The hidden champions of Japanese monozukuri
While Japan has faced increasingly larger competition from the likes of China, South Korea andSoutheast Asia in recent decades, many Japanese SME manufacturers have maintained large
global market shares in B2B markets and nichefields characterized by high-mix, low-volume
production. Working behind the scenes supplying high-quality parts, materials and machinery,these niche companies are the so-called ‘hidden
champions’ of Japanese manufacturing.
Japan may no longer rule the roost when it
comes to end-user electronics products. Nevertheless, materials and components made by
Japanese companies can still be found in popularelectronics devices we use every day. Take, forexample, engineering plastics firm Polyplastics,
which supplies liquid crystal polymer (LCP) usedin the iPhone’s connectors and camera modules.
“We supply the materials that form the frames
and skeletons of electronic components in theupcoming iPhone 13 and 14,” says Polyplastics
CEO Toshio Shiwaku. “As you know, these phones
are starting to support 5G. LCP is used to build
the flexible circuit for 5G, and the LCP is almost
100% supplied by our company.”
When it comes to the manufacturing and assembly of end-user products, the “winners will
be in China or in other emerging countries thatcan do it at a low cost,” says Mr. Shiwaku. “Japan
would not win in that kind of battle because weare not trying to win using manufacturing ofscale, but instead we are trying to be winners
in dealing with this kind of special or highly
functional material used in innovative products.”
Backing up this point, Mototaka Tei, Presidentof SANTEC Corporation – which manufactures
turntable lasers and optical devices – says Japanese companies must focus on quality and cannot compete on price with regional peers. “Whenit comes to quality, I think it is important and we
at Santec do not want to compete on price, so
we have to find other differentiating factors. We
are confident that we cannot win a price war.
We have to go for quality and customer support,
especially in B2B, as customer relationships
are important. We also have imagination andinnovation. We differentiate ourselves with our
vision and invention, not with price.”
Another hidden champion playing a backstage role, INOAC supplies polyurethane, aninsulation material, to clients in the construction, automobiles and clothing industries. “Forexample, a famous fashion brand utilizes ourtechnology. To a large extent, one could saythat while INOAC is not visible, it is playing animportant role from behind the scenes,” says
chairman Soichi Inoue, also highlighting theimportant role INOAC plays in housing and thedevelopment of electric vehicles (EVs).
“While EVs require less mechanical andengine-related parts, they demand a greater
diversity of materials. For example, for batteries to be safe, protective, heat insulation andsound insulation materials are required. Eventires require more insulation. To answer these

new market demands, we are developing more
and more items for the EV market.”
Monozukuri – the Japanese manufacturing
philosophy centered around craftsmanship –continues to set Japanese companies apartfrom regional competitors that have emergedin recent decades. Nobuyuki Soga, Presidentof Fuji Corporation, explains that monozukuri
stems from the nature and traditions of theJapanese people, as well as the nation’s innate
scarcity of natural resources.
“The basis behind the philosophy of Japanesemonozukuri is to create a product that would
not bring feelings of shame when others usethat product, rather than creating somethingthat satisfies your own ego. So that is why
Japanese companies are so particular about
making high-quality products, even small parts
that are not visible from the outside. That is how
Japanese-quality products are created. It is nota type of quality that lasts for a short time, it
lasts for a long time and has the user in mind.
“The natural environment in Japan is harsh,with many earthquakes and a lack of natural
resources, so Japanese people have collaborated
with each other and placed high value on thoseresources. Making the best use of scarce resources is the essence of Japanese monozukuri.”Japan also holds a competitive edge thanks to
its unrivaled expertise in machinery and equipment, a field where monozukuri principles ensure
the superiority of Nippon companies. This is particularly the case in the semiconductor industry.
“The semiconductor industry is growing very
rapidly, and Japan is still considered a strong
player when it comes to auxiliary fields surrounding the sector,” says Hitoshi Nara, president of
Yokogawa, which manufactures measurement
and control systems. “Although the semiconductor industry is centered around Taiwaneseand Korean manufacturers, Japanese firms are
responsible for supplying materials and equipment critical to semiconductor production.”
Mitsukuni Tsukihara, President of Sumitomo
Heavy Industries Ion Technology – which works
in the highly specialized field of ion implanters – shares a similar perspective. “The Japanese are still prevailing in the machinery forsemiconductor production and material field
because compared to device production, these
two fields are more applicable to the Japanesebusiness culture that focuses on monozukuri.
Although the price of machinery may staythe same, the required features become moreadvanced and more high-performance products
are demanded at a rapid pace. Nevertheless,Japanese engineers are excellent at adapting
and being flexible to those changes in demands
and advancements in technology.”
The leading innovator of vacuum technology,
ULVAC, meanwhile, has moved in line withmarket demands, shifting focus from manufacturing equipment for memory semiconductors,
such as NAND and DRAM, to newly emerging
fields. “We have succeeded in entering the logic

semiconductor market with the Metal Hard
Mask process. There are only two companies
that can provide semiconductor sputtering
equipment. One is a major American company
and the other is us,” says president and CEO
Setsuo Iwashita. “In the electronics business,
we offer manufacturing equipment in fiveareas: communications devices, opto-devices,
packaging, electronic components such as
MEMS, and power devices. One of our strengths
is that we have a wide range of products.”
For Kohoku Kogyo, possessing its proprietary,
in-house-developed machinery and equipment
serves as a major advantage for the manufacturer of lead terminals and optical devices. “Weproduce all the equipment and machines to produce lead terminals by ourselves. No company inthe world can do this, and we are a very uniquepresence in that sense,” says president Futoshi
Ishii. “Our ability to develop and manufacture not
only the lead terminals but also the equipment
and machinery needed to produce lead terminals
puts us in a very dominant position. We do havecompetitors in China, Taiwan, and Malaysia, but
obviously, we are a major player in this market,
and those competitors use equipment and machinery that are duplicates and copies of ourolder and more obsolete machinery.”After-sales service is another strong featureof Nippon manufacturers that stems from theJapanese spirit of omotenashi, which means
hospitality and describes the Japanese attitude of being caring and attentive toward
guests. “What is important in manufacturing
is providing the products and service, and there
has to be a balance between the quality of the
product and the after-sales services added on
top. We wish to keep our business growing by
providing this comprehensive solution to ourcustomers,” says Yasushi Kitade, Presidentof Komatsu Industries Corporation, whichmakes pressing machines for the automotive,
construction and home appliance industries.
Komatsu’s commitment to after-sales service has seen it lead the charge in predictive
maintenance solutions using IoT technology.
“Once a customer buys from us, we are in forthe long haul. Our mission is to keep the machines that we are providing for our customers
operating,” adds Mr. Kitade.
While much has been said about the competition Japan faces from China, Korea andSoutheast Asia, it is important to remember thatfruitful collaboration does also exist between
Japanese companies and their neighboring counterparts, as highlighted by Hiroki Tatematsu,
President of TMW. “We understand that we havecompetitors in China or Korea in our tooling business. I think each company’s philosophy depends
on whether they consider them competitors orpartners. Many in our industry would always
try to compete with China and Korea or Southeast Asian countries like Vietnam, Indonesia or
Thailand. On the contrary, TMW looks at themas partners in order to stay in global business.”

Heisen Yoko: The global chemicals
trader with sustainability in its sights
An expert distributor of raw materials for rubber, polyurethane and plastics, Heisen
Yoko is targeting SDGs as it expands its product portfolio.

SIGMASOFT (software)
Heisen Yoko is a major Japanesetrading company that specializes in
distributing chemicals used to manufacture rubber, polyurethane andplastics. An importer and exporter
with over a century of experience,
the firm works as a sales agent forpartner companies worldwide.
“We were founded in 1920 and
first started importing chemicals
for rubber from Bayer in Germany,”
President Denjiro Tobari says. “At
that time, Japanese companies wereusing inorganic chemicals to makerubber, and it took hours. However,with Bayer’s organic chemical, it

only took five or ten minutes – somany companies started to shift toit, and we were the supplier.”
Heisen Yoko – which supplies
chemicals used by industries including electronics, automobile
manufacturing, and construction – also sells products suchas rubber-testing equipment andmolding-simulation software by
SIGMA Engineering.

Food sample (urethane)
What’s more, the company has
a 100%-owned manufacturingsubsidiary, H&K, which produces
polyurethane materials.

“We want to provide
what is required byeach company with thebest of our capabilities
as a trading firm.”
JELLYFISHBOTAs is typical in Japan, a key factor in Heisen Yoko’s success is its
devotion to the principle of kaizen,
or continuous improvement. “Japanese companies are always required
to go through kaizen – they’re reliable and provide the best quality
every time,” Mr. Tobari explains.
Heisen Yoko is also dedicated toachieving a greener future, with thecompany now operating an SDGfocused business that sells environmental equipment. For example, itis the Japanese distributor of the
JELLYFISHBOT, a marine-depol-

Denjiro Tobari, President,
Heisen Yoko Co., Ltd.
lution drone created by IADYS, a
French robotics company.
Heisen Yoko’s environmental
commitment is illustrative of its
socially-conscious philosophy – onethat Mr. Tobari aims to pass on to
the firm’s next generation of managers. “Our principles are: goodness
to the company; goodness to ourcustomers and business partners;
and goodness to society,” he says.

www.heisengp.co.jp

Engineering plastics forthe products of the future
Utilizing its expertise in specialized plastics, Polyplastics has its eye on American andEuropean expansion.
We are living in a knowledge economy where complex products are
made using the specific know-how
of a range of companies. Japan’s
specialized engineering plastics

Narrow pitch connector
supplier Polyplastics is one of thecompanies using its expertise toensure everyday technology, from
iPhones to cars, run smoothly.
Founded in 1962, the company
has grown to become one of theworld’s most reliable engineering

Fuel pumpplastics producers, providing specialized solutions for its customers’ needs. An example of this is
Polyplastics’ liquid crystal polymer(LCP) which is used in the iPhone’s
connectors and camera modules
and will also be used in future
iPhone models due to its ability tosupport 5G connectivity.
The company’s specialized POM
thermoplastic resin, which is bothself-lubricating and oil resistant,is being used in a wide range ofindustries, including in fuel sendermodules in automobiles. Company
president Toshio Shiwaku says
Polyplastics’ expert engineers understand the rigorous testing procedure POM must undergo for specificuses, and reveals it was developed
through working with its customers.

Engineering plastics (POM pellet)
As Dr. Shiwaku says: “To continue to understand customers’
needs is crucial to find new applications and markets for our
engineering plastics.”“We are positioning
our company to offera broader variety ofengineering plastics
solutions.”
Toshio Shiwaku,
CEO, Polyplastics Co., Ltd.
Since expanding into Taiwan
and China, the company has plansto grow into the European andNorth American markets, and isalways on the lookout for potential partners, be that in productdevelopment and molding or geographical expansion.

www.polyplastics-global.com/en

INOAC: The indispensable supporter of theautomotive, housing and lifestyle industries
With its high-performance polyurethane materials, INOAC
has become a worldwide leader contributing to the successof the automotive, housing and lifestyle industries.
Founded in 1926, INOAC playsa critical role in the housing
construction sector, supplying
insulation materials across Japan and beyond. The journey totoday has been an interesting
one, including the creation ofa factory in the north of thecountry to support those workers previously in the coal industry, and growth continues,
as explained by the company
chairman, Soichi Inoue.

doing business in Hakuba afterconversations with a local school
manager and now we are expanding further. We are able to produce both mattresses for sleeping and insulation material in thesame company thanks to the wide
range of uses of polyurethane.”

Plant-based polyurethane foam
“ECOLOCEL”

One of the representative
consumer products:
polyurethane cleaning sponges“Today, INOAC has many factories, from Okinawa to Hokkaido, and because our material
is bulky and transportation costs
are high, we have to make our
products locally, helping the development of local businesses.
“Hakuba, for example, is a popular winter skiing destination,
and as well as supplying a large
amount of insulation boards, we
also produce special mattresses
for local homes and establishments. We have a plan to set up afactory there that manufactures
our newly branded ‘Color Foam
Hakuba’ mattresses.”

Beautiful mountains in
Hakuba Village
The focus of these bedding
products is proving to be a real
driver for the chairman.
“This new brand has become
like a personal hobby of mine,”
Mr. Inoue continues. “I started

Another field that is being developed at INOAC is in the automotive industry and changes toelectric vehicles (EV) are opening
new doors. “EVs must be lighter
than their gasoline-poweredcounterparts, which represents
an opportunity for us,” says Mr.
Inoue. “INOAC makes productsthat can reduce the weight ofvehicles and to deal with these
new market demands, we are developing more and more EV components. At the moment, about
40% of our business comesfrom the automotive industry— which has become more international, with the U.S. being thebiggest market for us — while
60% remains with construction
as well as living goods, such as
mattresses.
One particular success has
been the development of CALMFLEX, a unique sound absorption
and damping material utilized invarious applications, from nearsilencing car engines to preventing neighbor disputes upon thearrival of a child’s new piano.
“Our R&D activities are conducted on a global level, notonly in Japan but in China, New
Jersey, Singapore and elsewhere,” explains the chairman.
“We employ young chemists
and dispatch them to the U.S.
and Germany so that they canstudy new technologies, working as assistants.

Ken Miwa, Representative Director (left); Soichi Inoue, Chairman (center)and Yasushi Nomura, President & COO (right), INOAC Corporation
And when it comes to theenvironment, research is also
“Today, our international
evolving. “The creation of envibusiness is growing
ronmentally-friendly products
faster than ourand production processes is a
key focus of our R&D. We acJapanese operation, andtively conduct chemical recycling
the U.S. is our largest
operations and have signed varioverseas market.“ous partnerships to develop ecofriendly products, such as ourSoichi Inoue, Chairman,
bio-foam used for eco-sponges.
INOAC Corporation
While inconspicuous, foam is amaterial utilized across many ap- Then, due to their good relationplications, including in women’s ship with the U.S., we openedbras and underwear. As brands a large factory in Mexico andbecome more eco-friendly, the moved a sizable part of our busidemand for our product increas- ness there, allowing us to bees, including with a famous fash- more competitive in the Northion brand. One could say that American market.
while INOAC is not visible, it isplaying an important role frombehind the scenes.”
With almost a century behindthe company, Mr. Inoue continues to look ahead with a clear
plan and a global vision. “Mypolicy is that in every country,
be it the U.S., China or across Mattress for comfortable sleep
Southeast Asia, we always makepartnerships with local people.
“INOAC’s policy is to create
At INOAC, we create a work a business environment thatenvironment that is conducive benefits our employees, clientsto the location, respecting lo- and the areas where we concal cultures and the people. We duct business, contributing toalways employ local managers the local society. No matter theoverseas, just as in the U.S. location, no matter the country,
where they are all American.
growing with the local region“Today, our international busi- and the local people is our goal.”ness is growing faster than ourJapanese operation, and the U.S.
is our largest overseas market.
We began in Canada before
www.inoac.co.jp/en
opening a factory in Kentucky.

The chemical trader overcoming cultural obstacles
ATTO, which specializes in supply chain consultancy between Japanese customers andChinese manufacturers, has had to surmount numerous cultural challenges to succeed.
In its role as a supply chain advisor for the chemical industry, ATTO
Co., Ltd. imports raw chemicals andintermediates to Japan and provides
related client services, such as helping customers identify manufacturers and suppliers within the Chinese
market. Acting as a go-between forJapanese and Chinese companies
brings with it a number of distinct
challenges, including differences inquality control measures, regulatory
considerations and cultural norms.

“In our line of work,
responding to highquality demands is an
eternal challenge and aconstant undertaking.”
Imako Aoyama,
President and CEO,ATTO Co., Ltd.
“Ninety percent of our clientsare Japan’s largest chemical andpharmaceutical industries, andtheir demands for quality andBeing a Chinese woman, running
control measures are very strict,” a Japanese trading business in asays Imako Aoyama, President male-dominated industry means
and CEO of ATTO. “As traders, it is Ms. Aoyama has also had to perour role to be able to fully respond sonally overcome obstacles andto their needs and cater to their cultural norms to succeed, as well.
requests. Although
it can be a challenge,
we consider it an opportunity to makeprogress.
“In our line ofwork, responding
to high quality demands is an eternal
challenge and a constant undertaking.
Our Japanese clients
always require accu- Variety and category of products covered by ATTO
rate and sufficient information be- “Chemical manufacturing is a man’sfore signing the supply agreement. world,” she says. “To be a foreignThat is the cultural environment woman in this field has been chalhere in Japan. In China, there is not lenging. To begin with, it was justas much of a perfectionist-type of me and a part-time female staff
requirement. Our role is to bridge member in ATTO. In 2010 when
the differences in thinking, mindset I opened the office in China, I reand ways of doing things.”
cruited another woman to head up

Ms. Imako Aoyama, President of
ATTO (right), with the Governorof Tokyo, Ms. Yuriko Koike (left),at the TOKYO Women CEO
Award 2020
the office there. That made three
women taking care of everything.
We slowly built the foundations towhere we are today.”With ATTO having grown at an
average rate of 20% annually and
Ms. Aoyama’s sights set on thecompany becoming a ¥10 billion
business within the next decade,such ambition saw her honoredwith the TOKYO Women CEO
Award in 2020, and plenty of future accolades are certain to follow.

www.attoinfo.com

Precision parts for next generation industries“We will continue
to refine ourcomprehensive
technical capabilities,
and pursue evenhigher technologies.”

Since its foundation in
1969, Nakayama Precision
has supplied a wide rangeof products that contributeto society.

Shinichi Nakayama,
President,
Nakayama Precision Co., Ltd.
Factory in Kumamoto
With over half a century of experience, Nakayama Precision technology and parts can be found inanything from Apple iPhones andmini-LEDs to electric cars.
“Nakayama Precision is one ofthose SMEs with unique technologies that support industry,” explainspresident Shinichi Nakayama, “andwe aim to fully capitalize on ourstrength as a high-quality company
with production capability in Japan.
Our current focus is on the semiconductor and automotive industries.”
For continued growth, though,there is a need to broaden synergies.

“Engineering collaboration
amongst companies is crucial,” hesays. “I have high expectations ofestablishing R&D departments, developing new technologies and finding fresh ways of making machinery.
We provide our applications, technologies and know-how and wantto continue working cooperatively,
building globallycompetitive Japanese products
and machinery.”
While somecompany’s pushahead to venture
overseas, Nay- Molding parts

ayama has a strong argument for
its chosen path in Japan.
“We are not actively seeking
to go or partner overseas,” explains the president, “and this is
for the sake of our employees.
Even though the company needs
to grow, assuring security anda stable life forour employees and theirfamilies is vital.
However, if we
get contacted
or receive anyo rd e r f ro m
overseas companies, we are

FCV separator sample
willing to provide our manufacturing technologies.”
With new factories being established and opportunities to enter
the medical and aviation fields
being explored, Mr. Nakayama isalready preparing the company forthe long term.
“The credo of Japanese companies is to always create sustainable corporate operations forthem to continue for 50, 60 oreven 100 years. With that in mind,
passing the baton to the next
generation is important.”

www.nakayama-pre.co.jp

Venture Spirit:
Santec’s compass
to attain ‘Optopia’“At Santec,
our focus is
to deliver newvalue to theworld throughinnovations inphotonics.”“Optopia” is a word we created – optics technology plus utopia- to represent a global society supported by photonics technology.
Santec’s expertise in microSince developing the world’s ﬁrst
“fully automated optical-fiber optics, advanced optical devices,geometry inspection system” in tunable lasers, and optical test1984, Santec Corporation has ing and measurement paved the
supported the advancement of way for the expansion of its
the ﬁber-optic communications product lines into applicationsindustry. A recognized pioneer outside of telecoms. For examin its ﬁeld of photonics, the Japa- ple, the bio-medical and opticalnese ﬁrm released the world’s metrology industries have benﬁ rst benchtop tunable laser – efited from the company’s 3D
a popular instrument still used sensing and imaging technology.
by researchers today – before This is based on Swept–Source
Optical Cohergoing on to launchence Tomography
an advanced optical(SS-OCT), a techcomponent productnology which deline that has been
livers incredibly
deployed globally indetailed crossdata centers, as wellsectional images
as metro, long-haulof biologicaland submarine optis a m p l e s . Th i s
cal networks.
can benefit canOne of the comcer diagnosis aspany’s latest prodwell as image
ucts is the seventh
plaque in artergeneration modelies for example.
of the TSL range of ARGOS®
It can also be usedwavelength tunable SS-OCT BIOMETER
lasers. This is used in applica- to measure material thicknesses
tions such as photonic inte- with unprecedented precision.
Launched in 2015, ARGOS isgrated circuit testing, quantum
photonics, spectroscopy and one of Santec’s products basedon this technology. It is the mostsensing.
“We have almost 35 years’ accurate instrument of its type
experience manufacturing our and measures the key paramTSL series of tunable lasers,” eters of the human eye. This insays Mototaka Tei, President of formation is used in selecting theSantec. “It’s a successful product most appropriate lens to implant
and we have led the market since in cataract surgery. ARGOS has
we ﬁrst introduced the instru- really made a difference to thement in 1989. This is what we positive outcome of these operacall a benchtop tunable laser, and tions and contributed to quality
50-60% of its market is made up
of researchers.
“We sell this to the top universities and scientists who are
doing cutting-edge ﬁ ber optic
and telecommunications research. Institutions like Harvard,
MIT and Stanford; all the top
researchers, have and use this
instrument. We are very proudof that and pleased that many 3D Optical Proﬁler
research papers have been pub- of life after cataract surgery,lished pushing the boundaries of something which Mr. Tei is particularly proud of.
science using our technology.”“For us, our engineers created an incredible instrument
using our technology, but selling ophthalmic equipment wasdifficult. We partnered with
Alcon, who are the world’s largest manufacturer of ophthalmic
lenses that are implanted in
cataract surgery,” he explains.
“They say that cataract surgery is simple, as it can take only
10-15 minutes for each eye, but

Mototaka Tei,
President,
Santec Corporation

Optical Components

a successful factory partnershipin Vietnam to manufacture someof our products.”
In other areas, Santec’s photonics technology supports thedevelopment of ﬁber-optic-dependent technologies such as
cloud services, 5G communication and IoT. It is all part of the
Tunable Laser TSL Series
company’s mission to advancemeasuring the length of the eye the creation of ‘OPTOPIA’, using
to find out which lens to put in is a unique blend of photonic solucritical. Our instrument can do tions in tunable lasers, advanced
that accurately. Our competitors optical components as well as
in this market are in Germany, testing systems for communicawith a global customer base, tion, medicine, and metrology.
“Optopia is a word we crebut after entering the market
in partnership with Alcon, we ated – optical technology plus
have been able
utopia – to represent a global
to gain signifsociety supported by photonicant market
ics. A society that will
share.”
be warm hearted andMoving forenlightened. We call it
ward, Mr. Teia ‘Human Centric Inforhopes to build
mation Society’.
more strong
It is not mapartnerships withchine centric,
overseas firms and indata centric,
money centric
stitutions while also pursuing LCOS-SLM
M&A opportunities, for instance or material centric. It is huin 2021 two North American man centric,” explains the Sancompanies were acquired to en- tec president. “Warm hearted
ter the cable assembly testing people helping each other withmarket. “We are always looking the help of advanced opticalfor collaborative partnerships, technology. Technology must
and in fact even now we have contribute to human society andabout ﬁve in Japan. For example, maintain a better world where
we have some of our staff em- people are happier. If you debedded in Tokyo University, Ky- velop technology and society adushu University and Tohoku Uni- vances but people are not happy,
versity,” adds Mr. Tei. “Overseas, that is not a good society. We
we have one member of staff want to contribute to making
doing research in the University the world a better place, usingof Southern California as well as our fiber-optic technology.”

Creating OPTOPIA
Innovative optical components, test instruments andimaging systems for telecom, biophotonics and metrology

since 1979

Pioneering the future with ion beams
SMIT develops and manufactures ion implanters, which are essential for the production of semiconductor devices.
Working in the highly specializedﬁeld of ion implanters, Sumitomo
Heavy Industries Ion Technology
Co., Ltd. (SMIT) was ﬁrst established in 1983 and has forged an
enviable international reputationin the years since with four different types of machine currently
available in-house.
According to company president Mitsukuni Tsukihara, even if
Japan is no longer so dominant
in the manufacturing of semiconductors, the country continues
to prevail in the development ofequipment for semiconductor
production. While semiconductor devices, he explains, are constantly evolving and the prices ofhigh-quality products are declining even faster, manufacturing
equipment is able to maintainits price through constant performance improvements andcustomization.

Handling of wafers, which are
implant objects“One of the unique featuresof Japan’s research and development,” he continues, “is thatthe engineers work closely withthe customers. The country’s
great strength is when the requirements of the customers,
the demands of the market andtechnology of the engineer all
match at the same time.”
One of the group’s most notableproducts is the SAion, an all-in-

All-in-One ion implanter “SAion”“Our priority iscustomer demands andthe technology required
to cater to them.”
Ehime plant extended in 2022
one implanter that can handle
both medium- and high-current
implants while achieving a mechanical throughput of 500 wafers an hour.
Mr. Tsukihara explains how thetechnology works: “Most othercompanies use a different structure for high-current and mediumcurrent implanters, but we have established a commonality between
these two types. It isn’t simply aquestion of changing the power
supply; rather, we have to provide adynamic range that can reach up to
six digits, and which requires a highlevel of precision when it comes tocontrolling the dose.”

Medium-Current ion implanter“MC3-II/GP”
Drawing an analogy with theautomotive industry, where
vehicles can be classiﬁ ed interms of speed and load
capacity, Mr. Tsukihara
outlines his vision for
the SAion. If SUVs orvans are becoming popular, he says, because
they combine speed andload, then the SAion canbe seen as the SUV of ion
implanters with technology that offers clients thebest of both worlds.

Looking to the future, Mr.
Tsukihara confirms that thecompany is “actively seeking collaboration”, before outlining how
such co-creation would functionin practice.
First, there is collaboration
within the Sumitomo Heavy Industries group, with ion implanters divided into the categories ofion beam technology and wafer
handling technology respectively.
Second is the study of ion sources,in which SMIT collaborates with
universities and research institutes in pursuit of a common aim.
And third is the work the company undertakes with customers,
especially in the researchand development phase,
which enables it to create a “win-win situationfrom an early stage” ofthe process.
Mr. Tsukihara continues: “We are considering a sales agent,
and we are trying to ﬁnd apartner, speciﬁcally from North
America and Europe, with whom
we can collaborate to secure
the supply chain and conduct
research and development. Diversifying the supply chain has
recently become important;hence, we are trying to createa stable supply chain.”
The company has also identiﬁed certain countries and regions
for further expansion. “Elevenyears ago we could not sell our
products overseas due to contractual issues with both of ourparent companies. We have since

Mitsukuni Tsukihara,
President,
Sumitomo Heavy Industries
Ion Technology Co., Ltd.
been able to go abroad on ourown, starting in Taiwan and moving to China and Korea. In 2022,
we established a base in North
America to support the TSMC
fab in Arizona, and Europe willprobably be next.”
Amidst his plans for expansion, however, Mr. Tsukihara is
keen to emphasize the company’s
human element. “The most essential component as company
manager,” he says, “is to focus
on the company’s sustainabil-High-Energy ion implanter“S-UHE”
ity, to meet the expectationsof the graduates who enter thecompany after high school oruniversity and stay for the next
40-50 years.”
The company’s responsibility,
in other words, is to “lay out thefoundation for the next generation and pass the baton to them.”

https://shi-ion.jp/english

CONTENT BY THE WORLDFOLIO

It all begins with an innovative spirit
From the invention of a revolutionary hydraulic lathe to the development of leading-edge
pick-and-place machines, Fuji’s pursuit of innovation has been present throughout its history.

“We strive for growth asa global leader in factory
automation.”
AIMEXR SMT pick & place machine

Fuji smart factory solutions
A company guided by its corporate message “innovative spirit”,
Fuji Corporation is a major Japanese supplier of electronics manufacturing equipment, boasting
locations across the globe. The
64-year-old firm specializes inrobotic pick-and-place machines,
which are used to mount electronic components on printed circuitboards – a process integral tothe production of widely-usedtechnology such as smartphones.
“Back in 1959, company founder Mamoru Sakagami invented a
revolutionary hydraulic lathe suited
to mass manufacturing, which contributed greatly to the growth of
the Japanese automotive industry,”says Fuji President Nobuyuki Soga.

Electronics 3D Printer“At the time of development, he
faced resistance from people who
thought his idea was not applicable, but he continued to make efforts and completed the machinery.
That spirit of pursuing innovation
still remains in our company – it’sa core value for our employees.”
Among the leading-edge pickand-place machines that Fuji
supplies to the surface-mounttechnology (SMT) sector are thebest-selling NXT and its successor, the NXTR, which is expected
to be a big hit in 2023. Incorporating the latest advances in robotics, they guarantee high-speed,
high-quality placement, and canmount electronic components fora wide range of products.

The AIMEXR, a pick-and-placemachine whose creation was announced at the end of 2022, alsooffers excellent versatility – a quality
that’s more and more important toelectronics manufacturers. “Electronic circuit boards have been increasingly diversified,” Fuji said in astatement in December. “In addition,
globalization has brought instability in supply chains. These trends
require more flexible production
support at manufacturing sites.”
Meanwhile, another example of
Fuji’s state-of-the-art manufacturing technology is the FPM-Trinity,a quick, efficient electronics 3D
printer capable of resin printing,circuit printing and component
mounting. Its development is illustrative of the firm’s commitment
to playing its part in a greener
future. “We’re out to reduce the environmental impact of our businessactivities and contribute to a sustainable society and environmental
conservation,” Mr. Soga explains.
“The FPM-Trinity has near zerowaste liquids, etc., and we believe
it’ll be a promising device in the
future from the perspective of the
Sustainable Development Goals.”
In addition to supplying individual pieces of manufacturing

Nobuyuki Soga,
President, Fuji Corporationequipment, Fuji offers technologythat can optimize entire SMT production processes. Harnessing IoT,
Fuji’s smart factory solutions allow
clients to maximize quality andproductivity by linking up manufacturing machinery and systems
so they can share data with eachother. Armed with this information, companies can more easily
complete tasks such as scheduling;part management; systems maintenance; defect assessment; andproduction analysis. And, thanks toautomation, many such processes
are carried out automatically.
“If you’re a global company, youhave to control the production
system globally,” Mr. Soga says.
“Which products are made when,
where and in what quantity – that’svital information. Increasing production efficiency is important. Our
smart factory solutions combine
all the latest technology to provide a solution for our customers.
You have to be at the forefront of
cutting-edge technology, or you
will lose in this industry.”

www.fuji.co.jp/en

CONTENT BY THE WORLDFOLIO

A small company playing a big role in shaping electronics
Having recently listed on the Tokyo Stock Exchange, Kohoku Kogyo is pioneeringdevelopment in lead terminals and optical components and devices to support the
global electronics and telecommunications industries.

“We’re calling on foreign
investors to support the
expansion of our global
operations.”
Futoshi Ishii,
President,
Kohoku Kogyo Co., Ltd.
With the demand for aluminumelectrolytic capacitors and ﬁberoptic devices driven by the needsof ﬁelds such as 5G/6G internet,
CASE (connected, autonomous,shared, electric) vehicles, industrial automation, and smart electronics, the future certainly
looks bright for Kohoku Kogyo.
Established in
1959, Kohoku Kogyo – now listedon the Tokyo stock exchange following its IPO in December 2021
– is a leading manufacturer of leadterminals for aluminum electrolytic capacitors as well as opticalcomponents and devices. Producing some 50 billion pieces annually
through its seven production facilities worldwide, the Japaneseenterprise boasts a 40%
global market share for leadterminals for aluminum electrolytic capacitors and 50%
global market sharefor optical components and devices. This relatively
small company, therefore, plays
a hidden yet essential role in thegrowth and advancement of theaforementioned technologies.
In Japan’s electronics heyday,
there were up to seven companies producing lead terminals,
however, Kohoku Kogyo is oneof only two that have survived.
What sets the company apartfrom its competitors at home andabroad is the fact that it produces
all the machinery and equipment
to manufacture its lead terminals
independently.
“No company in the world
can do this, and we are a very
unique presence in that sense,”
president Futoshi Ishii proudly
declares. “Our ability to develop
and manufacture not only thelead terminals but also the equipment and machinery needed to
produce lead terminals puts us ina very dominant position. We dohave competitors in China, Taiwan, and Malaysia, but obviously,
we are a major player in this market, and those competitors use
equipment and machinery thatare duplicates and copies of ourolder and more obsolete
machinery.”
Kohoku Kogyo puts strong emphasis on protecting its technologicaledge and know-how, and has secured an ever-growing number ofpatents over the years as part ofits IP strategy. “In fact, we havemore than 60 patents now and I
think this is a key advantage of ourbusiness,” adds Mr. Ishii.

When it comesto the Shiga-headquarteredﬁrm’s competitive advantage inthe ﬁeld of optical components
and devices, design technology
is key. “We have a technology todesign devices, and we are theonly company in this industry to
be successful in designing the key
material composition as well as
devices,” the president explains. “I
think that the strength of Japanese manufacturers is that they
produce the materials themselves.
It isn’t a glamorous or fashionable
job, but it is essential.”of variation and waste in theautomotive industry supply
chain and assembly process,”
Mr. Ishii explains.

‘Essential’ is indeed the key
word when describing the workof Kohoku Kogyo, whose optical components and devices arefound at the backbone of the
global fiber-optic communication network, particularlyin undersea cables,
which require especially highreliability.
The company’s high-quality
and highly reliable lead terminals are also essential to someof the world’s biggest carmakers
such as Toyota and Tesla.
“What I have heard
from our customers is that they
only need Kohoku
Kogyo terminals,
and nothing can replace ours,” says Mr.
Ishii. “Even though weare a small company, it
is gratifying that these
massive companies
consider us a vital partof their business.”
Crucial to Kohoku Kogyo’s
reputation for high quality
has been its ability to minimize defects through strict
quality control measures. The
company is in fact the only
one in its field to hold IATF
16949 certification, a technical specification focused on“the development of a quality
management system that provides for continual improvem e n t , e m p h a s i z i n g d e fe c t
prevention and the reduction

Following its successful introduction on the Tokyo Stock
Exchange, Kohoku Kogyo hopes
investment and collaboration
with new partners will help tostrengthen its continual productdevelopment, which is currently
focused on areas such as highpurityquartz glass andmulti-core optical fiber.
Again, the company’s proprietary equipment and machinery,and longstanding know-how,
has seen it lead the way in these
new fields. “In the lead terminal
manufacturing process we use
precision molds, and this precise
shaping technology and knowhow are used in the manufacturing of optical components. I
think that is a great synergy wehave realized.”
While the company is currently seeking collaboration in
the ﬁeld of laser device manufacturing, it also aims to ﬁ ndpartners to support its global
expansion efforts, with the U.S.
and Europe being top priorities
in this regard. “We are trying toestablish sales ofﬁ ces in both
locations and may look to someforms of joint ventures to assistin penetrating those markets,”
Mr. Ishii reveals. “I can’t disclose more information at thistime, but needless to say, exciting
things will be happening in the
not-so-distant future.”

www.kohokukogyo.co.jp/en

Fujitsu Component: championing customer-centric design
A business partner with a customer-centric approach, Fujitsu Component provides state-of-the-art technologythat supports various high-tech fields including IoT, wireless technologies and electric vehicles.

“We can develop
products based on thecustomers’ requests.
Having frequentconversations withcustomers keeps their
voice relevant in thedesign and engineering
process.”
Masahiro Kinoshita,
President,
Fujitsu Component Ltd.
Fujitsu Component is a technologydriven enterprise with over 100
years of experience in design anddevelopment. Today the company
is world-renowned for supporting
relays, wireless modules and IoT solutions, thermal printers, and touch
panels, making it an indispensable
partner for clients in the electronics
and automotive industries.
While pursuing advances in
cutting-edge technology at its
R&D Centre in Japan, Fujitsu
Component’s quality department
also ensures the highest possible
standards of output while contributing to society and sustainability
as well as reducing the impact on
the environment. Indeed, it is thisdedication to quality – backed byan acute understanding of customers’ needs – that continues to
set Japanese firms apart from regional competitors, as highlighted
by Fujitsu Component president
Masahiro Kinoshita.
“When it comes to cost, Chinese,
Korean and Taiwanese manufacturers are much cheaper than us, but
quality wise, Japanese companies
may be the best providers globally.”
Kinoshita says. “Why is that? First,
we can develop products based on
the customers’ requests. Having fre-

Mesh network products
quent conversations with customers
keeps their voice relevant in thedesign and engineering process, so
in a sense, our engineering capability is one of the key factors of ourcompetitive advantage. The second
reason is that every product is undergoing miniaturization, so we haveto produce very small products on amass production basis.”
He adds: “The balance between
cost and quality is important, so
for Japanese companies, quality
is the priority, and then we look at
cost. Japanese companies makebetter quality products to compete with. We also have strength
in after-sales, so we can provide our
product as the customers require.”

Relays for EV/PHV
Miniaturization is of course a major requirement for the semiconductor industry, where Fujitsu supplies
niche components such as its signal
relays. Here, collaboration has been
key. The company strives to offer themost optimum-performing products
as semiconductors and their components get increasingly smaller.
“We already had an advantage indesign capability, but on top of that,
we have recently been collaboratingwith some material manufacturers to make signal relays smaller,”
Kinoshita notes. “In reducing thesize, we reduced the weight usingmaterial that came from the col-laboration with the material manufacturer. Also, some clients needsmaller chipsets with high specification, and we sometimes switch ourcore chips to more highly functional
ones and reduce the overall productsize at the same time.”
Needless to say, when it comesto quality and performance, allautomotive industry players, fromparts suppliers to major car makers
like Toyota and Nissan, need to beon the top of their game. Amongthe components Fujitsu supplies
to these automotive behemoths is
the FTR-K5 series of relays, which
it developed in 2019. The FTR-K5 is
the world’s first 6.6-kilowatt power
supply for EV (electric vehicle) andPHV (plug-in hybrid vehicle) onboard chargers, and with a highcapacity, highly reliable board
mounted relay, offers manufacturers the ability to extend the cruising
range of EVs and PHVs.
Kinoshita explains: “The relay
complies with the strict automotive standards concerning vibration
resistance, operating temperatures,and insulation class – meeting
IEC61810-1 277V enhanced insulation standards. The size of relays
is a competitive arena. Other considerations are low energy consumption and resistance to hightemperatures. When a product isdelivered, it may have not only an
onboard charger but also a charging station people can use at home.”
There has been a major shift in
the automotive sector with theadvent of CASE (connected, autonomous, shared, electric) vehicles
and it is estimated that the costshare of electronic components inthe car will increase to about 35%
by the year 2025, up from 16%

today. It is a trend that bodes wellfor Fujitsu Component, which will
have an ever-growing number of
products supporting a range offunctions in CASE vehicles. It is anarea that serves as a “sweet spot”
for the company, Kinoshita says.
“We have the FTR-K5 and the
FTR-E1 series, which are more of afit for EV relays and power control.
Regarding CASE, this could be a
gateway to opening the EV market. Our parts are also involved incases of emergency. In connectedcars, when an accident happens,
the car automatically connects to an
emergency center. We have alreadyprovided FTR-B3 and FTR-B4 relays
for this. It is a signal relay inside of
the car that is used for connectivity.”
In addition to automotive, theJapanese enterprise’s products
have applications in various otherfields, including FA (factory automation) equipment, mobile terminals and healthcare. In particular,
Kinoshita highlights the company’s
mesh network products, whichwere born out of a collaboration
with Wirepas, a Finnish company
engaged in improving IoT connectivity solutions. “Our mesh network devices construct a scalable
decentralized network and haveautonomous network rerouting
capacity,” he states. “We have expanded our lineup since the releaseof the first product in 2020. They
are the best for asset tracking andenvironmental sensor data collection in large hospitals, factories,
offices and schools.”
Moving forward following thecompany’s move to become independent from parent company Fujitsu in 2019, Kinoshita aims to build
even more successful partnerships
like that formed with Wirepas. “We
are very open to partnerships everywhere,” he concludes. “We needto collaborate positively with universities or startups and all the big
players to develop more advanced
products, so we are open to joining
forces with third parties.”

www.fcl.fujitsu.com/en

Komatsu Industries Corp. providing
machinery for a new manufacturing era
Komatsu Industries Corp. provides its best-in-class machinery and after-sales services to automotive makers,
while leveraging IoT to champion predictive maintenance technologies.

“We stay connectedwith our customers byproviding after-sales
services in order to bea lasting partner.”
Yasushi Kitade,President,
Komatsu Industries Corp.
Guided by its “Quality and Reliability” philosophy, Komatsu Industries
Corp. serves as an indispensable
partner for manufacturers in theautomotive, construction andhome appliance industries, supplying industrial machinery built
to the highest quality and made tolast. A pioneer of technologies suchas its servo press, the Japanesecompany is today providing stateof-the-art machinery supporting
the development of the automotive
industry and manufacturing-based
IoT applications.
Aside from press machines, thecompany has focused on laser
technology, developing ﬁber-laser
cutting processes that enable cutting to be done in water, which will
result in reduced environmental
impact and ensure energy savingsfor customers.

Fiber laser cutting in waterWith the emergence of electricvehicles (EVs) that require lighter
weight materials, high-tensile steel
has been in high demand. In response, Komatsu has developed alaser cutting machine that trims

the press-formed parts of high tensile steel. “Our TLH 3D laser cutting
machine is the best solution fortrimming hot-formed parts,” sayspresident Yasushi Kitade.

TLH: 3D-laser cutting machine
Meanwhile, the evolution ofcold forming, which requires
less energy consumption thanhot forming, bodes well for an
automotive industry looking tolower its carbon footprint. “Amidthe carbon neutrality trend,
product development has led tocold-formed high-tensile steel
having gained almost the same
strength as hot-formed without
hot forming,” explains Mr. Kitade.
“Komatsu has been developing
suitable press machines with ourcustomers for cold-formed ultrahigh-tensile steel.”He adds: “The quality of EV vehicles is oftentimes determined by
the distance it can run and operate,
but at the same time, the design
aspect is crucial, so we are now
talking with automotive companies about the strengths of our
servo press, which can do so manythings at once. Our products are
long-lasting, so it is crucial that we
provide long-lasting maintenanceservice and retain good relationships with our customers.”
As it strives to provide longlasting maintenance, Komatsu
has leveraged the strength of IoTtechnology to develop its predictive maintenance services, which
is helping clients to increase theproductivity and efﬁciency of their
manufacturing operations.
“We have a predictive maintenance system incorporated into eachmachine in order to keep staff up todate on the machine’s health,” says
Mr. Kitade. “There are many components in each piece of our machinery,and each component has a prediction

Large-sized Servo Press line for stamping automotive body panels

on its lifespan. We are analyzing andtaking data on each component todetermine its longevity. There aremany different customers, and assuch, each customer takes theirapproach to our machinery a little
differently. Some customers keepspare parts for our machinery anddo regular replacements, whereassome do not. We are trying to use
this system to urge our customers
to do predictive maintenance andparts replacements.”
In terms of its global operations, Komatsu Industries Corp. haseight overseas subsidiaries locatednearby automotive manufacturers’
plants. In the U.S., it is approaching
car makers buying up old Japanese
automotive factories to transformthem into EV plants. “We havebeen approaching thesecompanies since
we have experience providing
services to these
existing Japanese factories,”says the Komatsu Industries
Corp. president.
“Globally, there
are new emerging EV companies, so we arealso approaching
H1F-2:
them so that we Small-sized
can increase our Servo Press
sales channels.”
As the company presses ahead
with supporting a new era of manufacturing, Mr. Kitade stresses
the importance of the company’scommitment as a long-lasting
partner. “What is important in
manufacturing is providing the
products and service, and there
has to be a balance between thequality of the product and theafter-services added on top. We
wish to keep our business growing
by providing this comprehensive
solution to our customers.”

https://sanki.komatsu/en

CONTENT BY THE WORLDFOLIO

High-speed stamping press machines
for the future and happiness“Yamada Dobby’s
machinery contributes to
the global environmentand society, offering
reduced power
consumption and azero defect production
system. Our policy is‘Stamping Happiness’ –bringing happiness to theworld through stamping
press technology.”

Yamada Dobby is a global
leader in the productionof high-precision pressmachines for key industrial
sectors.
Founded in 1919, Yamada Dobby
started out producing textile
machines, and since 1961, has
specialized in the manufactureof high-speed press machines forthe production of precision parts.
The company offers a variety
of machines for a wide range ofindustries, from EVs to luxury
watches, and is deeply involvedin the electronics, automotive
and medical sectors.
Yamada Dobby boasts worldclass technologies, utilizing servo motors that offer an accuracyof 1 micron, and the world’s
fastest stamping press with aspeed of 4000 SPM. The policyof accuracy is to build the machine as “a moving die”. The
manufacturing method involves

the use of top quality machinery, while the last stage of theprocess is always reserved forthe craftsmanship elements.
In the EV industry, Yamada
Dobby’s precision machinery is utilized in the manufacturing of motor
cores and explosion-proof valves forlithium-ion batteries. In the medical sector, it provides a complete
stamping process for the production of painless micro-needles.

Takeo Yamada, President,
Yamada Dobby Co., Ltd.
The machine is designed rigid
and through its micron controlled
movement, it can achieve a longer
die life which leads to signiﬁcantly
less production downtime. “Theimportant point is to decide which
direction to go, creating lighter
weight, or improving the softwareand human friendly applications,”
says president Takeo Yamada.

NXT-50Wi
Yamada Dobby has offices
worldwide to deliver local aftersales services and is especially
focused on its expansion in Europe, India, and Southeast Asia.
The company offers dedicatedstamping turn-key lines to all
customers according to their
specific stamping processes.
www.yamadadobby.co.jp

TMW: the integral and beyond
Since its foundation in 1949, TMW has become the go-to manufacturer of injection
molds for automobile parts.

TMW uses “FCS Clamping” tomanufacture molds and is a distributer of the “FCS System” for Asia
TMW is a specialist producer ofplastic-injection molds for automobile parts such as instrument panels
and bumpers. Founded in 1949, theJapanese company supplies a hostof major vehicle manufacturers
both at home and abroad.
TMW also sells hot runners – thetool used to inject molten plastic
into a mold – and machine ﬁxtures.
“Molds are our core business– it’s something we’re good atand famous for, because we’vebeen doing it for more than 70
years,” says TMW’s president, Hiroki Tatematsu. “Our backgroundallows us to go anywhere in theworld and be viewed as a goodcompany to collaborate with.”
A ﬁrm with overseas subsidiaries
in China, Mexico, South Korea, Thailand and the U.S., TMW also harnesses a global network of outside
partner companies based in Asia,
Africa, the Americas and Europe.
“Partnerships are crucial to us,”
Mr. Tatematsu explains. “We need
the capacity of our subsidiaries in“Safety always ﬁrst”(TMW Group’s head plant)

places like China and Korea, as wellas our many partners, to remain amarket-leading business.”

Headquarters show roomwith a variety of specialized
automotive parts
As the automobile industry
transitions from internal-combustion engines to electric vehicles (EVs) and fuel-cell vehicles(FCVs), TMW is ready to keep
pace with this historic shift.
“Our core business won’tchange so much,” Mr. Tatematsusays. “Whether it’s EV, FCV orgasoline engines, there’s always
an interior and exterior.

“Many in our industry
would try to competewith China and Korea
or ASEAN countries.
On the contrary, TMW
looks at them aspartners in order tostay in global business.”
Hiroki Tatematsu,
President, TMW Co., Ltd.
“The design of many things webuild will change, for example buttons will be changed to touch panels. The shape’s going to be more
complicated than it used to be.”www.tmw-integral.com/en