Ratio for Japan Univac
Key:
l. T'Y-78 3. Computer sales--percent
2. Mnintenance service, computer 4. Computer lease--percent
contri?cts--percent 5. FY-79, FY-80
- ManuEacturing industry market: The company announced its new production control
use system package UNIS based on the MRP method in September 1979, and it
expanded the use of the UNIS so that it can be applied to the 1100, 90, 7, 80, $
and all the other computers handled by the company. In addition, it promoted
CAD/CAM centered on the AGS 2000 and is nurturing its factory automation as one
of its pillars through self-developed equipment such as the above-mentioned
industrial site information management terminal.
, Pro~;ramleas software: In May 1981 the company marketed the so-called OA-use
software named the "MAPPER-1100" which is said to be able to perform information
processing without the construction of a program. It can activate the functions
of a large computer without programming through a dialogue mode. The English
numeral Kana version release was slated for August and the Kan~i version in
January 1982. A new concept called electronic filing is the base for this
51
FOR OFF7ClAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
I~VK vrri~ u~i, u,~r, inv?.~
;;yst~~n~, .ind Univac i5 placln~; all its bets on this software as the basic image
in OA .
8. Mitsubishi ~lectric
Mitsubishi Electric is a company which is definitely on the way up to a higher
rank in information processing area sales. Of the 10 companies, 3 companies
included more products in their accounting of information processing area sales,
" but this company maintained its 8th rank through FY-80 just as in FY-79. Based
on past methods of accounting, this company would have been in seventh rank.
'Phe magnitude of the rate of increase in sales of this company can be seen by a
look at Figure 3. Although the sales of inf~r~ation processing area in total
sales w~s only S.1 percent, placing this company at the lowest rate along with
'Post~iba, its computer business has continued to shine with the fanfare of the OA
age .
The following are the major activities of this company from FY-80 throughl~Y-81.
OA policy: In June 1980 an off.ice automation promotion committee was established
which set up specific policies for OA business promotion by which means the OA
policy of this company was in iLiated. According to a company survey, the OA
related market scale will grow to 600 billion yen by 1985. Assuming this company
is able to pick up a 10-percent share of this market, it will amount to 60
_ bil tior yen, so investment in this area will be profitable according to the
deci~ion that was made.
- l',mphasis Is placed on office computer5 ~~~.d facsimiles where OA equipment is con-
cerned, but a test-produced Japanese word processor was displayed at the Inf orma-
tion Processing Association's exhibition in October 1980 which appeared on the
market in April 1981 as the Mitsubishi Japanese word processor M8510. The com-
pany also established its personal computer project section in January 1981 and
announced its entry into the personal computer market. Its entry was displayed
zt tne business show in May, and the project section was changed to a pers~nal
computer department during the same month. According to th.is company, its
formal entry into the personal computer sales area will take place in the spring
of 1982 in the form of a business-use personal computer with 8086 family 16-bit
CPU and main memory of 128/256 KB cl.ass.
'Che company set up three direct sales shops during FY-81 and has acquired spe-
cial contract sales stores for office computer, household electrical appliances,
office equipment and stationery. It also sta.rted purchase of application programs
- from American softwarc houses in the spring of 1981.
't'I~c company l~,is Ret uE~ nn "OA P1aza" which is a showroom for all OA equipment in
Marunouchi, 7'okyo, wli:tch was opened to the ~;eneral public on 8 June.
Office computer: In FY-80, office computer deliveries from Mitsubishi Electric
passed the 4,000-unit mark, to total 4,300 units. Then, by the early part of
l~Y-81 , it act~ieved the remarkable record of cumulative deliveries of 20,000
units. The Kanji processing off ice cornputer which was put on the market in
March 1980 has been accumulatiiig good orders for a total of more than 20,000
units, greatly exceeding expectations. The feature here is the wide expansion
I.n MET,COM of f ice computer selections in boCh FY-80 and FY-81.
~2
FOR OFF'ICIAL USE ONI_Y
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
HOR ON'FI('IAL U~H: ONI,Y
The company not only enhanced its image by exhibiting an "office computer which
can understand human speech" even though it was a test product (business show of
May 1980) and by demonstrating new technological strength in the form of
"picture prc~cessing off ice computer" in May 1981, but it also strengthened i~s
lineup by adding such practical models as the MELCOM 80 OCR (September 1980)
which is an office computer with the OCR function, and the MELCOM 80 Model 4
Japanese-language unit (December 1980), MEI,COM 80 Model 48 Japanese-language unit
(February 1981).
For FY-81, the goal has been set to obtain 5,600 order.s, partially because it
rhymes with Showa 56.
IBM compatible equipment plan: October 1983 is the target date for starting
delivery. Development of the IBM compatible general-use computer is close to
completion. According to the releases, it is a dispersed processing oriented
general-use computer and the architecture adopted is such that it can be used as
a host computer or as a terminal contr.oller. About 1.5 billion yen was inveated
for the construction of. the new plant within the computer production plant aite
in Kamakura in Kanagawa Prefect~ure (completed in May 1981), and this is the new
series development plant. Pre::ent plane include test production of the successor
to the presen t COSMO 800, to bE~completed sometime in 1981.
COSMO series: The COSMO series computers have been completely switched to be
bridge machines to develop IBM compatibles. These include the new 900 and its
MP version (March 1981) in the case of COSMO 900 II, sales of COSMO 800 III and
800 S, and reinforced performance of COSMO 700 III and 700 S(March 1981). The
_ entire 700, 800 and 900 series were provided with MP version, while dispersed
microcode-type functicnal engines (high-speed mechanism for separate functions)
were placed in the 700 and 800 series to be compatible with IBM machines as well
as to be a weapon against the other competition.
Software policy: This company is taki.ng a stab at various areas in preparation
for the day when software will play tl~e major role. The "MELCOM Industrial
Software" established on 1 July 1980 is the software development specialty
company for process control for industrial-uae computer systems. Demand for
industrial-use computer systems increased 80 percent in FY-79 and another 30-40
~~ercent in T~'Y-80, s~ that dependence solely on external sources for sof tware
would make difficult quality control and improved productivity, and this prompted
the establishment of the new company. Mitaubishi Electric put up 60 percent of
the capital and Mitsubishi Engineering put up the remaining 40 percent.
In addition, the "MEi,CO Control Software," a design, production and sales spe-
cialty company in ehe area of microcomputer control system software, was formed
on 1 October 1980. The software department of the company's control equipment
manufacturing factory was separ:ited from the company and became independent
"MELCO Control Software."
OfCice computer export: The MELCOM Business System Company was set up as the
sal.es company to conduct office computer export directed to the United States in
December 1977, and this company has succeeded in exporting products under its
- own brand name to the United States. The new company, "American Mitsubishi
Electronics" (located in Compton, California), formed from a merger with MELCO
- 53
F'()R OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
FOR OF'FICIAL U5~ UNLY
Sales Company (in charfie of. sales of. semiconductore, FAX, color-CRT), went into
business in July 1980 at its present site to aervice the West Coast, and is sell-
ing about 100 units of off ice computers per year (MELCOM 80 Models 18, 28 and 38
with about 6 deaI.er companies). It plans to establish a sales off ice on the Ea.st
Coast and expand sales in FY-81.
At the same time, there is need for a special-use off ice computer as a sales
product for the American market, and development of a~pecial-use off ice computer
using the Intel 8086 family 16-bit CPU is being pushed with a target date of
April 1982. With this introduction, American Mitsubiahi Electronics plans to
increase its sales to 300 units in FY-82.
9. Burroughs
The Burroughs Company of Japan (hereafter abbreviated to Burroughs) does not dis-
close its sales breakdown as usual, giving a reason that it settles accounts in
combination with the parent company. 1'his may be said to be one reason why the
Japanization of this company has been delayed. Looking at the income tax return,
which gives the only publicly available figures, the values are 8.5 billion yen
for 1977, 10.6 billion yen for 1978 and 9 billion yen for 1979, followed by a
sharp drop to 3 billion yen in 1980. According to a survey conducted by this
journal, there was also a decline in sales of about 7.5 percent from the 54.6
billion yen in 1979 to 50.47 billion yen in 1980, while net profit decreased 48
percent to 2.3 billion yen.
- 'Phe reason here is the delay in this company's response to the Japanese market,
as a result of which the company found it necessary to invest large sums in
1980 to overcome the inadequacies. Tliis involved the establishment of 20 support
centers throughout the country to set up a support system, along with 12 demon-
stration centers for the B1900 small computer use DB/DC, the replacement of com-
puters of data centers to new types and the new establishment of the Yokohama
Engineering Center at a cost of 1.2 billion yen.
The Burroughs Company was a purely Japanese business back in the Takachiho Trad-
ing stage, and then it made an abrupt 180-degree turnaround to an American busi-
ness with 100-percent capi.tal outlay un the part of its parent company. It is
- un.der. this American business management that it is trying to hammer out sales
policy suitable Eor the Japanese market. The degree to which this conversion
_ can be efEected witl be the key to its revitalization.
'['he followi.ng are ti~e major to~~ics from FY-80 through FY-81.
Blumenthal system: I3lumenthal, who in August 1979 did not agree with President
Carter and resigned his post a:; secretary of the treasury to enter the services
of the Burroughs Company, becanie chairman of the company on 1 January 1981.
- Siiice l~e became the true numbe~� one i~i this company when he assumed the post of
leadin~; director in 5eptember 1980, h~~ immediately introduced an organizational
revolution.~ The~s}~illover evei~ exten~led to the Burroughs Company in Japan in
1980 and ]981.
.Japanese market policy: The item which underwent a complete change with the
Blumenthal system was the polic:y with regard to the Japanese market. After
54
F~)R OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
FUR OFFICIAL USE ONLY
Blumenthal had been in Japan only 10 days during a visit in November 1980, he
signed the papers for the construction of a plant which had bean stalled for
several years. 'i;is comment was: "I would like to see us initiate production
of Computers in ~apan early in the eighties." The plan involved, f irst of all,
production of Kanji terminals and small computers aimed at the Japanese market;
second, a buildup in plant capacity to let this plant serve as an export base
for shipments to Asia, the United States, South America and Europe; and third,
expansion of products to large comput~-~s, various types of OA equipment and
data communication equipment, and even a~ump into LSI production. This plan
went forward as planned at the start of 1981, and it has been decided to estab-
].ish a manufacturing engineering center in Japan to produce a Kan3i processing
system designed for the Japanese market and terminals for financial organization
use. An engineering center for technological development (about 100 people)
was established in Yokohama, and the plan is to conatruct a plant in Kanagawa
Preiecture. This will be a final assembly plant, and it is expected to start
soon on local production.
One other topic is the conf irmation of the American Burroughs Company`s policy
to set up its first basic research laboratory outside of the United States in
Japan. This will be an IC laboratory, and once it is completed, a comprehensive
system will have been established in Japan from IC development to computer
production and sales.
In addition, the Burroughs Company of Japan acquired a site for production of
business forms related to computers in Tochigi Prefecture as its second volley
into the Japanese picture.
" New model: The B6900 large computer (July 1980), B5900 (October 1980), B900
(October 1980) and the CP9500 familv c~f dispersed processing computers (November
1980) are the principal new additions. No announcements of new type equipment
were made during 1981. In another dir.ection, President Blumenthal stopped
deve]opment of the BSP aupercomputer. Along with this announcement, Japan
El.ectronic Calculations, which had ordered a BSP to be the number-one user in
Japan, switched over to the Hitachi larRe computer.
OA policy: In order to strengthen it:i off ice equipment area, the American
Burroughs Company purchased the Reductron Company which makes word processors,
the Graphics Science Company which makes facsimiles and the Context Company
which makes OCR scanners, followed by the purchase of the SDC Company which is
a lar~e software company, and it has purchased the magnetic memory equipment
maker Memorex during 1981. However, the present situation of the Burroughs
Company in Japan is that it has not begun to realize any benefit from these
acquisitions.
The company is fettered by previous agreements with Japanese industries and is
unable to operate freely. The consequences of this situation are major problems
wh ich this company has to cope with.
10. Japan NCR
.lapan NCR is Eightin~ hard. Its total sales for FY-80 decreased 7.2 percent from
the precedinfi year to 72.2 bill.ion yen. The operating prof.it and net prof it
55
FOR OFF[CIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
rutt urri~ ~n~. ~~~r, Uivi,r
' ,I~~c:r~~n~ir~l 7..fi pc~rcc~ne niicl 13.4 pcrcent respectively. In the midst of a aituation
!n wl~icV~ coinputcr coml~anies have been expanding sales on the crest of an OA
boom, this company together with the Burroughs Company are the only 2 members
of the top 10 companies which have been experiencing a standstill. As mentioned
earlier in this report, this company altered its sales departmental classif ica-
tion and switched printers and magnetic tapes, which previously had been classi-
fied under terminal equipment, to the electronic computer category; still, the
sales for the electronic computer department suffered a decrease of 7.7 percent
(Table 20). According to the cornpany, Japan NCR had the highest sales of all
the subsidiaries of the NCR Company of the United States, but it cannot be
denied that there is the handicap of this company's delay in adapting itself to
the Japanese market.
Table 20. Sales of Japan NCR by Departments
(Unit: Million Yen)
. , , ,
fi s ~ 30,578 ~ 39.29% 28,236 i 39.11�0 '
r. .
r, 15,421 I 19.81% 19,91B 27.67 I
7~~ p~~ ~ 31,835 , 40.90 23,984 33.22 i
ft - 77, 834_ ` 100.00 ~ 72.198 100.00 ~
Key to Table 20:
1. Classif ication 6. Terminal equipment
2. FY-79 (Dec 78-Nov 79) 7. Other inf ormation treat-
3. Constituent ratio ment equipment
4. FY-80 (Dec 79-Nov 80) 8. Total
S. Electronic computers
_ L~usiness Performance in 1980: The changes in sales prof ile during the past 2
years following the changes in salea cl.assification are given in Figure 11. What
are classified under electronic computer, terminal equipment and other informa-
tion equipment are shown in detail in Table 21.
i ioo ~ -.1,
, ,
I ~
I
, so
I! ,h+~ ,={~p~i1. ~n i
. ' itL~ I
o .1 i
i~0 a~@4as]~ 6 BB~as1~ s~fass~F ~ I
. . . _ _-__�.."_'__J
I'igure ll. Trencls in Salea by Departments of Japan NCR
~Key on fo.llowing page]
JU
b'OR OFFICIAL U5E ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044500030028-3
FOR OFFICIAL USE ONLY �
KcY tc, riKure l.l:
l. l:lectronic cc~mputers 4. 1978
2. Terminal equipment 5. 1979
3. Other information equipment 6. 1980
Table 21. Information Processing Related Products of Japan NCR
x�
2140POS9-cf'll. 8 i
2151POS3-:t11. 9
255P 0 S 9-;f~~ 10
2272;H. i~~( i� 3-: l~ 11
280POS9-;t~~ 12
64407 F~1 ��r 4~� 7~/ i'~ - 13 '
6d09 h' �i h� 7 F~l ��r 9~�'y ~1 i 9 14
1771; 1172~1l8~Rh~131~�Z 15
7900C R T~'t~7V~( � 9-it~~ 16 ~
7200 C R T~' ~t ~'y I~ �~3 - e t/l. 1~
7740T-y~~ � h �r7 � s~~-~- 18 '
7750-3000M I C R 9-: t~~ � i~3'L 1'9
6780M I C R5}lAl1!$A~i! 2'1
2950;REA 9- 3 t~~ 21
2116~~V i~9- ~ 2a~
21207�~>~9- 24 ~
~ ~ ` 2125'~~V i~4- 25 ~
2130'~~I.i~9- 2S ;
Key to Table 21:
1. Electronic computers 15. 1771/1772 automated cash regis-
2. 8000 series ter
3. DPI series 16. 7900 CRT display terminal
4. 643 COM series 17. 7200 CRT display terminal
5. 721 communication system 18. 7740 tabletop encoder
6. 725 store-level controller 19. 7750-3000 ICR terminal system
7. Terminal equipment 20. 6780M ICR classif ication
8. 2140 POS terminal reader device
9. 2151 POS terminal 21. 2950 general-use terminal
10. 255 POS terminal 22. Other inf ormation equipment
11.. 2272 ~eneral-use online terminal 23. 2116 electronic register
12. 280 POS terminal 24. 2120 electronic register
13. 6440 matrix printer 25. 2125 elactronic register
14. 6449 dot matrix printer 26. 2130 electronic register
The electronic computer area was au~mented by the Japanese information system
I-8290 capabl.e of Kan,ji proce~~ing and the communication control NCR Comten
- equipment for IBM uaers, znd it has etarted to ask for payment for the aoftware
services. Terminal equipment, including the NCR 1771 and 1772 which are automated
cash handling units admirably suited for an increased installation of "unmanned
corner" at banks~ and the POS for department stores and the POS in the form of .
NCR 2140 whose sale to specialty stores was initiated in May 1980, is seeing
an increase in orders. On the other hand, its independent terminal and other
information processing equipment sales have decreased greatly because of the
price competition and the disposal of its pressure sensitive paper-making capsule
production department.
57
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
� N'OR ON'NI('IAL t1~H: ONLY
- oA equlpment: At ttie outset of. 1981, Preaident Mitomi announced that 3apan
NCR was in the process of advancing the architectural structure of its OA and
that a start would be made toward word processors during the course of the year,
but nothing specific has materialized as of the end of September.
Assistance by US NCR: In May 19a1, 14 of the directors of NCR of the United
States assembled in Tokyo and held the f irst board of directors meeting in Japan.
These people saw Japan's rapidly developing computer industry and market. Japan
NCR told them that Japan's computer technology is advanced, the speed of devel~p-
ment of new technology is fast and the competition for orders is fierce, and
thereby asked for US NCR's assistance in swiftly establishing a system that could
successfully cope with this situation and could develop products suitable for
the Japanese market.
Software: Although Japan NCR was conspicuous for its lack of new product announce-
ments, it showed an attitude of emphasizing the importance of software. In May
1980, it set up its Central Software Service Department to expand its software
maintenance service. The software NCR TRAN-QUEST system for data base use intrn-
duced in August 1.980, the online package system NCR STAR directed ~oward medium
and small banks and truat companies introduced in February 1981 and the NCR ASK
end user-oriented conversational information search system introduced in August
1981, are software of note despite their inconspicuous nature. According to
.Japan NCR, the American NCR received 500 orders for IMCS-II packages f or medium-
size manufacturing companies (as of February 1981). NCR is a company whose
activities in the software area are noteworthy.
Favorably performing ATN~ product of NCR: Another good news for Japan NCR is
the Eavorable performance of the ATM (automated teller machine) for bank use,
which accounted for 998 units or 42 percent of the 2,400 units sold in Japan
during the course of 1980. The company is aiming at sales of 1,000 units during
FY-81.
I'a.rt II. Office Automation Industry
Diagnosis of Real Stren~th of "Top 10" OA Makers of Busineas Machines
OA F.quipment Makers with Tremendous Growth
WLtI~ tlie arriv~il of tl~e UA ci~e, buainess equipment makers, computer makers,
communlcal-.i.on equi~>ment makere~ household electrical makers and companies
wVilch lland.le such products al.l are fi~hting to be carried along by the tide
regardless of whether they are makers or traders. But the strange thing is
t}iat wl~en the time comes to come forth with cold figures, there is no clear-cut
- announcement: "'I'hese are the sales of this company's OA equipment." In other
words, all these companies while professing themselves to be an OA maker have
not come to establish OA as an integral department.
Two r.~asons come to rnind with regard to this situation. The first is: "What
is OA?" The definition of OA has not been clearly demarcated so that there are
som~. fine dlff.erences between companies in what they consider OA to be. The
other reason is that every company started to deal with a large number of prod-
ucts once the word OA became fashionable, and the products though loudly talked
53
FOR OFFICIAI. USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030028-3
FOR OFFICIAI. USE ONLY
about have not yet clearly demonstrated good sales performance. Thus, they do not
wish to announce this fact out of their defense reaction.
It is difficult to define ~ust what OA covers and what kind of products come under
this categ~ry by a simple statement. First of all, when one mentions off ice, it
can involve a variety of businesses with different contents, such as f inancial
industry, stores, laboratories, factories, administrative offices and sales
departments which also can vary widely in scope. Therefore, depending on the
type of office there is a different method of OA application to it. In addition,
there are wide differences in the reasons any business acquires OA equipment:
to rationalize office work, effect cost reductions or to mechanize.
Depending on the reason, the scope for OA would be widely different. The first
mentioned reason can be amplif ied by saying that OA encompasses everything used
to facilitate office work and includes already present computers, copiers,
electric desk calculators, steel desks, chairs, bookcases, f iles and writing
equipment as well as the layout of this equipment.
On the other hand, the latter, while also having the objective of rationalizing
off ice work, limits the use of OA to new type off ice equipment with intelligent
functions provided through computerization and includes advanced equipme.nt pro-
duced by the most recent technology such as office computers, personal computers,
(Japanese) word processors, facsimiles and reproduction equipment.
Here, we will adopt the second definition, following our practice in last year's
survey, in order to def ine the scope of OA makers easily and we will consider
as OA equipment office-use computers and related equipment, word processors,
facsimiles, reproduction equipment and related equipment and the associated
expendable items.
- The 10 business equipment makers discuased here do not include any company with
a strong computer maker image. They are all superior busineases which either
- are already listed on the stock exchange or are well qualified to be listed.
According to the "Industry Ranking Special Editi~n" put out in NIPPON KEIZAI
SHIMBUN on 4 September, these 10 companies are all top-class companies and they
are: 1) Matsushita Electric Industrial (lOth rank), 2) Canon (17th rank),
3) Matsushita Communication Industria] (28th rank), 4) Casio Calculatar (34th
rank), S) Ricoh (40th rank), 6) Sharp (46th rank), 7) Minolta Camera (107th
rank), 8) Koniahiroku Photographic Induatry (140th rank), 9) Tokyo Electric
(218th rank) and 10) Uchida Yoko (704th rank).
When ranked accordinfi to profitability, the order is 1) Matsushita Communication
Industrial (46th rank), 2) Matsushita Electric Industrial (76th rank), 3) Ricoh
(181st rank), 4) Casio Calcul.ator (195th rank). 5) Tokyo Electric (271st rank),
6) Canon (271st rank), 7) Minolta Camera (313th rank), 8) Sharp (353d rank)
and 9) Konishiroku Photo~raphic Industry (394th rank).
The ranking according to growth is 1) Canon (36th rank), 2) Casio Calculator
(47t1~ rank), 3) Uchida Yoko (195th rank), 4) Mritsuahita Communication Indus-
trial (235t1~ rank), 5) Minolta Camera 342d rank) and 6) Sharp (399th rank). It
is readily evident that the OA-related businese equipment makers are all high-
profit and large-growth-rate superior industries.
59
FOR OFFIC(AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
HUK UFN7('IA1. USE ON1.Y
When the growth rates of these companies over the last 5 years were compared, the
results shown in Figure 12 were obtained. This graph was constructed with the
sales of each company during FY-76 being arbitrarily set at 100 and indexing
the trends which followed. Casio Cglculator with growth of 2.9 times hEads
this list, but all the companies are seen to have en~oyed great gruwth. Unfor-
tunately, it was not possible to plot a comparison table for only the OA
related area of these companies because they were mixed with the sales of
related products by these companies. As a result, rather than compare these
companies, each company's sales eituation ia individually discuased here.
I ~It~ - ~l ) c~.a
~ 0 A I~R'!g t-1~ -o~lllM4~M iJ~~ttllt ~Z 1 ~ 300
~ (~!i#u5! ~I�It�;c.l:rf k ~s1uUt_!!C1#) ~ i~titallR i
~
I
~
~i ~ ~ ~ 250
. ~r^~ ~ i~
I ~ ~ 4/ /
~ (5 )
i 9
~
i 200
' (6)
~ ~i~- (7
~ ir-7
~ Rl~:~"tr Q ~
, ,~,ty;.~.~ 9 )
~ 7~~4:~t j i so
~ (10
~11 )
~ Tt~a�.~~
I
I
ioo
i 5I 52 53 54 55(:F If )~].1 ~
~
_ Figure 12. Comparison of Businesa Record of OA Equipment Makers
(Calculated on Sales of FY-76 as 100)
Kcy:
1. Index 8. Uchida Yoko
2. Casio Calculator 9. Konishiroku Photographic
3. Matsushita Communication Industrial Industry
4. Canon 10. Tokyo Electric
S. Minolta 11. Fu3i Xerox
6. Ricoh 12. FY-76, 77, 78, 79, 80
7. Sharp , 60
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
FoK oFF~c~A~. USE ONLY
Because of the tremendous growth in OA equipment, we hope that every company
will release data which will make possible comparisons of OA sales among com-
panies for the next surveq.
Ricoh: Rationalization of "Four Functione" Through OA
This company prides itself on being the f irst company in Japan to espouse OA.
It is the standardbearer for OA on the part of the business equipment makers.
Ricoh breaks down business contents into four major categories, by which it
- seeks to maintain rational interplay between the categories, improve business
eff iciency and effect cost reduction. The means to this end is the array of
various business machines. The advent of the microcomputer and the large
decrease in cost of inemory and IC, the advances in making machines more intelli-
gent, the combinations of the different instruments and systematization have
_ taken place. This company says that now is the time to start office automation.
The "four functions" which Ricoh espouses as basics of OA are: 1) document
composition; 2) reproduction, printing; 3) information transmission; and 4)
storage, search. It proposes to introduce OA to enable the amooth flow of these
functions and to further improve eff iciency. Ricoh has a full stock of the
various items of equipment necessary to this end.
First of all, the representative equipment for document composition is the ~
Japanese word processor. Ricoh aells a unique word processor, "RIPORT 600,"
which has facaimile capacity at its output section. This unit can activate a
facsimile located in a distant off ice to print out a copy directly in the other
_ off ice. The printout is through a 32 x 32 dot matrix per Gharacter which pro-
duces highly dense and very readable characters. Once one becomes accustomed,
he can use a two-stroke method which has higher input speed than any other
method. These are some of its feasures. Ricoh ie going to share the specif ica-
tions of this input method with Hitachi and popularize and sell the instrument
well.
Mother representative item of document composition equipment is the office com-
puter "Ricom series" which is of a component type and has a memory unit, displ.ay,
keyboard and printer which are independent from each other. The deaign is such
that each unit can be efficiently used depending on the type cf work. The
"RICOM 2600 series" will be added to the line in October, enhancing this prod-
uct line even more. The M15 plan which envisions 15 percent of the market
share is proceeding; at present it has 10 p~rcent of the mdrket.
The reprod~iction and printing related equipment is the dollar box which accounts
Cor 85 percent. of Kicoli's salee. The popular "DT series" is the mainliner here,
b�t a l~t~;li-speed PI'C "F'f 7500" with a apeecl of 60 aheeta per minute has been
~~l~iced on the market to meet the needs of large businesses for a large number
of copies.
Ricoh announced its intelligent reproduction unit "GT-10U0" as the model OA
reproduction equipment last spring. This is a reproduction unit into which an
original can be put, and then sub~ected to editing, additions, deletions, etc.,
bef.ore capies are made. Ricoh was the first to come out with an actual
61
FOR OFFICIAL IISE ONLY ~
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
NOR OHFIC'lAl. UtiE ONLY
reprocluction unit wl~ich Altered the role of a copier which simgly "reproduced
the same thing."
Table~22. Ricoh Sales
- - -
g~~ ~1~ i ~,4p?.� 95.7 ; az.5 837.3 371.9 44.6 ; 8A.) ~
,~_._.._~._...j_~_. _-_____T~___.~'~._~_~___~-._'__'._.;.^~ ..__t"___.__~-_...___.1~__
0~~0 5! $ ~ 1, 715 . 7 ~ 130. 0 i 62 .2 ~ 1, 081 . 5 402 . 6 70 . 4 98 . 9
. ~ _ - - - - t---- - -
ll~~pS~~ i--- 1,91A.5 1 i74.1 11.6 i 1,279.4 433.1 ~ 92.7 ' 90.7
~ - - - - - _._-t - - - -
- - '
218~1/~ 2,243.3 219.9 118.4 i I,d24.9 464.8 ' 132.2 f 87.9
- - . _ _ _ - - - - - I .
~~p~l~. 2,57/.0 I01.3 110.1 f 1,599.7 541.0 112.5 ~ 175.6
I-_ - - (
Key to Table 22:
1. Account year 7. Facsimile equipment sales
2.~ Sales 8. FY-76
3. Working prof it 9. FY-77
4. Net profit 10. FY-78
5. Reproduction equipment salea 11. FY-79
6. Reproduction related expendable 12. FY-80
item sales
. _ . - - ~
( ct.t~)
2,500
2 ~~~i
2,000
i
~ 1,500 0
A
, 3
~
~
_ ~
I 1,000 ~
I
~
~ 500 i
I I
i ~
~ 4 I
~ 51 52 53 54 55 l~ ) i
~ ~
~ I
Figure 13. Ricoh Sales, OA Equipment Sales
Key to ri~ure 13:
l. (l00 million yen) 3. OA equipment sales
2. Sales 4. FY-76, 77, 78, 79, 80
62
FOR OFFICIAI. USE~ ONI.Y
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
- HOR OFFICIAI. USE ONLY
Rico}~ ia aiming for a 45-percent ahare in PPC, and it has but a little way to go
before it will attain this goal.
I In the field of facsimile, which is a representative example of the information
treatment area, the company developed the world's f irst high-speed facsimile
~ for business use, and has been concentrating its business on high-speed units.
It is said that this company has 90 percent of the Western ma.rket share and
50 percent of the domestic market share. Increasing its share in the medium-
speed market is its present goal, and it hopes to achieve a better balance by
such a shift. The main equipment is the "RIFAX 6300 series" for trunkline
network use and the world's smallest G3-G2 "supermini" "RIFAX 3300 series."
Ricoh's storage and search equipment includes microfilming equipment carried
over from the past and a"Linac information search system" which retrieves
documents required in computer searches from f iles. This system readily
searches for and retrieves the desired document and makes possible a great
speedup in business treatment.
Ricoh is trying to combine these various products to obtain even better and more
convenient-to-use OA systems. The intracompany system has been altered to
separate the plans section from the sales headquarters, made it into the plans
headquarters and thereby reinforce the system so that it could quickly reapond
to the needs and develop new products.
Fu~i Xerox: With OIS Which Incorporates Respect for Man
Fuji Xerox uses the term OIS (off ice information system) in the same manner as
OA. It is said that this name is preferred because the term off ice automation
creates an image of conservation of manpower and mechanization. This company
wanted to introduce a term which describes an environment in which man can work
in a more meaningful manner, and thus the term OIS was proposed.
This line of thinking is clearly represented in the company's work station com-
munications network "Isanet." This is a process developed by Xerax Company of
the United States, for which Fuji Xerox disclosed the patent in Japan in January.
The various work stations within an office are connected to a coaxial cable
(Isanet cable) for mutual communication. At the same time, work stations can
be freely added, removed or altered without ever having any effect on the rest
of the network, making f or easy utilization which is the ma~or feature of this
system.
The Isanet can be treely altered in line with peraonnel changea and organizational
chan~es and ia un OIS with respect for man.
The handling of intraplant information transmission and collection at a work
station may seem a long way off, but Xerox is~treating it as an item of the
present.
The single OA piece of equipment which Fu3i Xerox is marketing is centered on
PPC. The sales of PPC-related products account for 90 percent of the company's
total sales. Fu~i Xerox was establiahed in 1962 as a PPC maker and went along
for about 8 years with no competitor in thia area, so that it was able to
63
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030028-3
FOR OFFICIAL USE ONLY
proceed smoothly in product development and sales. As the domestically pro-
duced PPC centered on the popular model began to dominate the market, the prod-
uct development based on the premise of rental of Fu~i Xerox became inappro-
priate to the popular type PPC market, and a shif t was made from minor changes
to the American-made Xerox PPC to the development cf a domestic original
product.
As a result, there are a number of energy-saving PPC types beginn3ng with the
development of a 40-sheets/minute high-speed PPC "Xerox 3500" capable of oper-
ating on houaehold 100-volt, 15-amp current, followed by the 32-sheets/minute
"Xerox 3402," the "Xerox 4800," and the Xerox 2350" with two-stage reduction
capability. These PPC not only have good performance but are also advantageous
in the matter of the two items of cost and ability to be used with ordinary power
sources, which make them appealing products to high-speed PPC users. This com-
pany has now begun to export units to Xerox companies in Europe and the United
States. The Fu3i Xerox popular PPC "Xerox 2300" is now being assembled in the
United States as well as being supplied throughout the world.
i
r
,
~
~ =
, {
I
I
I
,..,oi ~
~k I
i
~ z
5 ~ 52 53 54 55 ) I
Figure 14. Sales by Fu3i Xerox (All OA-Related Equipment)
Key to Figure 14:
1. (100 million yen) 2. (FY) 76, 77, 78, 79, 80
Table 23. Sales by Fuji Xerox (Unit: 100 Million Yen)
i -
' , da4051~ 909.0 97.2 ~ 41.1
_ . ' . _ . _ . _ _ -
'h-----
I llpfiAS2~ 1,018.9 ~ 144.5 53.4
- - -
~~QS33F 1,213.4 ~ 164.9 61.6
- ~t 6A~151~ 1,408.1 1 163.6 68.4._
~ ~f{p~y~t_ 1.SA7 1 i 178.0 . __+..__10.!
Key to Table 23:
l. Account year 4. Net profit 7. I'Y-78
2. Salea S. FY-76 8. FY-79
3. Working prof it 6. FY-77 9. FY-80
64
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030028-3
~ FOR OFFICIAL USE ONI.Y .
- The "Xerox 9200," which is a high-speed PPC for centralized copy treatment use,
has been performing well with essentially no other competitor in sight. At the
same time, it handles such large volumes that there is very great effect on
profits, so that it has become the dollar coffer for the American Rerox Company.
This same unit is also performing well in Japan and is a valuable product.
The medium-speed "Telecopier 485" and the high-speed "Telecopier 490" are the
- main items in the area of facsimiles, and the "Telecopier 485" is being exported
to Europe.
In addition, F~j i Xerox is establishing sales companies throughout the country
with ~oint subscriptions from inf luential local enterprises; already 25 such
companies have started sales.
Canon: Aims at developing OA as an independent business area through developing
abundant OA products
Canon puts out a varied array of OA-related products. Some of the ma~or products
include reproduction equipment, office computere, desktop computers, laser beam
printers, Japanese word processora and business facsimiles. The total sales of
these equipment are listed in the table below as OA equipment sales by this com-
pany.
i
~ 1
~ ~,~~~1
I 2,500
~
I
2,000 i
2
7Et~ I
~
I,500
i
I
i,ouo 3
0 A M!!1'fi.~*
I
500 I
U ~ , I
SI 5! 5] .,1 55 (f~/j) i
I
~
- Figure 15. Total Sales and OA Equipment Sales of Canon
Key:
1. (100 million yen) 3. OA equipment sales
2. Total sales 4. FY-76, 77, 78, 79, 80
65
FOR OFFIC[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007102109: CIA-RDP82-00850R000500030028-3
N�uH c~M~r�iciAt. u~H; oNt,v
Table 24. Sales of Canon (Unit: 100 Million Yen)
BH~t151~ ~ 1,019.7 I 14.4 36.0 i 230.0 ;
98~t151~ ~ I,239.9~ 99.2 59.8 285.6 ~
~~t!!~~ I I, 369 .6 ~ I I6.5 14.6~ 322. 4;
9g~y4~ ~ I,874.7~ 185.9 I 13.3 458.4 ~
~
] i8~L5S$ ; 2,/07.5 ~ 25l.0 1U .4 865.~
Key:
1. Account year 6. FY-76
2. Total sales 7. FY-77
~ 3. Working profit 8. FY-78
4. Net profit 9. FY-79
5. Reproduction equipment sales 10. FY-80
If we consider OA from an even broader view-point, desk calculators, microfilm
equipment and electronic Kanji dictionary have to be included. Canon is a
leading maker of desk calculators, and including this item under the sales total
of OA equipment makes this sum slightly in excess of 100 b illion yen by adding
the calculator sales total of 'L3.3 billion y~n for FY-79 and 27.2 billion attained
in FY-80. Canon's businese is split nearly equally between photographic equipment
and business equipment (OA related), and it is proceeding with balanced growth
between these two areas.
The list of Canon's OA-related equipment is large, but its main strength is in
reproduction equipment, which account for 56 percent of the total sales in
business equ ipment related areas. This is an important toehold in the OA
department. The advent of Canon PPC sales in 1970 was this country's f irst
competitor to the Xerox machine where reproduction technology was concerned.
By producing and developing PPC, this company has developed enormous influential
strength in the business machines market~
The company points to computers and laster beam printers as important future
products wh icn will become valuable system equipment, and it is putting great
_ effort in these products and the establishment of their sales network. The two
dau~ht~r companies, Canon Sales and Canon Electronics, were formed simultane-
ously ~n 24 August to make their appearance in the Second Stock Exchange. This
was the first occasior. in which sibling companies made applications to the Stock
I:xchange simultaneou::?y and were accepced the same day. Although this is an
episode reflecting the strength of these two companies, it is also a reflection
of Canon's strength. Canon Sales is expected to double over thQ next S years,
snd ir is pointing toward expanding the sales department wt~tch deals with office
computers, facsimiles, word processors and laser beam print.:rs and making the
department an independent campany.
- Canon is also putting great effort into its production strongholds for these
i.tems of OA equipment: it has made ira Toride plant in Ibaraki Pt~efecture the
main plant Eor reproduction equipmen~. production by expanding the plant. It
66
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030028-3
FOR OFFICiAL USE ONLY ` ~
also established ite Ami plant, which mainly produces desk calculators and similar
equipment, at Ami, also in Ibaraki Prefecture. It also has its Ueno plan~ for
production of PPC use toners and drums at Ueno in Mie Prefecture, and all of
these plants have been completed between the spring and fall of this qear.
Expansion is taking place in Canon's overseas planta as well: plant expansions
are underway at the Giessen plant in Weat Germany and Canon Business Machines~
in the United States. In addition, Copia (its sales department became in3e~pen-
dent Copia Sales), which came under the umbrella of ~:anon 2 years ago, has
established a cooperative system in both production and sales aad has proven to
be a powerful strategic strength.
Some princpal OA products of Canon are the high-speed "NP-400 RB with a speed
of 40 sheets/minute, the super-highspeed "NP-8500," with a speed of 77 sheets/
minute, as the PPC "NP series" representative products, the Japanese word
processor "CANONWORD 55," the office computer "CANONAC 71R," the high-speed
facsimile which can transmit enlarged or reduced copies "CANON Teleflex B401,"
and the laser beam printer "LBP-lOSK."
Sharp: All-out in New Business Direction
Sharp is adopting the OA concept as "new business." This is a manifestation of
the need to come out with a rapid, creative,h~gh-productivity system to develop
th~ capacity to win out in this industrial battle. In order to realize this
goal, it has set up the two standards of "PRESTO Office" on the hardware front
and the "CREATE Human" on the software front.
"PRESTO" consists of six elements designed to speed office operations, and it was
coined from the initial letters of these elements: paper, record, energy, space,
time and organiz~tion. This words means "rapid" in Italian.
- At the same time, "CREATE" represents the six elements designed to turn man to
creative efforts and is comprised of the firEt letters of comfortable, reliable,
easily, active, taste and expert. ~
Sharp's OA equipment incorporat~e8 many man-oriented features. In addition, in
contrast to OA Sharp has classif.ied desk calculatora, personal computers and
electronic [ranslators, which are deeply tied in with individual use, as PA
~ (personal automation) equ�pment and given them a special niche.
Some itema of Sharp's OA equipment are the office computer "HAYAC series,'" the
.Tapanese word pro~easor "Shoin," the reproduction equipment "SF series," and
- the facsimile "FO se:ies."
' The weight of OA equipment with respect to total ssles is 12-13 pescnet, which
is small, but this is the result of great sales atrengths in other areas such
as household electrical uni*.s. ThE total sales of OA equipment exceeds 60
billion yen. The total sales of the industrial equipment sales headquarters
which deals with OA equip~eent and PA equipment was 132.5 billion yen. There
is already an active export of PPC, and export of office computers to the West
has been growing this year.
67
' F()R OFF7CIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
� N'UK UN'N'1('IAI. U~h: UNLY
Where domestic eales are concerned, Sharp Business, which was formed a year ago,
is.targeting sales expansion of 20 percent or more. This company was formed in
- December 1980 through the ama.lgamation of the regional business equipment sales
companies.
At present, it has 17,000 SBD (Sharp Business Dealer) type affiliated stores
throughout the country and plans ca11 for expansion to 33,500 stores by FY-E2.
i
c~tw~
5,000
1,000
3, 000 .
2,000
3
I ,000 0 A UlM7~~~
500
0 4
St 52 53 SO 55 (~f~)
Figure 16. Total Sales and OA Equipment Salea of Sharp
Key to Figure 16:
1. (100 million yen) 3. OA-related sales
2. Total eales 4. (FY) 76, 77, 78, .79, 80
Table 25. Total Sales of Sharp (Unit: 100 Million Yen)
' ~ -
r, I~#0l1~ 2,850.5 106.4 57.6 728.0 ;
B~1~S2$ 3,007.8 130.6 74.5 905.7 ~
- ~ti ~~ill7~ 3,396.4 ~ 165.3 86.5 1,123.7 ~
'1 ~~(IS~~F 3,952.5 235.8 125.3 1,333.4 '
I ~ ~!JtISS~ 5,014.0 - 192.t 182.9 1,718,3
[Key on following page]
68
FOR OFF[CIAL USE ONLY`
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
FOR OFFICIAL USE ONLY
Key to 7'ub1~ 25:
1. Account year 6. FY-76
2. Total sales. 7. FY-77
3. Operating profit 8. FY-78
4. Net prof it 9� FY-79
5. Sales of OA equipment and 10. FY-80
electronic parts
Minolta Camera: Rapid PPC Growth with MT Mode ,
Minolta Camera had sales of 52.5 billion yen in off ice equipment and special
equipment, the greater part of which came from reproduction equipment, and what
may be termed OA equipment such as computer-related items were lim~ted to micro-
film equipment besides PPC. This is an unusual case in the midst of this OA age
when most of the makers are coming out with an increasing variety of OA products.
With the smooth growth in its PPC, this company is undergoing a rapid increase
in exports, headed by the OEM supply to IBM in the United States. There was a
77-percent increase over the previous year in exports of business equipment and
specialty equipment during FY-80.
The event which enabled Minolta Camera, which had been far behind in its PPC
development, to enjoy such good growth was Che development of a microparticle
carrier reproduction method based on an MT (microtoning) mode and its use in the
popular PPC "EP-310." The clear copies made by this product were well accepted,
and there was a sharp increase in exports from the outset.
Furthermore, the "EP-310" drew IBM's attention, and as soon as Minolta Camera
began the OEM export of this product to IBM, the evaluation of the MT mode rose
one notch higher.
In good timing with this situation, Minolta Camera constructed a new PPC produc-
tion plant and designated this new Mizuho plant the main plant for mass produc-
tion of its "EP series," while it changed the existing Mikawa plant (renamed from
the Toyokawa BM plant) into a productic,n plant f or small-volume lot products.
In addition, it sensed the need to increase production of consumable items, and
it is expanding its Itami plant to this end.
The Mizuho plant, where.a mass production was possible starting this July,
produces 11,OU0 units of 2 main models, EP 310 and EP 320, per month, and 17,000
units if including 4 other models, EP 520, new EP 530 and EP 530R, and console-
type EP 710.
The company has also developed another OA product in the form of the general-
use multifunctional printer "Minolta EG 30," [Intelligent Copier] which was
announced last fall. Thia inatrument is baeed on the static electricity latent
image reproduction mode duplicator 1�EG 301" and exploits its image reprod+uction
mode. It incorporates a high-performance multistylus head (needle electrodes)
which is equipped with general prinCing capabilities. It can superimpose soft
copies written in by electric signals on originals, and can be utilized as print
mechanisms for a number of systems.
69
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034028-3
FOR OFFI('IAI. USE ONLY
Some of its features are: the print mode is a very compact no-impact mode, there
is essentially no printing noise and it is very silent.
Minvlta is actively developing the applications area of these duplicators and
has developed a no-impact lable printer "BLIP 103" and a high-speed address label
printer "AP-T."
i
(1f.P3 )I
2
50 p A I~S~L~~i
~ SA 55 ( $ )
51 52 53
Figure 17. Total Salea and OA Equipment Sales of Minolta Camera
Key to Figure 17:
1. (100 million yen) 3. OA equipment sales
2. Total sales 4. (FY) 76, 77, 78, 79, 80
Table 26. Tota1 Sales of Minolta Camera (Unit: 100 Million Yen)
F 6a~i151 ~ 528. 6 26.0 I4.9 I 41.0
@p~5p$ 105.4 10.2 20.8 188.4
R~#C53~ 836.3 56.0 24.3 234.4
l~~t154~ 856.7 46.0 25.2 32).7
1~~!(~1b6~ 1,158.! ~ 92.1 15.1 525.1
-1
Key:
1. Account year 6. FY-76
2. Total sales 7� FY-77
3. Operating profit 8. ~-78 ~
4. Net profit 9. FY-79
5. Business equipment, special 10. FY-80
equipment sales
Konishiroku Photographic Industry: Aime at 15-Percent Share by Ubics
Konishiroku Photographic Industry has compiled a traditi~n as a maker in the
image teclmology area which has specialized in photographic f ilm and printing
70
FOR OFFIC[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030028-3
NOR ONN'I('IA1. I1tiN: ONI.Y
paper, and it is therefore taking a determined look at the quality of copy
- reproduction in the area of reproduction technology. Its "Ubics" (with superior
copy quality) was boxr~ from such a background.
Konishiroku's bas~c position is also the same with regard to OA products. It is
engaged in development of the output areas such as a no-impact printer and an
intelligent copier. Next, it proposes to develop OA systems to exploit these
items of equipment by combining them with computer and communication technology.
As a result, the present OA product situation of this company is such that the
Ubics PPC accounts for the greater part of the business.
The "Ubics" has survived a full 10 years in the market since its first introduc-
tion in 1971. It is bein~ exported to Europe and the United StatPS in great
numbers. It now has roughly 10-12 percent of the world's PPC market.
Konishiroku is planning to increase its share of the world market to 15 percent
within the next 5 years. As one phase of this policy, the sales base Konishiroku
Ubics signed a sales agreement with Plus for sales in the domestic market. It is
considered necessary to expand its eales routes and number of sales outlets in
- order to attain a 15-percent share of the market, and this company plans to sell
its "Ubics" at the roughly 3,000 stationary storea which Plus maintaine through-
out the country and hopes to achieve a 6,000-unit increase in sales per year.
On the product front, the "Ubics V" is proving to be a great hit in the United
States; and it is a PPC of atable quality. The "Ubics V2," which is even further
_ improved, has appeared on the domestic market, and the "Ubics 3000" and "Ubics
3000 F" with semidocument feeder attachment which appeared in July are becoming
this company's main sales items.
- The developer has been improved starting with this "Ubics 3000 series," and copy
_ ~uality has been greatly improved by measures to increase the static electric
retention property of the carrier.
i
c itt~~ ~
z,ooo
I,500
~
~E~*
I,000
~
! S00 ~ g
- ~ o ~neri~e~.*
~
! o. ~ ~ ~ ~ ~(~f~)
~
i
Figure 18. Total Sales and OA Equipment Sales of
Konishiroku Photographic Industry
[Key on following page] 71
FOR OFFIC[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030028-3
ruK urrtLlAL U~~ UNLY
Key to Figure 18:
1. (100 million yen) 3. OA equipment sales
2. Total sales 4. (FY) 76, 77, 78, 79, 80
Table 27. Total Sales of Konishiroku Photographic Industry
~~051~ 1,266.8 121.4 53.8 ~ 286.9 ~
7 oA~s2$ I,324.5 - I 12.0 ~ 51. 8 305.0 I
tt ~ I~~t157$ I,432.7 _ 124.6 r-- 59_0 360.
4
~ ial~tls4l~ I, 690.0 102.4 I 41.3 416. 7 ~
~ - -1----
1~ I~~1AS5$ 1,816.1 142./1~ _ 67.1 /99.0 '
Key to Table 27:
1. Account year 6. FY-76 ~
2. Total sales 7. FY-77
3. Operating prof it 8. FY-78
4. Net profit 9. FY-79
5. Electronic duplicating area 10. FY-80
sales
Matsushita Electric Group: Reinforces Unity with "OA Conference"
Matsushita Electr{c Induetrial is trying to cope with the OA era with its total
energy together with its daughter companies, Matsushita Communication Industry
and Matsushita Electrical Transmisaion Equipment.
A concrete display of thia eff ort ie the "OA conference" started thia apring
in which f ive members--President Yamashita of Matsushita Electric Industrial,
- Director Nakai (head of the special equipment sales headquarters), Director
Hayakawa (director of technology headquarters and director of central laboratory),
President Ogama of Matsushita Co~onunication Industry, and President Kino of
Matsushita Electrical Transmission Equipment--meet at stated monthly intervals
to establish overall policy on OA industry problems.
The suborganizations of this OA conference include a technolo~;y development com-
mittee, comprehensive design committee, public relations committee and OA promo-
- tion committee which are assigned to conduct the necessary functions to promote
OA industry for the entire Matsushita group. Mataushita Electric Industrial and
the group companies each has its own development organs and plans staff, and
these have been plannin~ industrial expansion as part of their individual
responsibilities. However, this would make for poor investment eff iciency, and
- the group efforts could not be properly coordinated. So they are trying to hammer
out an OA area policy under the leadership of Mataushita Electric Industrial, and
to develop OA as a new pillar enzerprise.
~ The basic liite of thinking with regard to OA on the part of the Matsushita
Electric Industrial group is that "true OA is OA which brings forth creativity
in the office with respect for man," and it seeks to attain all-out mechanization
72
FOR OFFIC[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044500030028-3
FOR OFFICIAL USE ONLY
of those daily office routines which can be mechanized, and to improve the over-
all eff iciency of the business and management areas by a smooth operation of
information treatment, storage and retrieval and communication. It further
seeks the use of the extra time provided by the mechanization efforts for creative
activities which make more effective use of a man's time as well as seeking td
provide a more pleasant working environment. In this manner, it seeks to make__:,
the functioning of the working man more human and to create an ideal off ice
environment where full activity takes place. This is the concept in a nutshell.
The following is the OA equipment which the Matsushita Electric Industrial group
handles aceording to maker: Mutsushita Electric Industrial: PPC, office com-
puter, HHC; Matsushita Communication Induetry: off ice computer, word processors;
Matsushita Electrical Transmission Equipment: facsimiles, word processors;
Mataushita Industrial Equipment: gasoline POS; Kyushu Matsuehita Electric
Industrial: color slide production equipment, ahredder; and Panafacom: personal
computer.
All these items of OA equipment are marketed in Japan through the Matsushita
Electric Industrial special equipment industry headquarters. Total salea were
about 44 billion yen in FY-80 and accounted for one-twelfth of the total sales of
this apecial equipment industry headquarters. The main items in this category
were the facsimile of Matsushita Electrical Transmission Equipment and the off ice
computer of Matsushita Communication Industry. A sales total of 70 billion yen
is targeted for this year; efforts will be directed at improving the sales
records of the PPC and off ice computer produced by Ma.tsushita Electric Industrial.
_ The following charts show all the facsimile related sales included under the
OA sales total, but the sales of Matsushita Communication Industry are not dif-
ferentiated from the electronic equipment area, and this total includes elec-
tronic measurement equipment, control equipment, desk calculators and a number
of other products.
I- 1 _
I (iRl'i)I
i,5nu i
z ~
i
i,ooo
0 A Q!~!
500 ~=~IRlSffir7)'1~~~
~_L ~ 4
51 52 53 54 55 (~fX)
rigure ].9. Total Sales and OA Equipment Salea of
Mataushita Electric Industrial
[Key on following pageJ
73
FOR OFFICIAL USF. ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
FOR OFFICIAL USE ONLY
Key to Figure 19:
1. (100 million yen) 3. OA-related sales (electronic
2. Total sales equipment)
4. (FY) 76, 77, 78, 79, 80
~F~~!lI~.M~.~~ l~_-:�~oArlk~l~if~f1___--
1 - - - -
(1Lf~11
300
200
100
0 2
51 52 53 54 55 ($J~)
Figure 20. Salea of Matsushita Electric Industrial
(All OA-Related Equipment)
- Key to Figure 20:
1. (100 million yen) 2. (FY) 76, 77, 78, 79, 80
Table 28. Sales of Matsushita Electric Industrial
(Unit: 100 Million Yen)
6 ~~SI~F 13,106.3 841.6 413.3
8 1~1~t133~ 14,345.2 --976.8.- 486.1
7 I~~p53~ 15,980.8 - ---I ,032.7 568.5~
B.~f~p5~#. - -17, 344.6 1.166.6 655.2
~~pS6$, --10,153.0 1.7A2.3 _ 731.5 ~
Key to Table 28:
1. Account year 6�
2. Total sales ~'78 ~
3. Operating prof it 8� ~-~9
4. Net prof it 9� ~'80
5. FY-76
Table 29. Sales of Matsushita ComQULnication Industrial
(Unit: 100 Million Yen)
laf+p~1l� 853.5 63.1 28.3 i73.1
igf~py2lF 946.6 64.6 ~ 33.1 183,5
,~i~pS~~ 1,082 9 76.5 31.1 v200.1
ip{06~~. 1,282.0 113.1 52.1 265.9
1, ~~ill5~t 1.I1S.t `----159.6 15.5 330.8 ~ .
[Key on following pageJ
. 74
NOR OFF[CIAL IrSE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
FOR OF~ICIAL USE ONLY
Key to Table 29:
1. Account year 6. FY-76
2. Total sales 7�
3. Operating profit 8. FY-78
- 4. Net profit 9. FY-79
5. Electronic equipment related 10. FY-80
sales
Table 30. Sales of Matsushita Communication Equipment
(Unit: 100 Million Yen)
8 ~~?i1$ 106.9 10.1 5.0
~ 8~. ~~52~,. 136.6 1~.8 7.0
7~~l7~ 1, 177 . t- 17.7~ 9.8
~~IISI~ _213.1 _28.0 11.1
....~*1i5~ lS7.f 2~.0 12.1 _
Key to Table 30:
1. Account year 6� FY-77
2. Tota2 ~ales 7�
3. Operating profit 8. FY-79
4. Net prof it 9. FY-80
5. FY-76
At the same time, the Matsushita Electric Industrial group has established OA
centers in Osaka and Tokyo as one phase of its OA industry promotion, and these
showrooms are ~ointly occupied by related businesses (mainly sales companiea).
This setup has brought favorable results to both publicity and sales records of
Matsushita group, and plans are being readied to open many more OA centers in
other major cities.
Tokyo Electric: Exploit Strength of Close Relationship with Financial Industrq
Tokyo Electric is one of the satellite companies of Toshiba and has been active
in a busineas with strength directed at f inancial equipment such as POS and
registers. That is why the weight of the sales of this company differs greatly
in the display of its scale in the OA industry depending on whether or not sales
in the register area are considered as part of OA.
According to its financial report for FY-80, the main line of equipment accounted
for more than 60 percent of the sales. A more detailed breakdawn showed regis-
ters accounting for 27 percent, measurement equipment for 5 percent, office com-
puter type information equipment related area for 3 percent and the rest for 25
percent, to make up this 60 pe:cent.
As a result, when taken on a rough estimate, about 60 percent of the gross or
50.7 billion yen in sales was accounted for by OA eales, and this was 3 percent
or 2.5 billion yen where office computer was concerned. Now, in addition Tokyo
Electric has other equipment such as printers for computers and online window
75
FOR OFFICIAL US; ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030028-3
N'UK ()N'M'I('IAI. USE ONLY
terminal equipment for post office use which it lists under "other equipment,"
and if these are also included, the estimate becom~s 17 billion yen or an ~
~ increase of roughly 70 percent over the preceding year's sales.
The sales of printers for computer use of Tokyo Electric have increased sharply,
as described above. This is an area where ma3or effort has been directed since
FY-79. Riding on the wave of rapid growth created by off ice computer and per-
sonal computers, sales were increased from 2.4 billion yen in FY-79 to almost
three times as mucll, or 7 billion yen, in FY-80, and the company expects to
double this total to 14 billion yen this fiscal year. The company constructed
a plant solely for printer production at its Oohito Oni plant in Shizuoka Pre-
fecture and also expanded its lines at Mishima to establish a greatly expanded
production system. Thus, the company is making its effort to promote this new
popular product.
Along camputer related lines, Tokyo Electric is showing good sales performance
for its independently developed office computer and personal computers besides
the Toshiba line. This computer exploits the expert knowledge of the financial
world by this company, and its personal computer "Maitec T 555-20 series" can
be altered to a POS depending on the terminal system.
Tokyo Electric entered into a sales agreement with Kokuyo this spring on the
"Maitec T 550-20 series," and this event clearly displayed the reinforced agree-
ment relationship between Toshiba and Kokuyo in the OA area.
1 -
i+~ITI)
I,000
�
500 0 AHl33(H!$"s4ft~1):~_~7~ 4
~ ~iNAQM!$#
o ~ - -
51 52 S.i 54 55 it
rigure 21. Total Sales and OA Equipment Sales of Tokyo Electric
Key:
l. (100 mil.lion yen) 4. Part accounted for by informa-
2. Total sales tion equipment
3. OA equipment (instrument area) 5. (FY) 76, 77, 78, 79, 80
sales
Uchida Yoko: OA Door Opened by DOA
Uc}~ida Yoko considers OA to be an overall office problem, and it has proposed
"DOA" (desi~n and office automation) as a concept which envelops OA. This term
incorporates the feeling of an "OA door."
76
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030028-3
FOR nFM1C?IA1, l1fiE ONI.Y '
Table 31. Sales of Tokyo Electric (Uait: 100 Million Yen)
~ a ,
6iq;QS1~ 555.2 28.9 I 12.0 293.9
-
'~8~fA5I$ 582.3 21.1 11.7 31a.5
~l~~ps3~ 60~.SJ 27.5 ~ 12.8 326.7
. . ~ _ . _ - _
~Bg~IS~} 125.4 13.8 2~.0 397.2 .
L~198#~1li~ 1/~.! 1~.2 ~ 2~.6 6Q.i
Keq:
1. A~ccount year 6. FY-76
2. Total sales 7�
3. Working profit 8. FY-78
4. Net prof it 9� ~-79
5. Equipment sales 10. FY-80
DOA takes in three concepts--1) design sutomation, 2) office automation, and
3) office design--in an all-inclusive manner to cover all the elements necessary
to OA directed toward reaearch and development staff, OA for general pure office
work and creation of pleaeant of f ice environment . For Uchida Yoko, which covers
the entire OA area including buainess equipment, steel furniture, educational
equipment and computers, this appears to be a goal that can be attained.
Its design sutomation is what is generally termed CAD "camputer sided design."
It is a system that enables a designer to manipulate two- or three-dimensional
graphics simply, accurately and rapidly based on_a small amount of data. The
instrument used here is the high technology calculation personal-use computer
- which is combined with a digitalizer as input component and an %Y plotter as
output component. .
The off ice automation units which comprise Uchida Yoko's DOA point toward a
future work statian which is a computer terminal with all types of capabilities
encompassed within its network. At present, it has the single capabilf.ties of
a word processor and facsimiles it will gradually increase its capabilities as
a computer is installed.
Office design is the creation of a pleasant working environment for people, who
make up the single moat important entity of an office. Uchida Yoko considere'
that off ice design is an important constituent of OA because the preparation of
- an environment in which OA equipment can be fully exploited and man can fully
express hia inherent creativity is an essential element in the development of
OA. ~
According to the DOA cancept, almoet all oE Uchida Yoko's eales will be OA
related, but here only the computer-related sales which may be thought to repre-
- sent the sales of the central nucleus were extracted to portray the_trends of
the camputer industry departmeat.
Uchidg Yoko sells three original brands of computers--the brand "Uzac," "Seiko"
and "Facom." The sales of th~se computers are: "Uzac," 58 percent; "Seiko,"
77
FO~t, OFF7CfAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
N'UK Uh'N'il:lAL U5~ UNLY
- 22 percetit; and "Facom," 10 percent; however, only the sales margin of "Facom"
is included here. .
The Uchida microcomputer school was set up in July, and the company plans to
develop a nationwide franchise chain of persona.l computer classrooms.
_ Table 32. Total Sales of Uchida Yoko
(Unit: 100 Million Yen)
~~IISI~ 125.3 6.5 3.9 72.3 247.2
~~p~$ 461 7 ^7.1 5.3 ~ 72.6 27I.;
~~p~~'i 529.8 14.6 6.0 91.8 305.~
1~/a~pK~ 622.3 22.9 9.8 101.6 352.7
7 1 I~~Ol6~ 121.9 2l.S - 12.1 _ 136.1 _~7f1,2J
Key to Table 32:
1. Account year 7� FY-76
2. Total sales 8�
3. Working prof it 9� FY-7$
4. Net prof it 10. FY-79
5. Computer industry sales 11. FY-80
6. Business equipment sales
L
'(1~F1)
I
~ 750
2
/
I 500
I I
~
~ 250 0 A IR!l~~~
0 . ~ ' ~
i4 5
I 51 52 53 51 55 56('F:a) (~J!)
I -
Figure 22. Total Sales snd OA Equipment Sales of Uchida Yoko ~
Key to Figure 22:
1. (100 million yen) 4. Estimated
2. Total sales 5. (FY) 76, 77, 78, 79, 80, 81
~ 3. OA equipment sales
Casio Calculator: Hope To Expand System Equipment ~
Casio Calculator is a company which was eatablished with the ob~ective of develop-
ing relay-type calculators, which may be considered to be the infant model of
78
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3
Fnl2 ()N'FI('IA1. II~H; ()NI.Y
computera. This technology gave rise to the desk calculatora, and this company
soon became the top maker in the f ieJ.d. The company also announced its Kanji
office computer "E-8700 series" 2 years ago and opened the way for the age of
Japanese language processing.
The desk calculator accounts for more than half of the total sales of this com-
pany, and this f igure rises to over 90 percent if sales of the electronic watch
department are included. Although its computer department makes up only 10 per-
cent of this company, its growth since the advent of Kan3i off ice computer has,:
been spectacular. When this company's damestic business system was revised in
January this year, reflecting the arrival of the OA age, this department was
made one of the main pillars. This change divided this computer department into
two: the "Digital Equipment Sales Department" which ~ells desk calculators and
electronic watches which account for more than 90 percent of the tota~ sales,
and the "Sy~tem Equipment Business Department" which sells office computer.
This shows the company's solid resolution to promote office computer.
In May this year, Casio Calculator started to sell its small business computer
"E-7 series" which is designed for econ~~my. This is advertised as a desktop
type full-fledge business computer which uses the sam.e type hardware and soft-
ware as off ice computer, and it is provided with a package program which is
pointed toward gasoline station use.
In the area of facsimiles, in addition to its self -developed "Casio FAX 2000
series," it hae the series of inedium-speed to high-speed units which this com-
pany developed in cooperation with Hitachi Limited, giving this companq an
abundant array of equipment.
A Japanese word processor "Casio WP-1" was displayed at the business show held in
May this year. This unit can use any of 3 input modes: 1) the self-developed
Casio page tablet mode, 2) the Kana-Kan~i interchangeable mode, and 3) the JIS 4
digit code input mode. Provisions have been made for the user to select which-
ever input mode he desires.
There has been talk that ttiis company is to start development on plain paper
copier, and it appears to be ready to go into all-out involvement in system
- equipment in readiness for the OA age.
Part III. Semiconductor Industry
[Article by computer/semiconductor ~ournaliat Tomio Uchida: "Real Strength
Dia~;nosis of Japan's Top Semiconductor Companies"]
(Textj The Japanese semiconductor IC induatry, which the phrase "a pleasant
voyage with a favoring wind at the back" fits almost perfectly, while presently
undergoing a temporary cloudy situation as the result of unfavorable domestic and
foreign market environment, is still flourishing greatly as a basic industry for
the 1980's decade. Each of the top makers of semiconductor is a part of a leading
electronics company and is vertically integrated into the parent company. Thus,
they possess unique overall strength (capital, developmental technology, mass
production, manpower resources7 not seen in foreign competitive makers, and
are promoting a large-scale international market strategy.
79
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030028-3

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030028-3
FOR ONFICIAI, l1tiE ONI.Y
i ~
ct~~)
z,ooo
i , soo
a
I
i , oao
~ I
~ o n 1Rt3~.~Af
500 ~
_ I
� ~ 4
51 52 53 54 55 (~t~)
Figure 23. Total Sales and OA Equipment Sales of
Casio Calculator
Key: to Figure 23:
1. (100 million yen) 3. OA equipment sales
2. Total sales 4. (FY) 76, 77, 78, 79, 80
_ Table 33. Total Sales of Casio Calculator
(Unit: 100 Million Yen)
-
~~Sl~ 545.6 i 24.3 15.0 I Sd.O ~
. .
W~~54~E 530-s ----~A-~ I----;3 I ~ '
t~ BH~S~~ 809.4 ~ 62.0 --""-28.1 67-~. {
`-~IB~
~s 1,036.4 I 85.8 38.3 i 100.1 ;
1� i Il~~fl!S+~` 1.570. 1~- - 106.1 I /8.7 I 115. 3 ~
Key t