FOR IMMEDIATE RELEASEFANUC, Hitachi, and Preferred Networks to establish a joint venturecompany for the development of Intelligent Edge Systems
Tokyo, Japan, January 31, 2018 --- FANUC CORPORATION (TSE: 6594, “FANUC”),
Hitachi, Ltd. (TSE:6501, “Hitachi”), and Preferred Networks, Inc. (“PFN”) today
announced that they have reached an agreement to establish a joint venture company(the “new company”) on April 2, 2018, to develop Intelligent Edge Systems(1) that utilize
artificial intelligence (AI) technologies in edge devices in the industrial and social
infrastructure field. Yutaka Saito, who is currently Executive Vice President andExecutive Officer at Hitachi, and who will be appointed Senior Executive Vice President
at FANUC on April 1, will hold a concurrent position as CEO of the new company(2).
(1) Intelligent Edge Systems: Systems that use AI as an intermediary between the Cloud and edge devices suchas machine tools, industrial machinery, and robots to achieve cyclic, real-time control(2) Yutaka Saito is scheduled to resign as Executive Vice President at Hitachi on March 31.

In recent years, innovations using AI technologies have been expanding rapidly in a varietyof fields. In the field of industrial and social infrastructures in particular, AI technologies areexpected to play an important role in the part close to edge devices, for example in the caseof vehicles and robots.
In this backdrop, FANUC, Hitachi, and PFN have agreed to undertake joint development of
the world’s most advanced Intelligent Edge Systems in the industrial and social
infrastructure field, and to establish a joint venture company for that purpose. The newcompany will develop these Intelligent Edge Systems by combining FANUC’s technologies
and expertise in machine tools and robots, Hitachi’s knowledge of control technologies andother aspects of OT and IT in the front lines of manufacturing, and PFN’s deep learning anddistributed computing technologies. After establishing a joint venture company, the threecompanies will test business potential and create business plans, and then undertake actualsystem development and expand application fields.
Through the new company’s activities, FANUC, Hitachi, and PFN will develop Intelligent
Edge Systems and other next-generation control systems as part of efforts to promotecollaborative creation aimed at the realization of Society 5.0(3).
(3) A human-centered society that balances economic advancement with the resolution of social problems by asystem that highly integrates cyberspace and physical space.

- more --2-Comment from Yoshiharu Inaba, Representative Member of the Board, Chairman andCEO of FANUC“FANUC is planning to continue investing efforts into the development of FIELD systems as
part of its activities targeting IoT. We believe that the activities of the joint venture company,as it strives to achieve faster, cyclic, real-time control, will have a positive effect on thesedevelopment activities. As a company that has specialized in the field of factory automation,
we will respond quickly and flexibly to the rapid introduction of IoT in the manufacturingindustry, and continue to contribute to the growth and development of this industry in thefuture. We have great expectations for this joint venture company as a new phase of theseactivities.”
Comment from Toshiaki Higashihara, President and CEO of Hitachi“It is a great honor to work with FANUC and PFN in establishing this joint venture company.
Through the Social Innovation Business, where we combine knowledge and expertise
accumulated through more than 100 years of experience in OT and more than 50 years inIT, Hitachi strives to resolve issues faced by society, and achieve safer, more secure, andmore comfortable lifestyles for everyone. Now, by merging the strengths of these threecompanies, we will develop and offer the world’s most advanced Intelligent Edge Systems,
to contribute to advancements in the field of industrial and social infrastructures.”
Comment from Toru Nishikawa, President & CEO of Preferred Networks“I am very pleased that we are able to begin these new activities so soon after theannouncement of our capital tie-up with Hitachi in December of last year. PFN entered acapital tie-up with FANUC in 2015, and since then, we have been working together to create
innovative manufacturing bases where machine learning and deep learning technologies
are used to establish intelligent links between machine tools, robots, and other devices.
Now, by establishing this joint venture company, our three companies will accelerate thedevelopment and provision of innovative technologies that leverage each of our respective
specialty fields, to further advance this trend on a global scale.”
Outline of the joint venture company (Plan)
Corporate NameIntelligent Edge System, LLC
Capital30 million yen
Investments
FANUC: 10 million yen; Hitachi: 10 million yen;
PFN: 10 million yen
CEOYutaka Saito
Head Office3580, Shibokusa Aza-Komanba, Oshino-mura, Minamitsurugun, Yamanashi Prefecture, Japan
Established
April 2, 2018
Outline of Business Conceptual testing and development of Intelligent Edge
Systems- more --3-About FANUC CORPORATIONFANUC CORPORATION, headquartered at the foot of Mt. Fuji, Japan, is the global
leader and the most innovative manufacturer of FA, ROBOT and ROBOMACHINE inthe world. More than 260 offices in 45 countries, FANUC provides world-class customer
service and support. Since its inception in 1972, FANUC has contributed to theautomation of machine tools as a pioneer in the development of computer numericalcontrol equipment. FANUC technology has been a leading force in a worldwide
manufacturing revolution, which evolved from the automation of a single machine to theautomation of entire production lines.
For more information visit:
http://www.fanuc.co.jp/eindex.htm.
About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations thatanswer society’s challenges. The company’s consolidated revenues for fiscal 2016(ended March 31, 2017) totaled 9,162.2 billion yen ($81.8 billion). The Hitachi Group is a
global leader in the Social Innovation Business, and it has approximately 304,000
employees worldwide. Through collaborative creation, Hitachi is providing solutions tocustomers in a broad range of sectors, including Power / Energy, Industry / Distribution /Water, Urban Development, and Finance / Government & Public / Healthcare. For more
information on Hitachi, please visit the company's website at http://www.hitachi.com.
About Preferred Networks, Inc.
Preferred Networks, Inc. (PFN, Headquarters: Tokyo, Japan, President and CEO: Toru
Nishikawa) was founded in March 2014 with the aim of promoting business utilization ofdeep learning technology focused on IoT. PFN advocates Edge Heavy Computing as away to handle the enormous amounts of data generated by devices in a distributed andcollaborative manner at the edge of the network, driving innovation in various fields, witha focus on three business areas: transportation, manufacturing, and bio/healthcare. PFN
develops and provides Chainer®, an open source deep learning framework. PFN
promotes advanced initiatives by collaborating with world leading organizations, such as
Toyota Motor Corporation, FANUC CORPORATION, and the National Cancer Center.
https://www.preferred-networks.jp/en/###