march 2006 jetro japanese market report - ジェト …. terms and conditions of transaction 54 3....

JJEETTRROO

JJaappaanneessee MMaarrkkeett

RReeppoorrtt

No.77 March 2006

Nanoscale Equipment for Visualization and Measurement

Contents

Introduction--------------------------------------------------------------------------------------------------- 1 Summary ------------------------------------------------------------------------------------------------------ 2 I. Market Overview ------------------------------------------------------------------------------------- 4

A. Market Size -------------------------------------------------------------------------------------------- 4 B. Market Trend------------------------------------------------------------------------------------------ 6

1. Electron Microscope------------------------------------------------------------------------------- 6 1.1 Transmission Electron Microscope (TEM) -------------------------------------------- 6 1.2 Scanning Electron Microscope (SEM) -------------------------------------------------- 8

2. Scanning Probe Microscope (SPM)----------------------------------------------------------10 3. Confocal Laser Scan Microscope (CLSM) -------------------------------------------------13 4. Near-Field Scanning Optical Microscope (NSOM) -------------------------------------15 5. Micro Raman Measurement System--------------------------------------------------------17 6. Particle System Characterization Machine ----------------------------------------------20 7. Focused Ion Beam System (FIB)-------------------------------------------------------------22 8. Surface Smoothness Measurement System ----------------------------------------------24 9. Data Analysis Software-------------------------------------------------------------------------26

C. Industry Map-----------------------------------------------------------------------------------------28 D. Major Study Projects on Nanotechnology ---------------------------------------------------30 E. Market Prospects------------------------------------------------------------------------------------34

1. Current Direction of the Industry -----------------------------------------------------------34 2. Technological Trend of Nanotechnology ---------------------------------------------------37 3. Business Prospect by Product ----------------------------------------------------------------40

II. Laws and Regulations ------------------------------------------------------------------------------ 41 A. Safety Criteria of Laser Beams-----------------------------------------------------------------41 B. Japan Industrial Standard (JIS) ---------------------------------------------------------------43

III. Governmental Measures ------------------------------------------------------------------------- 44 A. Formation of Basic Program for Science and Technology ------------------------------44 B. Nanotechnology Program-------------------------------------------------------------------------45 C. Nanotechnology Comprehensive Support Project-----------------------------------------47

IV. Business Model and Practice -------------------------------------------------------------------- 50 A. Distribution Channel ------------------------------------------------------------------------------50 B. Typical Business Model in Japan --------------------------------------------------------------51 C. Business Practice in Japan ----------------------------------------------------------------------53

1. Sales Agency System ----------------------------------------------------------------------------53

2. Terms and Conditions of Transaction ------------------------------------------------------54 3. Global Procurement System (Integration of Purchasing Functions) -------------54

V. Market-Entry of Foreign-affiliated Companies---------------------------------------------- 55 A. Trend of Foreign Companies Entered in Japan -------------------------------------------55 B. Major Type of Entering into the Japanese Market ---------------------------------------56 C. Key for Success and Challenges of Foreign-affiliated Companies in Japan ------56

1. Key for Success ------------------------------------------------------------------------------------56 2. Challenges ------------------------------------------------------------------------------------------57

VI. Advices for Entering into the Japanese Market ------------------------------------------- 59 A. Establishment of Offices --------------------------------------------------------------------------59 B. Future-Promising Market ------------------------------------------------------------------------60 C. Others---------------------------------------------------------------------------------------------------61

VII. References ------------------------------------------------------------------------------------------- 63 Ａ. List of Related Organization/Companies ---------------------------------------------------63 Ｂ. List of Related Trade Show（holding periodically）----------------------------------72

Procedures for Investing in Japan--------------------------------------------------------------------73

Introduction

Nanotechnology refers to a technology to create substances which at least one of their

structural properties such as size of a crystal, thickness of a membrane and diameter of a particle is

nano-meter (one billionth of one meter) level and to make computers, communication equipment and

machines of minute size by combining and assembling such substances. In Japan, various types of

nanotechnology are currently under development in such broad field as manufacturing, IT,

biotechnology, medicine, energy and environment. The development and industrial application of

nanotechnologies are steadily progressing in various industrial fields i.e. microfabrication

technology in semiconductor manufacturing process and applied researches of new materials (carbon

nanotube and fullerene).

Nanoscale equipment for visualization and measurement that provides atomic and

molecular level observation, manipulation and control supports development of nanotechnology. It

is reasonably considered that present research and development of nanotechnology in Japan have

made such a great advancement because of the development and advancement of such devices i.e.

electron and scanning probe microscopes. In this sense, further development of the devices will

cause a great impact on the future development of new technologies and products in Japan.

The demand of visualization and measurement devices from Japanese research institutes

and each industry is quite high compared to that in other parts of the world, and Japan forms an

attractive market for manufacturers overseas. A survey was conducted this time to provide related

market information to overseas companies which are interested in entering the Japanese market and

to encourage foreign direct investment to Japan.

This report focuses on the following nine product categories by defining them as the

market of nanoscale equipment for visualization and measurement, and overviews the shift of the

environment of the market in terms of the market conditions, directions of research and development,

related laws and regulations, business practice and future course of this industry. The nine product

categories include:

a. Electron microscope b. Scanning probe microscope (SPM)

c. Confocal laser scan microscope (CLSM) d. Near-field scanning optical microscope (NSOM)

e. Micro Raman measurement system f. Particle system characterization machine

g. Focused ion beam (FIB) h. Surface smoothness measurement system

i. Data analysis software

This report also examines the trend of foreign-affiliated manufacturers already in operation

in Japan to extract and analyze how they entered into Japan and problems they may face, to provide

valuable set of advice for entering into the Japanese market.

This survey report was developed by Yano Research Institute and compiled by JETRO

(Japan External Trade Organization).

1

Summary

In 2004, the size of the market of nanoscale equipment for visualization and measurement

in Japan was 54.38 billion yen, up by 13.2% over the previous year, supported by the trend of

increases in research and development and plant investments in Japan. Though the trend was

slightly slowed in 2005 i.e. 57.7 billion yen or up by 6.1% over the previous year, due to the stagnant

plant investment by semiconductor- and electronic-related industries, major demand areas for this

business sector, the market in general may have been shifted steadily.

It is estimated that the market of nanoscale equipment for visualization and measurement

in the world reached to 160 billion yen or above in 2004, a third (33.8%) of which was occupied by

the demand from the Japanese market. Japan is considered as the second largest market in the

world next to the U.S.

In terms of product category, scanning electron microscopes occupied 25.4% or 13.8

billion yen in the Japanese market in 2004, followed by focused ion beam (10.2 billion yen) and

confocal laser scan microscope (8.1 billion yen).

The boom of the Japanese market in this business sector, one of the largest markets in the

world is attributable to the demand of these equipment from semiconductor, electronic parts and

devices sectors and strategic support from the Japanese Government toward nanotechnology-related

research and development. After positioning “nanotechnology materials” as one of the four priority

areas in the science and technology basic guidelines setout by the Japanese Government in 2001, as

the general guideline of the nation’s science and technology policies, various projects have been

planned and implemented. The results of such research and development projects are expected to

contribute to creation and advancement of new visualization and measurement equipment.

The ratio of Japanese and foreign-affiliated companies in the market of nanoscale

equipment for visualization and measurement in Japan is 4 to 1 due to the fact that the survey

conducted this time was mainly on manufacturers. Since the market is barely controlled by any

regulations and laws to note, it can be said that the obstacles for foreign manufacturers in entering

the Japanese market is small. According to the survey, the success of entering into the Japanese

market would depend on competitiveness such as product functions and sales competencies.

This report explains the factors impacting on the success of the foreign manufactures in

Japan including (i) advanced product functions, (ii) abundance and diversification of application,

(iii) richness in analysis database and (iv) fast and broad information dissemination. While

Japanese manufacturers have an advantage in responding to meticulous needs of end-users, foreign

manufacturers (as well as Japanese multinational manufacturers) would have an advantage on

cross-boarder research and development and production activities or feedback of global level

epoch-making information to service forces.

In the market of nanoscale equipment for visualization and measurement in Japan, many

2

world-famous manufacturers and Japanese companies have been developing various businesses.

There are some companies that will enter in the Japanese market as well. In terms of business

segments, the growth and market occupancy of focused ion beam, electron microscope and surface

smoothness measurement system are both high and future promising for foreign manufacturers to

enter into the Japanese market, judging from the market growth ratio and the share in the world

market from 2003 to 2005.

The sub-market of data analysis software, particle system characterization machine and

Micro Raman measurement system are interesting market in terms of high growth, though their

market share in the world is slightly less than the above products.

3

I. Market Overview

A. Market Size

According to the hearings to major companies, it is estimated that the size of the Japanese

market of nanoscale equipment for visualization and measurement reached to 57.7 billion yen (or up

by 6.1% over the previous year) in 2005. Though the growth ratio varies by product (Fig. 3), the

market in general makes a shift backed by the increased investments for research and development

and plant. Since 2003, the market has been making an annual increase of 10.1% annually (in terms

of a simple average).

Fig.1: Changes in the Market Size for Nanoscale Equipment for Visualization and Measurement in

Japan (2003 to 2005)

480.4543.8 577.0

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2003 2004 2005

（100 million yen）

（year）

Source: Hearing to major companies

Fig.2: Market Size in Japan and the World （2004）

The global market size for nanoscale equipment

for visualization and measurement equipment in 2004 was

160.65 billion yen, and it is estimated that Japan has a

share of approx. 33.8%. It is generally a common

understanding of the major market constituents that the

as

O

Japan543.833.8%As of 2004

(100 million

S

market size in Japan is the next largest to that in the U.S. or

on the par with Europe as a whole. Such a significant

market share of Japan is supported by the fact that it is a

home ground of those equipment in the world added by

that the government supports the research of

nanotechnology and that it has an accumulation of

high-tech companies as end-users of such equipment, such

semiconductor, electric machine, electronic materials, and raw material-related industries.

verseas 1,062.766.2%

yen, %)Overseas

ource: Hearing to major companies

4

Fig. 3: Trend of Market Size in Japan by Product (2003 to 2005)

3,500

1,500

11,600

2,600

2,000

200

7,700

5,450

14,950

8,200

3000

1,360

10,200

2420

1800

200

8,100

5,500

13,800

8,000

2600

1,270

8,150

2100

1650

200

8,000

6,170

11,100

6,800

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Software

Surface Measurement

FIB

Particles

Raman

SNOM

CLSM

SPM

SEM

TEM

2005 2004 2003

unit: in million yen

Legend: TEM: Transmission electron microscope SEM: Scanning electron microscope SPM: Scanning probe microscope CLSM: Confocal laser scanning microscope NSOM: Near-field scanning optical microscope Raman: Micro Raman measurement system Particles: Particle system characterizationmachine FIB: Focused ion beam system Surface measurement: Surface smoothness measurement system Software: Data analysis software

Source: Hearings to major companies

5

B. Market Trend This report defines the market of nanoscale equipment for visualization and measurement equipment as the 9 product groups as shown in Fig. 3. Each of the 9 groups shows a certain variation in the trend of the respective product market, based on the functions, application and needs of end-users. The following space is dedicated to describe the market size and market trend of each product group. 1. Electron Microscope Unlike an optical microscope that magnifies a subject by the use of visible light ray, an electron microscope does so by shooting electron rays. The electron microscope is widely used for research in the academic domain of physics, chemistry, engineering, biology, clinical medicine and medical researches. The major feature of an electron microscope is that it allows observation under high resolution environment (or the ability of observing minute distance of two separate points as “two points”). The theoretical limit of resolution of an optical microscope is approx. 100 nanometers, whereas, that of an electron microscope, using electron rays, can be 0.3 nanometers, due to the fact that the wave length of an electron beam is shorter than that of visible light rays. Currently, it allows observation of specimen as small as an atom. There are roughly two types of electron microscope; a transmission electron microscope (TEM) and a scanning electron microscope (SEM). More recently, a scanning transmission electron microscope (STEM) that is embedded with the features of both types of electron microscopes is also gaining attentions. 1.1 Transmission Electron Microscope (TEM) A TEM is a microscope that is used to view a specimen through observing magnified electron rays hit and penetrated through it. Shading image of electron rays penetrated and reflected is observed on a fluorescent screen or as a picture image. The volume of electron rays penetrated depends on specimens. The resolution of a current TEM is 0.1 nanometers and the magnification level of it is more than 1 million times.

Fig. 4: Market Size of TEM

mpanies

68.0 80.0 82.0

0.0

20.0

40.0

60.0

80.0

100.0

2003 2004 2005 (year)

(100 million yen)

2004(100 million

yen, ％)

Japan80

38.1Overseas130

61.9%

Source: Hearings to major co

6

■Market Overview

The size of the TEM market in Japan in 2005 is estimated as 8.2 billion yen or up by 2.5%

over the previous year. From 2003 to 2004, the market significantly grew by 17.6%. However, in

terms of the 2004 - 2005 periods, it remained in slight growth of 2.5% due to the shrinkage of basic

research budgets and other reasons.

In terms of the world market, the Japanese TEM market occupies 38.1% share in 2004, as

estimated.

■Major Field of the Demand

Major demand area of TEMs includes semiconductor, liquid crystals, chemistry (silicone

and polymers), hard discs, memories and carbon materials. In terms of bioscience, medical

treatment, medicine and biology are also among the major demand area.

The ratio of demand from universities and public research institutions and that from

private sector is estimated as 6:4, which is due to the fact that TEMs are often used for basic research

purposes.

■ Factors Driving the Demand

The TEM market has been expanded since the so-to-speak “ nanotechnology boom” of a

few years ago, when it was sold well as a device for basic research purpose to public research

institutions. After the period, the market tends to grow slowly but continuously due to the

following reasons:

(i) Growing needs of TEMS for observing crystal structure of nanotechnology materials and 3D

observation of semiconductors,

(ii) Progress of collaborative and affiliated research and development of private companies and

national research institutions undergoing a course of an independent administrative entity,

(iii) Steady plant investment by private sectors, mainly digital home appliances and

semiconductor makers, and

(iv) Others.

In addition, as many researchers desire to have a TEM customized to their research

purposes, the price tends to be high and this contributes to the expansion of the market size in

monetary basis.

■ Business Prospects

It is generally believed that the demand from universities and public research institutions is

unlikely to grow significantly, if and when the national budget for basic research is revised. In

terms of the demand from the private sectors, some companies believes that a cloud slightly

7

observed in the consumer spending trend to the core demand areas of digital home appliances,

emicond

Companies］

SII Nano Technology, Inc.

Hitachi

FEI Co

pe (SEM)

Market Overview

the SEM market in Japan in 2005 is estimated as 14.95 billion yen or up by

.3% ove

s uctors and raw materials will cause not a small impact on companies’ plant investment

activities.

■ Major Players

The followings are the major players in the TEM market.

［Japanese

・

・JEOL Ltd.

・ High-Technologies Corporation

［Foreign-affiliated Companies］

・Carl Zeiss Japan

・ mpany (Japan) Ltd.

(Listed in random order)

1.2 Scanning Electron Microsco

A SEM is used to observe images produced by electrons reflected while scanning a

specimen with electron rays or by secondary electrons. It is useful in measuring and observing the

characteristics and shape of a specimen surface and inside structures of the area comparatively close

to the surface.

Fig. 5: Market Size of SEM

(100 million yen)


■

The size of

8 r the previous year. From 2003 to 2005, the market made a growth by 34.7 points,

suggesting that in a short-time period, the market in general is in a steady growth.

In terms of the world market, the Japanese SEM market occupies 44.8% share in 2004, as

111.0

138.0 149.5

150.0

2004(100 million

Japan13844.8

50.0

100.0

0.02003 2004 2005 (year)

yen, ％)O

5

verseas1705.2%

8

estimated.


Major demand area of SEMs broadly includes semiconductor and its related materials,

teel, metal, automobile, machinery, chemistry, pharmaceuticals, cosmetics,

lectronic

and from universities and public research institutions and from private

h means SEMs are mainly used by private sector.

M market is mainly attributable to the recovery of consumption

or products such as digital home appliances and mobile phones, as well as for

ich stimulated plant investment. Equally important factors to expand

pe of using SEMs expanded from research and development to production

nd quality control, which promoted purchasing of more than one SEM by the same company. In

e electronic equipment industry, for example, some manufacturers have started to use SEMs to

e to the mounting needs of measurement at their

anufact

ducts by enterprises which formerly were reluctant to do so due to the restriction

the space to install a large SEM or due to the price.

■Business Prospects

There are some concerns to the future prospect of SEMs, including a sign of reluctance of

plant investment observed in the semiconductor market, one of the most important demand drivers

of SEMs and that a considerable time would be required before the demand to SEMs in the

electronic equipment material market makes an upturn. On the other hand, some views that the

demand for the product will increase in the advanced materials fields or that plant investment will

shift steadily in chemical, machinery and material industries, it is safe to say that the SEM market

ly, though, in the short time perspective. It is expected that widened

small-size SEMs and improved added-values of SEMs by

corporating other functions will contribute to the expansion of the market.

Major P

liquid crystals, s

e parts, and raw materials besides basic research purposes.

The ratio of dem

sector is estimated as 2:8, whic

■Factors Driving the Demand

The expansion of the SE

trends for semiconduct

automobiles and materials, wh

the SEM market is the sco

a

th

their quality control functions as well in respons

m uring sites, in addition to research and development applications. In addition, appearance

of smaller in size and low price SEMs, such as desktop type and portable type also have expanded

the user base of the products. The appearance of such desktop and portable type SEMs promoted

purchase of the pro

in

will continue a growth, gradual

variations of product type including

in

■ layers

The followings are the major players in the SEM market.

［Japanese Companies］

9

・ o Technology, Inc.

・Elionix C

SII Nan

o., Ltd.

Keyence Corporation

JEOL L

Carl Ze

isted in random order)


ace is measured. Due

its characteristics, a STM can be used for conductive materials only, while an AFM doesn’t have

nd insulating materials can be viewed. Moreover, it can allow observations quite

exibly r m, atmospheric, or under-water.

・

・Shimadzu Corporation

・ td.

・Hitachi High-Technologies Corporation


・ iss Japan

・FEI Company (Japan) Ltd.

(L

2. Scanning Probe Microscope (SPM)

Fig. 6: Market Size of SPM

61.7 55.0 54.5

0.0

35.0

70.0

2003


2004 2005 （year）

2004(100 million

yen, ％)

Japan55

30.2%Overseas

12769.8%

S

A SPM is a general name of equipment that has a 3D resolution capacity of an atom level

and scans the surface of a specimen using a minute probe to observe minute structure of it. A

scanning tunnel microscope (STM) and an atom force microscope (AFM) are included in the SPM

category. A STM detects the tunnel current between a specimen and a probe to view the surface

structure of the specimen as a prototype of SPM. After the invention of a STM, an atom force

microscope (AFM) was invented. An AFM detects atom force between a specimen and a probe for

observing the surface structure of the specimen. The principle of an AFM is to detect atom force

(attractive force and repulsive force), then to scan the surface of a specimen while keeping the

balance of attractive and repulsive forces, by which the 3D shape of the surf

to

such restrictions a

fl egardless of the application environment, whether vacuu

10

It is said that its resolution capacity is at least equivalent to that of a STM. After the invention of

roscope (FFM), a magnetic force microscope (MFM) and a near-field

e (NSOM) have been developed to view a specimen using interactions

a probe friction force, magnetic force and near-field light respectively.

ost universally used.

s are generally categorized in ultrahigh vacuum type and atmospheric type based on

ituation. This report follows the same categorization

SPM used for measurement in the ultrahigh vacuum environment

of 10-8Pa

Atmospheric type: A SPM that can be used in any environment

The size of the entire SPM market in Japan in 2005 is estimated as 5.45 billion yen or

ious year. Though from 2003 to 2005, the market share was down by

11.7 points, the short-time trend suggests the market has shown a sign of bottoming out.

In terms of the world market, the Japanese SPM market occupies 30.2% share in 2004, as

estimated.


The feature of a SPM include that it allows measurement of minute 3D shapes and

physical quantity distributions, etc., under various environments. Due to this, a SPM is used to

measure a wide variety of specimens. Major demand area includes universities, public and

n ultrahigh vacuum type is frequently used for basic research

urposes. It is also used widely in such general industries as metal, steel, semiconductor,

emistry

an AFM, a friction force mic

scanning optical microscop

between a specimen and

Among them, an AFM is m

SPM

the application environment in present s

method.

Ultrahigh vacuum type: A

■Market Overview

down by 0.9% over the prev

corporate research institutions where a

p

ch /material, precision machinery, electronic parts, raw materials and biology.


＜Ultrahigh Vacuum Type SPMs＞

The market is nearly in a matured condition as most of their users such as universities and

public research institutions have already introduced the system. The future demand may consist of

replacement to a new system and renewal. After national universities and other entities became

independent administrative legal entities, many researchers have become conscious about using

budget (research expenditure). The industry participants view that such a trend has caused

reluctance against purchasing new products among such researchers. In many cases, researchers

order a SPM customized to their research purposes, and it is estimated that such a special

11

specification SPM occupies 30 to 50% of the entire demand for SPMs.

<Atmospheric type SPMs>

Previously, the SPM market was supported by the public demand from universities and

public research institutions. Due to the boom of digital home appliance market, plant investment

was active in such related industries as semiconductor, metal, high molecule, materials and

ectronic

due to the severer market competitions, the price of a SPM tends to low in general.

udging from this, the SPM market is likely to diminish in the near future.


ion of velopment and inspection

f materials of sub-micron (one ten thousandth of one millimeter) to nanometer level. In the

f a SPM including semiconductor, metal, electronic parts and material industries,

is expec

ly used for

search

at the application and market of SPMs are expanded.

Ulvac-Phi, Inc.

Foreign

el parts, which pushed up the demand for SPMs. Then, triggered by the inventory

adjustment in digital home appliance industries, the plant investment in the related sector slowed.

In addition,

J

The applicat a SPM extends from research purposes to de

o

conventional users o

it ted to generate a new demand by developing new technologies and products. Apart from

this trend, a new type of application of the microscope has been emerged in biological fields;

observation of organic compound molecules in a solution. Currently, a SPM is main

re purposes, however, in the course of the research results applied for a practical use, it is

expected th

■Major Players

The followings are the major players in the SPM market.


・SII Nano Technology, Inc.


・Tokyo Instruments, Inc.

・JEOL Ltd.

・

・Unisoku Co., Ltd.

・Toyo Corporation

［ -affiliated Companies］

・Veeco Instruments


12

3. Confocal Laser Scan Microscope (CLSM)

Fig. 7: Market Size of CLSM


ogic use (a fluorescent CLSM) and

dustrial use (a reflection CLSM). Both types of CLSM are quite different in nature except for

nd the light source. Generally speaking, an industrial-use CLSM is simpler in

tructure

CLSM market in Japan (biological use and industrial use combined) in

lion yen or down by 4.9% over the previous year. From 2003 to 2005,

s down by 3.7 points, suggesting that in a short-time period, its trend is level-off.

of the world market, the Japanese CLSM market occupies 28.4% share in 2004,

gical use CLSM is mainly used for basic research purposes, its major demand

and public and corporate research institutions. In the case of an industrial

use CLSM, it is mainly used by universities and public and corporate research institutions. In terms

of private sectors, metal, automobile, liquid crystal, glass, chemical and electronic parts industries

80.0 81.0 77.0

0.0

45.0

90.0

2003 2004 2005


（year）

2004(100 million

yen ,％)

Japan81

28.4%Overseas

20471.6%

S

Using laser as a light source, a CLSM has a pinhole at a location where specimen and the

pinhole are conjugate with each other and shields unnecessary fluorescent light emitted other than

from the surface of the specimen. By doing so, the image is kept in focus and microscopic

observation is made. The benefit of using a CLSM include that it provides a very sharp and good

contrast image with a small focal depth, as well as a continuous cross-sectional and noninvasive

optical image of a specimen. Reconstructing the images obtained, it also allows 3D analysis of

them.

CLSMs are roughly divided into two applications; biol

in

basic principles a

s and, hence, lower in cost.

■Market Overview

The size of the

2005 is estimated as 7.7 bil

the market wa

In terms

as estimated.


Since a biolo

area includes universities

13

are the main users of CLSM for their research and development purposes.


Conventionally, biological use CLSMs were divided into high-end, middle-end and

low-end use in terms of their functions and prices, as suggested by industrial insiders. More

recently, the market, however, assesses that they are getting polarized into high-end use and low-end

use. Due to the growing interest to spectrum imaging, a non-destructive observation of inside

structures of cell specimens, etc, a CLSM with such function is generally positioned as a high-end

product. The market is on its way of a gradual shrinkage. The reason for this includes that (1) the

market recognizes that, due to universities and public research institutions being shifted to

independent administrative legal entities, they keep reluctant to budget implementation, probably

ent prioritizes and restricts national research budgets and that (2) the

the on-going price competitions in the high-end use CLSM

arket.

It is reasonably estimated that the biological use CLSM market will be shifted to high-end

se orient

are some views that additional demands can be drawn by, in

articular, the development of new applications. Currently, the biological use CLSMs are mainly

purposes. When the research is further developed into a practical stage,

ditional

new

roducts

gh the high price of the products are one of the concerns.

because the Japanese Governm

entire market tends to shrink due to

m

As to the industrial use CLSMs, though the market expanded thanks to the favorable

business conditions of major customers and release of new products, the negative factors are

restrictions in using research budgets and restraints in investment in view of inventory adjustments

in some industries such as electronic parts which is casting a shadow to the prospect of the market.


u ation. It is necessary to attract consumers not only by the price and functions of the

product, but also by diversified applications and fine-tuned after-sale services to differentiate it from

others. In the biological industries, the requirement for observation of live cells and molecules in

cells are underdeveloped, and there

p

used for research

ad usage of the products may be found, which will generate another demand for them, some

estimate.

It is estimated that the industrial use CLSM market will be expanded by launching

p with higher added-values to differentiate them from others in terms of functions and

accuracy, thou

■Major Players

The followings are the major players in the CLSM market.


・Olympus Corporation

14

・Nikon Instech Co., Ltd.

・Keyence Corporation

・Yokogawa Electric Corporation

Foreign

jor companies

ight and fluorescent light from a specimen by scanning on its surface. A NSOM can

rovide h

h observation can be done in

tmospheric environment nondestructively, which is a great advantage in observing structures of a

ganic and biologic materials).

・Lasertec Corporation

［ -affiliated Companies］

・Carl Zeiss Japan

・Leica Microsystems Japan


4. Near-Field Scanning Optical Microscope (NSOM)

Fig. 8: Market Size of NSOM （100 million yen）

0.0

3.0

2.0 2.0 2.0

2004(100 million

yen, ％)

Japan2.0

40.01.0

2.0

Overseas3.0

60.0%

2003 2004 2005 （year）

Source: Hearing to ma

The spatial resolution (the minimum distance of two points that can be recognized as two

separate points) of an optical microscope is restricted to a half of the light wave length (limit of

optical resolution), and theoretically speaking, the conventional microscope cannot provide

resolution of 0.3 µm or below. A NSOM is developed to provide resolution beyond this limit. It

is one of the scanning probe microscopes and uses an optical fiber attached to its edge as a probe,

which emits strong light. At the edge of the probe is a pinhole of less than the light wave length

from which near-field light, a type of electromagnetic fields is emitted. The probe is used to detect

scattered l

p igh resolution microscopic images by changing consecutively the scanning positions.

The largest feature of a NSOM is to use the near-field light emitted from the probe to

provide optical observation of a specimen in nanoscale. Moreover, suc

a

specimen (both or

15

■Market Overview

The size of the NSOM market in Japan in 2005 is estimated as 200 million yen as

me as the previous year. From 2003 to 2005, the market size remained on

arket has not been well established yet, though there is a certain

NSOM market occupies 40% share in 2004, as

nd

A NSOM can be used for broader applications from nanoscale assessment, processing,

etecting fluorescence detection of a single molecule and semiconductor spectroscopic inspections.

lic research institutions and industries such

s semiconductor (microscopic observation and measurement of the surface), electric appliances,

materials and raw materials. In the biotechnology fields, a scanning near-field optic/atomic

microscope (NSOAM) is used for the nano-level observation of cells, protein and DNA. NSOAM

is a microscope combined with the functions of a NSOM and an AFM.


Backed by a surge of the demand for nanoscale specimen observation along with the

progress of fine processing technology, such as semiconductors, the NSOM market has been formed.

The market share between the universities and public research institution sector and the general

as almost same. The users mainly use NSOMs for their research

erally disseminated in research functions of corporations as the

ajor users, the growth of the NSOM market stays flat recently.

logy.

hen suc

estimated, which is the sa

the same level, suggesting that the m

degree of demand.

In terms of the world market, the Japanese

estimated.

■Major Field of the Dema

d

Major demand field mainly includes universities and pub

a

industrial sector is estimated

purposes. As the products have gen

m


Using a NSOM often requires a certain level of skills in reproducing and interpreting

NSOM images and hence, a user should be a good level of expert in using it. In order for the

market to grow in the future, it is necessary to overcome some problems inherent in the microscope

such as that it takes for a certain time to obtain an image in spite of its resolution power of several

folds of that of CLSM.

A probe is an integral part of a NSOM that greatly affects the performance of it. Recently,

there are some studies for producing it in a more efficient way using micromachines techno

W h studies result in development of a low cost and high quality probe, it is expected that the

NSOM market will be revitalized just in the same way that a launch of high quality and low cost

cantilever opened the door for disseminating AFMs.

16

■Major Players

The followings are the major players in the NSOM market.

ies］

JEOL L

rder)

. Micro Raman Measurement System

g. 9: M

Heari

weak scattering lights whose

wavelength is changed by reaction with the substances (Raman’s diffusion). Raman spectroscopy

e the molecule vibration information contained in such weak scattering light

provi

icro Raman measurement system includes that (i) its resolution

er of ap

［Japanese Compan

・ td.

・JASCO Corporation

・Tomoe Engineering Co., Ltd.

(Listed in random o

5

Fi arket Size of Micro Raman Measurement System

Source: ng to major companies

A micro Raman measurement system is a merger of the Raman spectroscopic analysis

method and a microscope, used to analyze locally the composition and conditions of crystallization

of a specimen. Shooting visible rays to substances causes diffusion to a part of the rays. Though

most of such diffused rays are the visible rays shot, there are

is a method to analyz

and des information about chemical composition and crystal structure of substances. As the

Raman’s diffusion is quite weak, it has been impossible to capture it. However, the recent

development of small-in-size laser emitting machine and CCDs used for detecting it has cleared a

way to significantly advance the micro Raman measurement system.

The advantage of a m

pow prox. 1μm is far higher than that of an infrared spectrometer which is in the same

category as a micro Raman measurement system and has a great effect to measure micro materials,

(ii) it allows near nondestructive analysis and ,in many cases, assessment of the surface and internal

structure of a specimen can be done without sampling and (iii) it allows wide application from

16.5

18.0 20.0

0.0

10.0

20.0

2003 2004 2005


2004(100 million

yen, ％)

Japan18

18.0

Overseas82

82.0%

（year）

17

chemical composition analysis to crystal structure information analysis.

Japan in 2005 is estimated as

.1% over the previous year. From 2003 to 2005, the market size was up

, suggesting that in a short-time period, the market is steadily shifting at the annual

market, the Japanese micro Raman measurement system market

as estimated.

Major Field of the Demand

easurement of mini-region stress and foreign matters and

rystallization assessment of semiconductors, polymer componential analysis and blend assessment,

hemical analysis (enzyme analysis and

chemical compound study), flat panel displays, metal, surface treatment, crystal polymorphs and

foreign matter measurement of drugs, and live cell observations. It is also used by police for

explosives analysis and opium analysis. It is estimated that the ratio of the system used by public

research institutions and laboratories and by private sectors is approx. 40% for the former and

approx. 60% for the latter. Approx. 80% of the entire demand from the private sector is for carbon

materials such as nanotubes, semiconductor-related products and chemical products (polymers, etc.).


Micro Raman measurement system once not been fully utilized because of the difficulty in

ly improved its functions thanks to (i) the enhanced

e improvement of CCDs, (ii) smaller-in-size due to the

ancem

■Market Overview

The size of the micro Raman measurement system market in

2.0 billion yen or up by 11

by 21.2 points

growth of approx. 10%.

In terms of the world

occupies 18% share in 2004,

■

The system is mainly used for m

c

identification and foreign matter contents of minerals, c

handling has recently been dramatical

ionalities of detector with thfunct

adv ent of detectors, and (iii) upgraded removing filters of Rayleigh scattering rays. Because

of such improvements, many researchers have been paying attention to the system for advanced

study applications in various fields.

Where a Fourier transform infrared spectroscopy (FT-IR) was conventionally applied such

as componential analysis and crystal structure analysis, more recently, along with a rapid

advancement of manufacturing and processing technologies, a minute level measurement beyond the

limit of FT-IR has been needed. A micro Raman measurement system that has spatial resolution 10

times larger than that of FT-IR has been used in lieu of it.

Some manufacturers try to produce a user-friendly micro Raman measurement system to

generate demands, as there are some applications common to both FT-IRs and micro Raman

easuremm ent system.

18


While requirements for the system are diversified from research and analysis industries,

there has been a trend observed to embed multiple functions in one unit. As a result, a micro

Raman measurement system embedded with the functions of SEMs, AFMs or NSOMs has been

emerged. The price of a micro Raman measurement system is approx. twice as that of a FT-IR. In

rder for the system to maintain the price, while trying to expand the market by drawing needs for

the system, it is essential that the system should be more value-added. The

dustry p

y. Whether the system can build a competitive advantage in the market or

t woul

lls invented by a university-launched venture is getting

cused as a new approach of a live cell study that has been quite actively conducted in the world.

Major P

Foreign-affiliated Companies］

n

Renish

o

replacing FT-IRs to

in articipants see that the direction toward a complex system will be accelerated in the future.

Though a micro Raman measurement system has a long history, not a long time has lapsed

since it is utilized in full scale. Spectrum database of various specimens, therefore, has not been

accumulated satisfactoril

no d depend on how the database can be improved in the future. A micro Raman

measurement system for unstained live ce

fo

■ layers

The followings are the major players in the micro Raman measurement system market.


・Hitachi High-Technologies Corporation

・Tokyo Instruments, Inc.

・Nanophoton Co., Ltd.

・JEOL Ltd.

・JASCO Corporation

・Horiba Jobin Yvon

［

・Thermo Electron Corporatio

・ aw KK


19

6. Particl

Particle System Characterization Machine

Particles in liquid are considered as making an irregular movement (Brownian movement).

radiated to scatter the particles, the frequency of the diffused light makes a slight

ibration the

d of determining the particle distribution by measuring the particle

tion and the size of the particles is called a dynamic light

fusion system has a wider measurement range in one time, and allows

ly reproductive and high resolution results with a short time of periods. In addition it

ng environment, whether it is wet or dry, and is superior in handling

ws unmanned operation such as on-line measurement. Due to such

tem is the mainstream of particle-size distribution systems.

particle system characterization machine market in Japan in 2005 is

estimated as 2.6 billion yen or up by 7.4% over the previous year. From 2003 to 2005, the market

size was up by 23.8 points, suggesting that the market is shifting at an annual growth ratio of more

than 10% in a short-time period.

In terms of the world market, the Japanese particle system characterization machine

market occupies 20% share in 2004, as estimated.

e System Characterization Machine

Fig. 10: Market Size of

21.0 24.2 26.0

0.0

10.0

20.0

30.0

2003 2004 2005 （year）

2004(100 million

yen, ％)

20.0

（100 milion yen）n

.2Japa24

%

Overseas96.8

80.0%


A particle system characterization machine, in this report, refers to a machine used for

measuring particles of less than 100 nm

A particle measurement system is used to measure the particle diameter and particle-size

distribution of powder, and is categorized into two; a dynamic light scattering system and a laser

diffraction system.

When a laser is ir

v due to the irregular movement of the particles. The velocity of particles depends on

size of them. The metho

diameters from the relationship of the vibra

scattering system.

Whereas the laser dif

obtaining high

doesn’t choose the usi

performance and allo

advantages, the laser diffraction sys

■Market Overview

The size of the

20


The system is mainly used in such areas as pharmaceuticals, cosmetics, foods, electric

appliances, new materials and raw materials in addition to catalyst, paint, coating agent and other

nano-chemical field. It is overwhelmingly used by private sector. It occupies 90% in the entire

system market.


While a particle system characterization machine of micrometer level has been widely

used in the in-process quality control purpose, a nanometer level system is mainly used for research

and development purposes currently.

vel particle measurement such as

s, pigments and proteins, the particle system characterization

arket is growing.

cle measurement. Product functions are tend to be valued

ther tha

Busines

hen nanotechnology study makes a progress and its resulting products are

arketed

Japanese Companies］

s Co., Ltd.

Sysmex

Horiba

As the system expands its scope of application to nano-le

carbon nanotubes, fullerenes, cosmetic

m

End-users select the system mainly based on (i) wide variety of applications and (ii) the

know-how of the manufacturers on parti

ra n the price. It is getting difficult to maintain the sale price because of severe competitions

taken place in the market.

■ s Prospects

Since it is unlikely that end-users stop or reverse their idea to seek more small-in-size

products , it is observed that the market tends to grow steadily for the time being.

Judging from the fact that particle system characterization machines are mainly used for

research and development purposes, the demand of the machines for quality control applications can

be expected if and w

m .

■Major Players

The followings are the major players in the particle system characterization machine

market.

［

・Otsuka Electronic

・ Corporation


・Nikkiso Co., Ltd.

・Japan Laser Corporation

・ , Ltd.

21


・Beckman Coulter

ig. 11: Market Size of FIBs

to irradiate ion beam concentrated to 5 to 10 nanometer to a specimen.

sing the interaction of the ion beam and the specimen, it provides the following functions: (1)

en surface by capturing secondary electrons emitted from energized specimen,

) Cuttin

It is used for

size of the FIB market in Japan in 2005 is estimated as 11.6 billion yen or up by

7% over the previous year. From 2003 to 2005, the market was up by 42.3 points, suggesting

e period, the market is on the expansion trend of more than 20% in average.

used in research purposes by universities and public research institutions

o private sector applications including semiconductor-related industries,

(magnetic heads) and analysis services. In terms of application, they are

nt of specimens before transmission electron microscopy.


7. Focused Ion Beam System (FIB)

F


A FIB is a system

U

Observation of specim

(2 g a specimen by irradiating and scanning highly energized ion beam on it and (3)

Deposition of a ultra-fine carbon or tungsten structure on a specimen surface.

pre-treatment of specimens for electronic microscopy.

■Market Overview

The

13.

that in a short-tim

In terms of the world market, the Japanese FIB market occupies 48.1% share in 2004, as

estimated.


FIBs are mainly

and laboratories, in addition t

electric appliance parts

mainly used for pre-treatme

81.5

102.0116.0

0

（

120

60

2003 2004 2005 （year）

100 million yen）

2004(100 million

Japan102O

.9%

verseas110

51yen, %) 48.1

22


Along with the dissemination of SEMs and a launch of a large-sized silicone wafers (300

neral is steadily expanding. The driving force of this seems to be the

ccelerated needs for replacing conventional FIBs with a complex machine of a FIB and a SEM in

e semiconductor industries which requires highly functional machines. On the other hand, the

r low value-added units are getting severer.


The future business prospect of the market would include (i) expansion of the demand for

high-end complex machines with SEMs, etc, (ii) expectation to generate synergy effects of the

demand by dissemination of SEMs and (iii) further advancement of microfabrication technologies.

■Major Players

The followings are the major players in the FIB market.


・SII Nano Technology, Inc.

JEOL Ltd.

Hitachi

mm), the FIB market in ge

a

th

negative factor includes, the demands fo

・Elionix Co., Ltd.

・Tokyo Electron, Ltd.

・

・ High-Technologies Corporation


・FEI Company Japan Ltd.


23

8. Surface Smoothness Measurement System Fig.12: Market Size of Surface Smoothness Measurement System

Surface smoothness measurement system, in this report, refers to mainly a surface

ement system.

and parts, such as “roughness,”

arity in shape” are closely related to functions of the products and parts.

rement system occupies an important position as a measurement and

f such minute surface structure. As the ultra-fine processing technology is

the trend of complex and fineness of products and devices, the resolution of

hness measurement system has been improved. In order to respond to the demand of

utting surfaces, noncontact measurement has been

sment method makes a shift from a single cutting surface

ment for assessing the entire surface of a certain size, the system with

ized broadly.

Market Overview

The size of the surface smoothness measurement system market in Japan in 2005 is

estimated as 1.5 billion yen or up by 10.3% over the previous year. From 2003 to 2005, the market

was up by 18.1 points, suggesting that even in a short-time period, the market is on the expansion

trend of approx. 10% annually.

In terms of the world market, the Japanese surface smoothness measurement system

market occupies 32.8% share in 2004, as estimated.


The demand of surface smoothness measurement system mainly derives from


roughness measur

Physical properties of the surface of industrial products

“unevenness” and “irregul

A surface smoothness measu

assessment device o

sophisticated along with

surface smoot

measuring soft materials and ultra-precision c

generally applied. As the asses

measurement to 3D measure

such function has been util

■

12.7 13.6 15.0

0.0

10.0

20.0


2004(100 million

yen,%)

Japan13.632.8Overseas

27.967.2%

2003 2004 2005 （year）

24

semiconductor industry (for foreign matter inspection of wafers and pattern defect inspections),

CDs and PDPs color displays and IT-related equipment such as magnetic discs, optical discs and

processes. The demand for 3D

roughness measurement is high for such application as base films of video tapes and hard discs.

Especially, in terms of nano-level measurement, the system is indispensable for research,

development and manufacture of MEMS (Micro Electro Mechanical System) and other

next-generation devices.

It is roughly estimated that the ratio of the system used by universities and public research

institutions and by industries comes to 2:8.


In general, the measurement device market is vulnerable against economic conditions.

moothness measurement system that is more often used by

m ing industries. The market of surface smoothness measurement system makes a steady

ift rece

ted industries have been slowed reflected by the sense of saturation

the digi

c manufacturers. Many of such domains of industries

xpects upturning of consumption trends toward 2008 Olympic Games in Beijing, China, and it is

rket of surface smoothness measurement system will make a growth along with

e major players in the surface smoothness measurement system

arket.

Canon Inc.

itsuto

L

optical fibers. It is also widely used in in-process inspection

The same can be said to surface s

anufactur

sh ntly, thanks to the booming of auto-related and machining tool industries, through plant

investment by semiconductor-rela

in tal home appliance market.

The expansion of the market may have been attributable to the launch of the series of new

products with sophisticated technologies into the market, such as the system having high vertical

resolution of up to 0.1 nm and that of high precision and low vibration performances.


It is estimated that the surface smoothness measurement system market will shift in the

future influenced by the trend of major users such as digital home electric appliances and LCD

products (flat-screen television, DVDs, mobile phones with a camera and PCs), semiconductor

industries, auto industries and hard dis

e

foreseen that the ma

it.

■Major Players

The followings are th

m


・

・Tokyo Seimitsu Co., Ltd.

・M yo Corporation

25


・Veeco Instruments

・Taylor Hobson K.K.

・Mahr Japan

(L random order)

isted in

ig. 13: Market Size of Data Analysis Software

■Market Overview

alysis software, in this report, includes package software products under the

ensed s

stimated.

e Demand

y and pharmaceuticals for their research purposes including molecular modeling, molecular

lation and molecular force field calculations. In some industry, such as

and automobiles, the software is used from conventional basic research purposes

ses.

9. Data Analysis Software

F


The data an

lic ales used for molecular design, molecular modeling, molecular simulation, data analysis

and other computational chemistry software.

The size of such software market in Japan in 2005 is estimated as 3.5 billion yen or up by 16.7%

over the previous year. From 2003 to 2005, the market was up by 34.6 points, suggesting that in a

short-time period, the market tends to grow.

In terms of the world market, the Japanese software market occupies 25% share in 2004,

as e

■Major Field of th

The software is mainly used by such industries as semiconductor, materials, raw materials,

chemistr

simulation, quantum calcu

electric appliances

to applied development purpo

26.030.0

35.0

0

10

20

30

40

2003 2004 2005


）

2004(100 million

yen, %)

Japan30

25.0Overseas90

75.0%

（year

26


Recently, the software has been broadly introduced to consumer goods manufacturer such

nd automobiles, suggesting that the user base is on its way of expansion.

on of the needs for complex materials such as a combined use of resin and metal.

hat the demand from universities and public research institutions occupies

0% of the entire software market, mostly for basic research applications. After universities and

ublic research institutes became independent administrative entities, they are required to produce

activities. Under such circumstances, it will be unlikely that they

urchase expensive software for basic research, etc., that is not directly connected to a practical

application of its results. On the other hand, use of superb and excellent research system is a good

sales point of universities and public research institutes. Thus, the research system that is highly

assessed by researchers and other users tends to gain higher demand.


The industry participants expect that the demand and the market itself for the related

software will grow when more industries introduce or use proactively nanotechnology materials and

raw materials as they are disseminated in the industries. A good example of this would be auto and

electric appliance industries.

trend that the analysis database, conventionally

ment module, are connected with a data sending/receiving

odule to make a grand knowledge database of a company or a research institute. Judging from

at the market still has a room of further growth, when the demand from such

iddlewa

Cybern

poration

Marubeni Solutions Corporation

Sumish

as electric appliances a

This is a reflecti

It is estimated t

4

p

higher results in their research

p

In addition, there have emerged a

constructed independently by develop

m

this, it can be said th

m re is taken into consideration.

■Major Players

The followings are the major players in the data analysis software market.


・Limited Company AdvanceSoft

・ et Systems Co., Ltd.

・Fujitsu Cor

・

・Ryoka Systems, Inc.

・ o Computer Systems Corporation


・Accelrys Software Inc.


27

C. Industry Map

are

Japanese companies are dominant in the entire market, in terms of the number of players.

They are four times more than foreign-affiliated companies. The next table shows major players in

the respective market.

Fig. 14: Major Players Matrix

TEM SEM SPM CLSM NSOM Raman Particle FIB Surface Softw

Limited Company AdvanceSoft ■

Ulvac-Phi, Inc. ■ SII Nano Technology, Inc. ■ ■ ■ ■ Elionix Co., Ltd. ■ ■ Otsuka Electronics Co., Ltd. ■ Olympus Corporation ■ Keyence Corporation ■ ■ ■ Cybernet Systems Co., Ltd. ■ Sysmex Corporation ■ Shimadzu Corporation ■ ■ ■ Sumisho Computer Systems Corporation ■

Tokyo Instruments, Inc. ■ ■ Tokyo Electron, Ltd. ■ Tokyo Seimitsu Co., Ltd. ■

Japaneom

paniese c

s

Toyo Corporation ■

Tomoe Engineering Co., Ltd. ■

Nanophoton Co., Ltd. ■ Nikon Instech Co., Ltd. ■ Nikkiso Co., Ltd. ■

Japan Precision IInc.

nstruments, ■

JEOL ■ Ltd. ■ ■ ■ ■ ■ ■ ■ JASCO Corporation

Japan Laser Corporation ■

Hitachi High-Technologies ■ Corporation ■ ■ ■

Fujitsu Corporation ■ Horiba Jobin Yvon ■ Horiba, Ltd. ■ Mitsutoyo Corporation ■ ■ Unisoku Co., Ltd.

Ryoka Systems, Inc. ■ Lasertec Corporation ■

Yokogawa Electric Corporation ■

Marubeni Solutions Corporation ■

28

TEM SEM SPM CLSM NSOM Raman Particle FIB Surface Software

Accelrys Software Inc. ■ Carl Zeiss Japan ■ ■ ■ Thermo Electron Corporation ■

Taylor Hobson K.K. ■ FEI Company Japan Ltd. ■ ■ ■

Foreign-affi

Veeco Instruments ■ ■ Beckman Coulter ■ Mahr Japan ■ Leica Microsystems Japan ■

liatem

panies

■

d co

Renishaw KK Raman easurement system rticle rticle system cha terization machine Surface rement m Software: Data a lysissoftSource: Hea mpanies and inf rmation disclosed by each company

: Micro Raman m Pa s: Pa rac: Surface smoothness measu syste

ona ware

rings to major co

29

D. Major Study Projects o n h g

materials an rodu rela d to n tech logy are grow i ti al use,

a rch and deve pmen tiv ies of nanote hnolo a co ucted The

na ch and de lopment pro ts ar important for e nanoscale equip t for

vis ment i ener demand for them This chapter utlines major public

res nanotechno ma rials lating o it.

[R to Mi try of a n, C ure, S orts, Science a Tec logy

■ Imaging Resea s the nistry’s efforts to promote research and

for SPMs, CLSMs, micro Raman

measurement systems can be expected for living cells observation and molecular imaging

applications.

○ Identification of Candidate Materials for the Design of New Drugs and Medications (Riken

Japan)

A hub of efficiently identifying candidate materials for new drugs (seed molecules) is

established in Riken where molecular imaging technology is heightened and utilized in

full-scale by a merger of the world advanced chemistry, biology and medicine. Riken will

be a place where a system for a new chemical reaction and synthesis machine applicable for

exploring, creating short-lived radioisotope marking of candidate molecules for new drugs as

well as assessment of advanced in vivo kinetics and functional assessment and advanced

imaging tools. Riken is aiming to develop a center of world-class molecular imaging

through establishing a nation-wide research network and nourishing experts.

○ PET Research Center (National Institute of Radiological Sciences）

As a hub of studying pathologic conditions and establishing therapy evaluations by the use

of molecular imaging, the center develops the world-highest class foundation technologies

and establishes a disease diagnosis research support system, where researchers from various

academic fields gather and use technologies and facilities. In addition, the center will

cooperate with the researchers to conduct the state-of-the-art disease diagnosis study to send

and transfer the results, technologies and human resources to universities and medical

institutions, whereby the center can contribute to the development of molecular imaging

research and medical standard in Japan.

■ Research and Development of the Next-Generation IT Foundation

The following study projects are for research and development about the technology to

realize an ultra high performance computer which can demonstrate high-level computation

n Na otec nolo y

While raw d p cts te ano no ingly n prac c

num

not

ual

ear

ese

ber of resea lo t ac it c gy are lso nd .

echnology resear ve jec e th men

ization and measure n g ating . o

ch activities on logy te re t

arch Projects Related nis Educ tio ult p nd hno ]

Molecular rch Program (a Mi

development in life science fields that respond to real societal needs)

In the projects related to life science, the demands

30

including a simulation, and about a software responding to such new technologies. It may

possible be seen that development of these projects and outcome from those studies generate

a

Advanced computational science such as advanced simulations using a super computer is

and

ndation for sustainable

de

ch and development of Petascale System Interconnect (PSI) Technology (Computing

earch and development of optimum operation efficient methods via IP based network

○ R

for Industrial Science

■ R

M

f

s of industry and academia in such advanced

industrial area of the merger between nanotechnology materials and other domains of industry.

vanced seeds technologies

thro

demand anew in the markets of nanoscale equipment for visualization and measurement

using a high performance computer and a related software. Simulation science and

technology is indispensable for the development of numerous industries including

automobile, aircraft and semiconductor, and is considered to perform as a breakthrough of

broader science and technology in the 21st Century.

considered as the third method of science and technological research, following to theory

experiments.

There's the high expectation that it is developed as a fou

velopment of science and industry.

○ Research and Development of Element Technology for the Future Super-Computing

• Resear

and Communications Center, Kyushu University)

• Res

interconnection within parallel computers (Graduate School of Information Science and

Technology, The University of Tokyo）

• Research and development of low-voltage high-speed device, circuit technology and logic

system (Hitachi, Ltd.)

• Research and development of optical interconnection for super high-speed computers

(NEC Corporation)

esearch and development of innovative simulation software

• Research and Development of Frontier Simulation Software

（Collaborative Research Center of Frontier Simulation Software for Industrial Science,

University of Tokyo）

esearch and Development of New Business Domains a Merger of Nanotechnology and

aterials

Expecting for the realization of products and services in the nanotechnology field as the

inal target, this research and development project aims at producing technical innovations and

ynergy effects by the collaborative efforts

It is expected that private sectors gain the chance of developing ad

ugh the project.

31

○

○S

○ Na

○ ation research network sites based on the collection principles of life-giving

yushu University, Hokkaido University and Osaka

[Research Welfare]

■ Na

nanote emands especially for living cell observation,

mole

○

[F searcher is appointed] National Cardiovascular Center

Development of functional and structural alternative organ using nanotechnology

vascular Center

○

[F

○ D noparticles

acility where chief researcher is appointed] Research Institute International Medical Center

○ n development and assessment of nanomedicine utilization foundation database

F

○

○

y using ultra fine molecular probe

[Facility where chief researcher is appointed] Graduate School of Science and Technology,

Development of the next-generation programmable logical operation device using atomic

switch

［Participating Organization］The University of Tokyo, NEC Corporation and Institute for

Molecular Science in the National Institutes of Natural Sciences

uper Optical Information Memories with Nano-structured Magnetophotonic Crystals

［Participating Organization］FDK Corporation, Optware Corporation, Memory-Tech,

Kyoeisha Chemical Co., Ltd.

no-Bio integration research

［Researching Organization］The University of Tokyo

Molecular inform

molecules

［Researching Organization］Riken, K

University

Projects Related to Ministry of Health, Labor, and

nomedicine

Aiming at promoting research and development of advanced medical technologies using

chnology, this project may generate d

cular imaging or high-molecular compound modeling applications as explained above.

Analysis of functions and structure of molecules using nano-level imaging

acility where chief re

○

[Facility where chief researcher is appointed] National Cardio

Development of microforceps and catheters and their handling technologies

acility where chief researcher is appointed] National Cancer Center

DS by semiconductor na

[F

of Japan

Research o

[ acility where chief researcher is appointed] Japan Association for the Advancement of

Medical Equipment

Development of biological polymer delivery system using bionanoparticles

[Facility where chief researcher is appointed] GenomIdea Inc.

Analysis of organ reproduction and curing mechanism of development of high precision local

diagnosis technolog

32

Keio University

Implanta○ ble ventricular assist device (VAD) using nanotechnology

osilane

is appointed] Saitama University Faculty of Engineering

new DDS formulation using nanotechnology

DS, Jikei University, School of

○ of diagnosing technology for cerebral ischemic lesion using high magnetic field

ere chief researcher is appointed] National Cardiovascular Center

○ Establishment of SNPs analysis of genes affecting cardiac disease and cancers, and gene

chief researcher is appointed] National Cardiovascular Center

○ Re

ering

& Science, Tokyo Women’s Medical University

rn Yokohama

○ ductor gamma

iversity

nosis methods and systems

○ ent and application to medical use of nano-size sensing capsules

u

○ ns of nanotubes, nano-fine particles and micro fine particles, and their

School of Dental Medicine,

○ eproduction; Application for medicine

[Facility where chief researcher is appointed] Institute of Development, Aging and Cancer,

Tohoku University

○ Research on design technology development of Sugar Chain-Containing Carb

Dendrimer Compounds

[Facility where chief researcher

○ Research and development of a

[Facility where chief researcher is appointed] Institute of D

Medicine

Development

NMR and MRI

[Facility wh

diagnosis system using ECA chips

[Facility where

search on clinical development of a system to enhance 5-year survival rate by 20% by

visualizing cancer while in operation

[Facility where chief researcher is appointed] Institute of Advanced Biomedical Engine

○ Research on new way of cancer diagnosis using an endmicroscope

[Facility where chief researcher is appointed] Showa University Northe

Hospital

Research on imaging of molecular pathology using RI molecules and semicon

camera

[Facility where chief researcher is appointed] Faculty of Medicine, Keio Un

○ Research on practical use of gene diag

[Facility where chief researcher is appointed] National Cancer Center Chuo Hospital

Developm

[Facility where chief researcher is appointed] Graduate School of Medicine, Tohok

University

Reactions against orga

application to bioscience

[Facility where chief researcher is appointed] Graduate

Hokkaido University

Nanomanipulation of cell functions, organ repair and r

of nanodesign and nanoprocessing technology of materials having reproductive function

33

[Facility where chief researcher is appointed] Graduate School of Medical Sciences, Kyushu

[Resea

Nanote ee III.B)

E. Ma

es to raise

deman

the tre ir users. The major demand roughly comes from research and industrial

appl

and tec ajor related industries. This chapter examines the future orientation of the

market

the dire rtant is the progress of research and practical application

of nano anotechnology

appl

1. Cur

(1)

designa hnology materials and other 3 industrial fields as the priority fields and decided to

prom

prioriti science and technology aiming at making Japan a nation based on the creativity of

science ived the

budg

University

rch Projects Related to Ministry of Economy, Trade and Industry]

chnology Program (S

rket Prospects

While the market of nanoscale equipment for visualization and measurement tri

ds by developing and launching of new equipment, the direction of it is greatly depending on

nd of the

ications, which directions will greatly impact on the conditions of national budget for science

hnology and of m

from such perspectives.

The whereabouts of the development of product functions is one of the decisive factors for

ction of the market. Equally impo

technology. In order to understand the long-term trend of the direction of n

ied to industries, the movements of nanotechnology shown by industries are glanced as well.

rent Direction of the Industry

Budget for Science and Technology

In 2001, the Council for Science and Technology Policy of the Japanese Government1

ted nanotec

ote allocation of budget to these domains, in a course of the government’s strategic

zation of

and technology. Since then, the domain of nanotechnology materials has rece

et of more than 9 billion yen annually for its research and development.

1 As an the Cabinet Office, the Council for Science and Technology Policy aimstechnolo

organization set up in at planning, proposing and comprehensive coordination of basic and total Japan’s science and

gy policy for the benefit of the entire science and technology development in Japan.

34

Fig. 15:

ence and Technology Policy Meeting (February, 2005)

While most budget items shows a negative growth due to the tight financial conditions of

f promoting science and technology in the national budget

ompilation for 2006 filed in December 2005 is 1,331.2 billion yen or year-on-year increase of 1.1%,

e budget for science and technology was one of the few

ms tha

(2) Major Field of the Demand

The estimation made by Japan Electronics and Information Industries Association (JEITA)

shows in its outlook of manufacturing electronic products in 2006 that production of electronic

products in Japan such as plasma television sets, mobile phones and electronic parts will make an

upturn backed by the completion of production adjustment in IT industries and on-going trend of

business recovery, though there is a slight concern in the uncertainty of oil price, etc. The domestic

ile

l

e, LCD

Trend of Science and Technology Budget (Nanotechnology Materials) Flash Report

Source: The 43rd Council for Sci

rowth

84.991.1 94.6 93.5 97.1

3.93.8

60

100

3.0

4.0

5.0

6.0

7.0

8.0

（％）

7.3120

The budget for science and technology from FY2002 to FY2005 increases and maintains

the level of 9 billion yen, except for FY2004 when the amount showed a year-on-year decrease of

1.2%.

the Japanese Government, the outlay o

c

or 14.2 billion yen in monetary basis. Th

ite t gained budget increase over the previous year. Among the budget for science and

technology, the amount allocated to nanotechnology materials, for example, in terms of the itemized

budget by the Ministry of Education, Culture, Sports, Science and Technology (MEXT) was 30.92

billion yen, up by 2.57 billion yen over the previous year. (The total budget allocated to the entire

domain by the Ministry is unknown at the time of the survey.)

（See Ⅲ.A. 'Formation of Basic Program for Science and Technology'）

production as a whole of electronic products is estimated to grow 2.3% over the previous year, wh

each of electronic equipment for civilian use, domestic use and electronic parts and devices wil

ake a growth of 2% level (See Fig. 16). In terms of electronic equipment for civilian usm

Annual

g

80

-1.2

0

20

40

FY2001 FY2002 FY2003 FY2004 FY2005

-2.0

-1.0

0.0

1.0

2.0


35

television and plasma television sets are estimated to make a double digit growth of 11.3% and

20.0% respectively, while in the field of electronic equipment for industrial use, mobile phone

production will make a year-on-year growth of 7%. In addition, in terms of electronic parts and

devices, electronic tube production is estimated to make over 20% growth. On the other hand, the

production of video camera, electronic computers except for personal computers and devices rela

to them, business machines and conversion electronic parts is considered to be lower than e

previous year.

Fig. 16: Trend of Electronic Products Manufacturing in Japan

manufacturing devices in FY2006 is

-on-year, after continual

ecrease since FY2004, as announced by Semiconductor Equipment Association of Japan in January

continuous increase in demand of semiconductor memories for

ortable m

ting

th

10,000

20,000

25,000

15,000

0

5,000

Civilian use products 2,488 2,545 2,608

2004（actual） 2005（estimation） 2006（estimation）

（billion yen）

19,746 18,962 19,389

Industrial use products 7,481 7,250 7,398

Electronic parts anddevices

9,777 9,167 9,383

Source: Outlook of electronic product manufacturing in 2006 by JEITA

As semiconductors and products related to them are measured and assessed using the

nanoscale equipment for visualization and measurement, the prospect of semiconductor

manufacturing devices causes tremendous impact on the future of the visualization and measurement

equipment market. The sales of made-in-Japan semiconductor

expected to be 1,589.8 billion yen (incl. export) or 8% increase year

d

2006. The ground for this is a

p usic players. They foresee that plant investment by portable music player industries will

propel the growth in this business sector. With a prospect of demand increase for semiconductors

in digital electric appliances toward 2008 when Olympic game is held in Beijing, China, it is

expected that the industry will make a growth.

36

2. Technological Trend of Nanotechnology

Nanotechnology Business Creation Initiative, an organization for exploring new industries

by matching nanotechnology, a 21st Century industry, presented a road map describing how

nanotechnology is applied to the industries (the NBCI business strategy road map). To interpret the

road map, minimum level of technical knowledge may be required, but it shows not only the

prospect of nanotechnology, but also how it is applied to businesses. In this sense, the road map is

ighly indicative of considering application of the technology to future industries.

Fig. 17: Technological Direction of Nanotechnology

New materials and processes for LSI

h

General outlook

1. Merger of a nano-level CMOS device and a 3D nano-level mounting technology 2. Superconnect wiring by bottom-up type nanotechnology 3. From miniaturization and high-integration to hyper-miniaturization

Technological trend and expected products

Technological trend:

Maintenance of miniaturization of a LSI structure and merger of LSI and a 3D nano-level mounting technology accelerates the process of highly functional, low electricity consumption, and small-in-size products

Expected products:

1. Highly integrated SOC/SIP for multi-functional wireless equipment supporting the car entertainment

hop sensors that function as iquitous society

society 2. Micromini LSIs for multi-a terminal and node in the ub

Elemental tech

Nano-level 1. Circuit board: Rapid progress expected in SOI-type nology CMOS circuit boards and vertical type device technology, for

enhancing carrier mobility and controlling characteristic variances 2. Lithography: Will make a progress centered on immersion ArF technology. At the same time, it will shift to the EUV technology. 3. Gate: Points are the introduction of new material Hf and La gates and surface control engineering. New material metal gate is a must for gate electrodes

Superconnect wiring

1. Wiring technology: Ultimate local wiring and global wiring will shift to atomic-level control metal wiring and then CNT wiring to eliminate losses at a maximum 2. Interlayer film: To use porous materials. Local wiring will shift to low-k by using Air-Gap process

37

3D nano-level 1. Bonding chips into packages: Toward direct bonding ing the chip wiring rules

ilt-in parts: From built-in parts in a package and circuit board to MEMS

mounting technology

us2. Bu

3. Printed circuit board: Low dielectric constant by porous board and high magnetic permeability applying nanotechnology drive significant low loss ratio

Measurement and assessment equipment Area Carbon nanotube

measurement 1. Enhanced sensitivity of spectroscopic analyzers 2. Enhanced resolution of SEMs and TEMs 3. Establishment of multiple analysis methods

Subjects Mixture of single CNT→ Highly pure single CNT Measurement (i) Purity

(ii) Shape and characteristics of single CNT (diameter, length and chirality of a tube)

(iii) Mixture analysis (chirality distribution measurement) g

method troscopy((i) and (ii))

is ((

Measurin Raman specNear-infrared photoluminescence spectroscopy((ii) and (iii))SEM and TEM（(ii)） Thermal analys i))

M t and assessment equipmeneasuremen t Nanosilicon materiaArea ls measurement Background e paras

miniatur2. Improvement amental technology toward nano-CMOS is imperative.

1. Due to thfor further

itic capacity, etc., conventional technology is not viable ization of fund

Development 1. Development of rs ent of target

sub-nano level high resolution isotopic analyze2. Developm high performance nanosilicon simulators

wanted

ble isotope 2. High performanc

Technology 1. Si sta (30Si) marker e isotope analyzing technology

Ultra-high precision manufacturing and processing Area Nanoimprinting

technology ing methods and materials 1. Pursuit of miniaturization and production efficiency 2. Diversification of transcrib

Pulse laser processing technology

1. From 2D to 3D miniaturization 2. Merger of other processing technology

Airplane and Transp Equipment ortation

38

Manufacturing policy ntal load pment and requirement of

lighteexamined. 2. Fuel efficiency tairplanes

1. Based on the soenvironmeairplane for

cial requirement for enhanced fuel efficiency and low of the transportation equi

r body, areas based on light and strong materials are

arget for 2020: by 50% for automobiles and by 30% for

Challenges 1. Depletion of iron2. Cooperation among university, industry and administration for efficient

ment

ore, fossil fuel and other natural resources

technological develop Area Automobile 1. Low fuel consumption by new energy and

vigation technology

light-in-weight car body 2. Enhanced safety and comfort by providing naassistance and automatic driving

Airplane 1. Light-in-weight body using CNT composite

t materials

2. Improvement of conventional CFRP characteristics→ multi-functional 3-phase nanocomposite 3. Merger with nanoelectronics→ smar

Engine for 1. To withstaaerospace planes nanometal

nd high temperature using heat-resistant

Higher fatigue withstanding performance of at-resistant alloy for engine (nanostructure)

2. Highly rigid structural materials (light alloy and omplex materials)

material technology that can be used to

Rocket 1.he

c3. Highly reliablea manned rocket

Space satellite 1. Highly rigid structural materials for space satellites technology and manned

2. Improved compatibility with the space environment of exposed members

aerospace plane 3. Low hazardous incombustible technology of mtechnology used in the manned environment

aterials

So c ines otechnology Business Creation Initiative

ur e: “NBCI bus s strategy roadmap Ver. 1” by Nan

39

3. B b

The direction notechnology product market is highly affected by the trend of

plant investment by

products) and their co and devices, elements and raw materials, and the condition of

nat n mpl

frequently used by univ institutes tend to be gloomy. On the other hand,

the of SEMs a oothn

growth due to the demand of digital s, LCDs, semiconductors and

automobiles toward 2008 Olympic Games

product categories of g plant i ales price

decrease.

For SPMs, CLSMs (for biologic

growth in the market

As not a long time has cr easurement system was practically in use, the

focus is being on the ation of th

near-field scanning optical microscope. In

necessary to accumulate enough database m for micro Raman measurement

system and to develop probes for near-field

As to software for data analysis rket for this product will grow or not

dep n s on increase in

functions such as a mod ting anal

usiness Prospect y Product

of each na

semiconductor, digital home electric appliances (electric and electronic

mponents

io al budgets co ied by the Japanese Government. In general, the prospect for TEMs that are

ersities and public research

markets nd surface sm ess measurement systems is expected to make a certain

home electric appliance

in Beijing, China, with a negative trend observed in such

suppressin nvestment by the manufacturers because of s

al use) and micro Raman measurement system, further

is expected triggere

lapsed since a mi

d by expanded applications in the biological industries.

o Raman m

dissemin e system for industrial application in the future, like a

order for these systems and products to disseminate, it is

on specimen spectru

scanning optical microscopes.

, whether the ma

e d users of nanotechn

ule connec

ology materials and elements and development of new

ysis databases.

40

II. Laws and Regulations

There are no governing laws and regulations in the case of nanoscale equipment for

visualization and measurement, however, the most important to note is in-house standards and

criteria of each user companies, which normally include stricter and higher standard than ISO and

JIS. In this chapter, safety criteria and standards are explained, because they seem to be related

commonly with the participants in this industrial sector.

A. Safety Criteria of Laser Beams

Through laser beams do not accumulate in human body to do harm to it, it can be said as

dangerous to the point that they generally has high energy density and hence the hazardousness to

man bohu dy has to be considered. In order to protect workers from potential hazards of laser

beams, International Electrotechnical Commission (IEC) and other entities establishes a list of

laser-emitting machines by output level as follows.

Fig. 18: Classification of Laser-emitting Machines by IEC

Class Hazardousness Class 1 These are eye-safe under normal operating conditions. Class 1M Similar to Class 1 lasers, these contain lasers with the wavelength of 302.5 nm to

4,000 nm. Viewing directly using magnifying glasses increases the hazard. Class 2 These are visible lasers which wavelength extends from 400 nm to 700 nm. The

hazardousness can be alleviated by just blinking eyes. Class 2M Similar to Class 2 lasers, these are also visible lasers with the wavelength of 400

nm to 700 nm, and hazardousness can be alleviated by just blinking eyes. However, viewing them with the aid of optical instruments is potentially hazardous.

Class 3R These lasers have the wavelength of 106 nm to 302.5 nm and viewing them directly with the naked eyes is potentially hazardous.

Class 3B Viewing them directly with the naked eyes is always hazardous. However, viewing of the diffuse reflection is, normally safe.

Class 4 Radiation of these lasers is always dangerous. They can irritate skins and can set fire to materials onto which they are projected.

Source: Website of Keyence Corporation

The Ministry of Health, Labour and Welfare sets the guideline for prevention of damages

by laser beams.

41

Fig. 19: List of Measures for Laser-emitting Equipment by Laser Class by the Ministry of Health,

abour and Welfare L

Laser Class

2MMeasure (descriptions omitted) 4 3B 3R

1MAppointment of laser equipment controllers ○ ○ ○*1 S ○ ○ etting restricted areas (signs and keep-out)

Path position ○ ○ ○ ○ Approof the p

priate design and shielding aths

○ ○ ○*1 Path of laser beams

Appropriate terminal ○ ○ ○*1 ○*2

Key control ○ ○ E-stops E-stop switch ○ ○

Alarms ○ ○ ○*1 E-stops

Shutters ○ ○ Interlock systems ○ ○

Laser Equipm

○ ○ ○

ent

Injection hole displays Operating position ○ Measures for adjusting optical systems ○ ○ ○ ○

Protection goggles ○ ○ ○*1 Work cloth with less exposure of skins

○ ○

Wor

Protection equipment

○ Use of incombustible materials Maintenances ○ ○ ○ ○ Safety and ○ health education ○ ○ ○

Check of anterior segment of the eye (cornea and lens)

○ ○ ○*1

k and Hntro

c. Medical cealth C

ol, et

heck Fundus examination ○ Laser equipment controller ○ ○ ○*1 Hazardousness/harmfulness and ○ ○ ○ cautions for handling

○ Display

Indication of laser equipment installation place

○ ○

Display o f high tension component No hazard ous materials Measures against hazardous gasses and dusts

Othe

ical tre

rs

Med atment by a physician to workers exposed to laser beams Circles in the ab

equipment emitting laser beams of the wavelength other an 400 nm to 700 nm.

2: Laser equipment shown in Section 10.6 of JIS requires safety measures at the terminal position f laser pa

tion by Director of Labor Standard Bureau, Ministry of Health, Labour and Welfare ed March 25, 2005)

ove table shows safety measures required. *1: Safety measures are required to laserth*o ths. Source: NotificaNo. 0325002 (dat

42

B. Japan Industrial Standard (JIS)

Display of a JIS mark is not mandatory Putting a JIS mark to imported products other

than those under the Technical Regulation of Agreement on Technical Barrie (TBT) is

subject to certifica WTO Standard Code. sh p t

opes, grain size distribution asu ent machines and

Fig. 20: R Japa

Numbers Title

.

rs on Trade

tion by JIS in accordance to the JIS ows roduc standard

to microscopes including electronic microsc me rem

other products.

elated Documents in n Industrial Standard (Excerpts)

JIS K 0132:1997 General rules for scanning electron microscopy

JIS B 9921:1997 Light sc tic particle counter attering automa

JIS B 9925:1997 Light sc tomatic particle counter for id attering au liqu

JIS Instruments for the measurement of surface hness by the

erferometric method

B 0652:1973 roug

int

JIS Information technology -- Computer graphics and i age processi g --

Language (VRML) -- Part unc nal

specifica

X 4215-1:1998 m n

The Virtual Reality Modeling 1: F tio

tion and UTF-8 encoding

Source: Website of Japan Standar ociation

dards Association

Japanese: http://www

: http://www.j .asp

Please note that a ce ould be required for taile

information from the a

ds Ass

Website of Japan Stan

.jsa.or.jp/default.asp

sa.or.jp/default_englishEnglish

rtain amount of fee w de d

bove-listed sites.

43

III. Governmental Measures

A. Formation of Basic Program for Science and Technology

Based on the Science and Technology Basic Law, the 2nd term Basic Program for Science

and Technology, which was positioned as a guideline for the entire science and technology policy for

5 years from the fiscal year of 2001, was decided at a Cabinet meeting in March 2001.

In that Program, four industrial areas were designated to which research and development

ritization of science and

technolo one of the Program's pillars. And “N hnology materials” was included

in t the fo nce and technological

dev

s of th ogy of strategic

pri notec

domains:

i ate

ii) Materials for environ

iii) Microsystems and m iotechnology that utilizes and controls

iv) Fundamental technologies such as measurement, assessment, processing, numerical analysis

and si affect on

v) Substa ovative physical properties and functions

The based on the idea of research and

development election of

fundamental ing this target by identifying items to be

stablished while looking the business prospects 10 to 20 years ahead of time, taking into

consideration that the prioritization of research and development aims at conquering national and

social problems.

Under such basic policies, various projects on nanotechnology are planned and

implemented. In the following pages, two ongoing projects are outlined. These projects have

more than a little impact on the market of nanoscale equipment for visualization and measurement

and the future of the Japanese nanotechnology-related market in general.

In the 3rd Science and Technology Basic Plan starting from April 2006, 62 priority science

and technologies including 5 national core technologies are preferentially invested. The investment

scale for 5 years is planned as 25 trillion yen. In the domain of nanotechnology materials, 10 items

including “Development and public use of X-Ray Free Electron Laser” are chosen in the priority

science and technology.

resources are allocated on a priority basis based on the “strategic prio

gy,” which is anotec

hem that supports undation for making a leap forward of broad scie

elopment.

On the basi e concept of the Basic Program for Science and Technol

oritization, the ‘Na hnology materials’ is further categorized into the following 5 preferential

) Nano-device and m rials for the next generation information communication system

mental preservation and higher utilization of energy

aterials for medical use, and nanob

biological mechanisms

mulation, as well as other areas they may

nces and material technologies that add inn

concept of selecting the priority domains is

aiming at practical use and industrial application within 5 to 10 years, and s

technologies that is mandatory for realiz

e

44

B. Nanotechnology Program

It was in February 2004 when the Ministry of Economy, Technology and Industry set out

s “basic

ology that

an bring

it plan for nanotechnology program.” The aim of the program is to establish technological

foundation for reinforcing competitiveness of the Japanese industries and sustainable development

of Japanese economy through research and development of “nanotechnology,” a key techn

c innovative development to broader technical and industrial fields including making a leap

forward of substance functions, significant energy saving and reducing environmental loads.

Fig. 21: Bird’s Eye View of Nanotechnology Program

Source: Nanot

Nanotechnology Program 2009 (FY)

T4E

Market size: 19,100 billion yen Employment: 516,000 Aim of Policy

Finding and nourishment of technological seeds

The

technology to

technologies

establishing b

functions and

Nanomaterial process technology

Mismatc

Supp

ort f

oal

ut

iliz

r pra

ctic

atio

n Nanoprocessing and measuring technology

Advanced nanocarbon application project

Advanced diamond device project

Res

earc

h &

Dev

elop

men

t

logy

to b

e es

tab

and

pr

ded

by0

201

lishe

dov

i

•Creation of new industries •Maintenance and enhancement of

al ness internation

competitive

Development of materials for practical utilization of nanotechnology

Hs

Fg Advanced information communication equipment and

device foundation program

Cooperations

• Lea • Fund

d the world market

amental

broader technologies established inindustrial fields

Kno

ledg

infra

stru

ctur

eas

a b

usin

ess

we

Fo

rmat

ion

Highly functional nanotech glass project for photonic devicesHigh-strength nanotech glass project for displays Carbon nanotube FED project

Full color rewritable paper usingfunctional capsules project

H

Inform

ighly functional carbon material technology

ation communication foundation advancement program

arget Market size: ,750 billion yen mployment: 128,000

echnology Progra

nanotechnology

create hyperfin

to maintain or

asic and fundame

their processing a

h of seeds and needs Exploratio

Cooperation between universities and industries

Ha

Hy

D

m by the

program

e struc

enhance

ntal tech

nd mea

Nanobiotechnol

n of physical pr

uman resourcend mobilization

perfine technolo

igh-efficiency ultraviolet emiconductor emitter projects

undamental technology program such as next eneration semiconductor device process, etc.

ndat

ion

of n

anot

echn

o

ogy project

Matching of seeds and needs operties and structural analysis of nanostructure

Acquisition of international standard

gy-related industry finding and strategic research consignment project

Development and provision of standard material and measurement standard

Fou

s development

Establishment of a network among universities and relevant associations

Ministry of E

includes d

ture of subs

functions of

nologies in re

surement tech

45

isplay program

conomy, Trade and Industry

evelopment of processing and measurement

tances, forming, processing and assessment

such substances for industrial application,

lation to creation of hyperfine structure control

nologies. In addition, the data obtained from

such activities are systematically organized from the viewpoint of structure, function and process, to

can be applied to broader industrial areas by FY2007. METI

stimates the size of the market as 19,100 billion yen and employment of 516,000 people in 2010.

he follow

create knowledge foundations that

e

T ing table shows the development items included in the program package.

Fig. 22: Nanotechnology Program Package

Nanomaterials and processing technology FY2001 - FY2007

This aims at creating materials having new functions by controlling hyperfine structures. In FY2003, creation of new products applying carbon nanotube, etc., started. [Details] Nanostructured polymeric materials, nanotechnology glass, nanotechnology metal, synthesis

rticles, nanostructure coating, nanofunction n of nanotechn y materials program results

and advanced nanocarbon applic

and upgrading functionality of nanotechnology pamaterials, nanotechnology material metrolostemizatio olog

ation projects

Development of Nanoprocessing and Measuring Technology FY - FY2006 2002

Th fabrication process techn ogy using quan s indispedeveloping ne l d low environmental load materia nd full color rewritable paper usi , a new type of imaging media. I dinano level measuring techno or nanoprocessing. [Details] Nanofabricat um beams, nanostructure forming fo aintegration, 3D nanoscale c ce materials, and full color rewritable pf ts

ese inclu e nanod olxt generation electronic materia

tum beams that i nsable for s an

ng functional capsulesls, an ad

r ceraper u

tion, logy is developed f

ion process using quant mics sing ertified referen

unctional capsules projec

Development of Materia lols for Practical Utiliza n of Nanotechnotio gy FY2003 - FY 06 20

This aims at early laun ical seeds in th e-utilization e. [Details] Advanced diamond device functional nanotechnology glass for photonic d echn ays 【See the rela agCN ag ncy ultraviolet semiconductor emitter pand ultrah purity Cr-Fe chnology

ching in the market of technolog e pr stagprojectd p

project, highly teevices, high-strength nanot ology glass project for displ

es】, high-efficiees】, roject T-FED project 【See the related p

igh alloy utilization te

Nano ojebiotechnology Pr ct【See the related pages】 FY2003 - FY 06 20

To promote projects for dom d biotechnology. ains overlapping nanotechnology an

Advanced Information Communication Sy damental stem and FunDevice Pr ram 【See the related pages】 og

FY2001 - FY 07 20

Toward th en vanc munication network, developed such

e establishm t of the highly ad ed information comfundamental technologies for such communication equipment and devices will be as semiconductor fine processing technology.

【Related Measures】Grant System/Utilization Support Project -

The grant system2 aims at exploring technological seeds. Researches by private companies that are in the stage of practical use are financially supported.

Source: “Nanotechnology Program” by the Ministry of Economy, Trade and Industry

2 Grant system refers to financial assistance provided by such entity as New Energy and Industrial Technology Development Organization for research and development of the designated field.

46

C. Nanotechnology Comprehensive Support Project

Sponsored by Ministry of Education, Culture, Sports, Science and Technology (MEXT),

6 universities and independent administrative agencies throughout Japan open their

facilities and advanced technologies to researchers of

oth research and development tion

is 5

and ties and agencies.

Hig

Syn s) and the Comprehensive Molecular and Material

Sy

cen

nan

(1)

basically utilizes technologies, know-how and existing facilities of

eac a and

sys ere

im

use

oth . The whole system is so constructed that

the specialties of appl

e using

com i ol,

wh Science and Technology opens a nano-foundry

sch

and

dis tive bodies are designed to tighten the relationship

wit

(2)

ection and

dissemination of information regarding nanotechnology, establishes a researchers’ network, educates

1

nanotechnology-related large-sized special

er universities and companies to provide them support. The dura

years from FY2002 to FY2006. For this purpose, MEXT is installing the state-of-art facilities

assigning competent technical specialists to the support-providing universi

The support providing entities are divided into the following four groups; the Ultra

h-Voltage TEM Analysis Group (4 entities), the Nano-foundry Group (5 entities), the

chrotron Radiation Analysis Group (4 entitie

nthesis and Analysis Group (3 entities).

In addition to this is the establishment of nanotechnology comprehensive support project

ter, where information related to nanotechnology is collected and disseminated, as well as

otechnology researchers are nourished.

R&D Support System

The support project

h support-providing entity. From FY2002 to FY2003, additional dvanced facilities

tems were installed at such support-providing entities and equipment and machines w

proved in order to facilitate efficient performance of the support project and upgrading the generic

of them. Specialist engineers are also assigned to such entities to provide R&D supports to

er entities from planning to measurement and analysis

advanced research results can be obtained regardless of icants.

In order to nourish nanotechnology specialists, schools are opened as time to tim

mon use facilities. For example, Osaka University provides an ultra h

ile National Institute of Advanced Industrial

gh voltage TEM scho

ool. User explanation meetings are also held as time to time. In addition to this are seminars

workshops where information related to the support system and research results are

seminated. Joint events with local administra

h local industries and to establish a network of researchers.

Nanotechnology Comprehensive Support Project Center

The nanotechnology comprehensive support project center provides coll

human resources and conducts public relation activities.

47

The center also collects the information regarding the trend of nanotechnology researches

e-mail magazines and bulletins. It

pens “nanotechnology comprehensive symposiums” and other meetings where researchers from

ultiple d

ltra Hig

in and out of Japan, and puts out through their own website,

o

m omains gather and exchange information , aiming at establishing a researchers’ network.

Its human resources education includes ‘nano-bio school’, an interdisciplinal school , and other

activities. Its public relation activities include making videos and exhibition of related pamphlets,

opening a “nanotechnology comprehensive support project” booth at trade fairs.

Fig. 23: Project Participants (R&D Supporting Entities) and Activities

U h-Voltage TEM Analysis Group (4 entities) Four entities having a ultra high voltage TEM (more than 1000 kV of accelerating voltage) provides outside nanotechnology researchers a chance to use the microscope and gives know-how on preparation and analysis of specimens through joint researches and user seminars.

NationalMateria

Institute for Materials Science (High Voltage Electron Microscopy Station and Advanced ls Laboratory)

- In situ analysis support using a high resolution analytical electron microscope

Institute for Materials Research, Tohoku Universi

ty - Nanomaterials fine structure analysis support

Research Center for Ultra-High Voltage Electron Microscopy, Osaka University - Support for nanostructure analysis of materials and living organisms

The Research Laboratory for High Voltage Electron Microscopy, Kyushu University - High voltage electron microscopy support for developing nanomaterials

Nano-foundry Group (5 entities) 5 entities provide nanoprocessing and nano-foundry supports in a unique and diversified way including opening their nanoprocessing facilities to researchers in and out of them.

National Institute of Advanced Industrial Science and Technology - Nanoprocessing Partnership Program

Nanotec

hnology Research Center, Waseda University - Custom nano-foundry support

Quantum Nanoelectronics Research Center of Tokyo Institute of Technology - Support for 3D nanostructuring using electron beam exposure

Nanotechnology Process Foundry, The Institute of Scientific and Industrial Research, Osaka University - Nanotechnology process foundry

Research Center for Nanodevices and Systems, Hiroshima University - Support for silicon nanostructure foundry

Sy on Radiation Analysis Group (4 entities) SPring-8 provides assistance mainly in basic researches such as identification of physical properties of nanotechnological substances. Ritsumeikan University features providing assistance of researches for application of nanoprocessing, etc. to industri

nchrotr

es using low energy light.

48

Japan Synchrotron Radiation Research Institute (SPring-83) - Analysis support using synchrotron radiation utilizing common-use beamline

National Institute for Materials Science (SPring-8) - Analysis support using synchrotron radiation utilizing wide energy range beamline

Japan Atomic Energy Agency (SPring-8) - Analysis support using synchrotron radiation utilizing the beamline of JAEA

Ritsumeikan University SR Center - Support for analysis of nanoscale structure and materials using synchrotron radiation

Comprehensive Molecular and Material Synthesis and Analysis Group (3They provide a packed services from synthesis and analysis of organic m

entities) aterials as a comprehensive

t of a certain other technologies. support of nanotechnology science and technology no

Institute for Molecular Science, National Institute of Natural Sciences - Support for molecule substances nanoscience

Institute for Chemical Research, Venture Business Laboratory and Graduate School of Engineering, Kyoto University - Support for networking of substance nano precision analysis

Faculty of Engineering, Kyushu University - Synthesis and analysis support of nanosubstances

(N contents of the support

(t

S t by MEXT

ote) Upper stand for institution/facility; Lower stand for

echnology/sector)

ource: Intermediate report on nanotechnology comprehensive support projec

3 Super Photon Ring-8, an experiment facility using irradiation light, which was established by then Japan Atomic Energy Research Institute (JAERI) and Riken.

49

IV. Business Model and Practice

A

F of Nanoscale Equipment for Visualization and

M

market of nanoscale equipment for

v ere are no significant differences of product supply in

b ed into direct sales route and sales agent route.

or those which have already been in business in this market segment for a long time, and those

of the case, a network of their own sales agents have already been in place.

are in the

apanese market for a long time of period. Some sell products through their sales agents only,

while others sell directly to end users and through their sales agents depending upon products and

end users. It can be safely said that sales agent routes are often used for end users as universities

and researchers and in the case of selling generic-use products.

. Distribution Channel

ig. 24: Distribution Channel of Market

easurement (typical case)

The above diagram is a typical distribution channel of

isualization and measurement. Basically, th

oth routes. The supply chain can be roughly divid

F

Japanese companies

Overseas manufacturers

Foreign

–affiliated companies

users

End

Sales agents

Sales agents

which sell physical and chemical equipment in addition to nanoscale equipment for visualization and

measurement, most

These generally include major Japanese companies and foreign-affiliated companies which

J

50

B. Typical Business Model in Japan

hows a business model of Japanese companies and foreign-affiliated

ompanies in Japan in the market of nanoscale equipment for visualization and measurement.

odel

Japanese companies manufacture and sell products at their factories and by purchasing or

importing them from other companies. They sometimes develop products jointly with other

companies or obtaining product development licenses. The joint development often includes

special orders from customers and end users based on their specifications. On the other hand,

foreign-affiliated companies in Japan often and basically import products from their head office or

from their production sites outside of Japan. Apart from products and parts warehouses and

product handling centers, they do not have their own production factories in Japan. This is a

Japanese companies

The following figure s

c

Fig. 25: Typical Business M

Foreign-affiliated companies

Distribution agents

Marketing/Sales

Import

Product Line

Sales

Joint Development,

License-in

In-house production

Marketing/Sales

Demonstration sites

After-sale service

Purchase in Japan

Customers and end users

Sales promotions

Seminars etc

Demonstration sites

After-sale service

Web siteAcademic meeting Trade fairs

51

noteworthy difference in supply chain between Japanese companies and foreign-affiliated

ompanies.

inars.

aving own website is indispensable for them to provide product information for their customers.

equipment for visualization and measurement on the web yet,

xcept for sales of consumabl

Each manufacturer recognizes that demonstration of equipment and devices are important

ales activiti functions and performan f them to customers. Based on such

cognitions, each company locates demonstration sites in their head office and sales offices. Some

anufacturers believe that the performance of demonstration affects the purchasing decision of

ustomers, in addition to produ t functionalities and prices, which is typically observed in

reign-affiliated companies.

In the business model o ajor companies, sales agents are generally expected to perform

) acceptance of inquiries for them, (ii) clerical works such as preparing documents and (iii) credit

ontrol and collection of trade account receivable, while salespersons and engineers of the

anufacturers are often in product explanat g applications, demonstrations,

ample analysis and o ise jobs. Especially, in the case of T ther devices used

r advanced industrial fields, higher degree of knowledge and experience or appropriate education

required to understan nd respond to the hig alized demands of end use In such cases,

alespersons and engineers of manufacturers are onsible for accepting inqu es, which is not

re. Apart from highly generic products such as in-atmosphere type SPMs, de ery, installation

nd handling instructions are often carried out by manufacturers.

Just the sam other hardware in general, nanoscale equipment for visualization and

easurement requires ter-sale servic uding m e of the h i important part

f the business. Quality and reliability of maintenance services are imp for end users

select products to purchase. Since the reliability and quality of maintenance service are, at times,

irectly related to the brand image of a manufacturer, many of small-sized manufacturers normally

ave their own after-sale service system. addition to its after-sale services, they

ometimes ride on such services provided by their vendors of parts and components.

c

Both Japanese companies and foreign-affiliated companies may have chances of sales

promotion by exhibiting their products in related academic meetings, trade fairs and sem

H

No companies sell their nanoscale

e e parts.

s es to show ce o

re

m

c c

f m

fo

(i

c

m charge of ion, showin

s ther expert EMs and o

fo

is d a hly speci

in resp

rs.

iri

liv

s

ra

a

e as

m af es incl aintenanc m; whic s an

o ortant factors

to

d

h Or otherwise, in

s

52

C. Business Practice in Japan

1. gency System

The sales agency system in Japan is often pointed out as a rare system in the business

practice of Europe and the U.S. The role and functions of sales agents can be roughly summarized

as follows.

Sales A

tories and researchers, it can be said that the Japanese market has a

ast layer

(3) Credit Control and Collection of Trade Account Receivable

In the case of transaction with sales agent, the direct customer of a manufacturer is its sales

agents who, then, sell products to end users. From the viewpoint of a manufacturer, it is very

convenient to the point that sales agents are the only subject of credit control, and that collection of

trade account receivable is rather easy when this is stipulated in sales agency agreements.

(1) Supplemental Organization of Manufacturers

Within its narrow land compared to the U.S. and Europe, Japan has 252 national and

public test laboratories, public research institutions, science and technological universities, institutes

and graduate schools and over 90,000 researchers working there. When taking into consideration of

private research institutes, fac

v of end users. In order to cover the gigantic market by a single manufacturer, it has to

have a quite a lot of employees and bear a tremendous cost. For this reason, many manufacturers

have a contract with sales agents having offices at each region of Japan to supplement shortages of

sales power and to conduct business efficiently. More precisely, manufacturers expect their sales

agents to obtain product inquiry information for them. However, some manufacturers tries to

increase direct sales without by way of sales agents due to the following reasons: (i) sales agents do

not always cooperative to sell preferentially the products of the manufacturer, as they handle

numerous products of more than one manufacturer and (ii) many products of nanoscale equipment

for visualization and measurement are very specialized in terms of specifications and requirements

of end users.

(2) Clerical Works

As a unit cost of products in this segment tend to be high, most of the case, preparing

documents such as purchase agreement will be necessary to deliver products to public institutions, in

particular. Therefore, a type of role sharing takes place between a manufacturer and its sales agents,

for the former concentrated to acquire businesses, while the latter is given such documentation

works.

53

2. Terms and Conditions of Transaction

cts in this segment are taken place in a form of sellout and leasing is

rely observed. The settlement basically is made in cash or promissory notes. Public entities and

niversiti for

ies the periods are normally be 90 days. A few companies make payment 150 days after

e date of invoice. The currency used is Japanese yen, normally, provided that the transaction

rtail cost by integrating the volume of products purchased.

Most of the produ

ra

u es normally pay in cash. The settlement terms differs depending on customers,

universities and public entities, payment is made approx. 30 days from the date of invoice, while

private entit

th

takes place within Japan only.

As to the difference of transaction type between Japan and other countries, some

companies point out acceptance inspection system. In the U.S. an invoice can be issued upon

delivery of products, while in Japan, an invoice can only be issued when the product has passed the

acceptance inspection after delivery. As with the exchange risks, the risk of transaction is normally

borne by seller.

In some cases the past record of transaction with the end user works for determining

whether the sales agreement is made.

3. Global Procurement System (Integration of Purchasing Functions)

Many major manufacturers having overseas offices are moving toward a global

procurement system or an integration of purchasing functions. This practice is particularly

observed in multinational manufacturers of automobile, steel and machinery. The purpose of such

practice is to cu

54

V. Market-Entry of Foreign-affiliated Companies

. Trend

g. 26: M

A of Foreign Companies Entered in Japan

The following table shows the history of foreign-affiliated companies advanced in the

Japanese market of nanoscale equipment for visualization and measurement. (Some have no more

offices in Japan now, while others have offices in Japan, but might have withdrawn from this

industrial segment.)

Fi ajor Foreign-affiliated Companies Entered in Japan

Year Foreign-affiliated Company Country

1961 Established Carl Zeiss Japan Germany

1977 Established Beckman Japan (current Beckman Coulter) U.S.

1979 Estab

obson (current Taylor Hobson) U.S.

lished Bio-Rad Japan

Established Rank Taylor H

U.K.

1982 Established Renishaw KK U.K.

1984 Established Veeco Instruments U.S.

1987 Beckman Japan changed its corporate name to Beckman -

1989 Established Thermo Electron Corporation U.S.

1990 Established Leica Microsystems Japan Germany

1992 Established Accelrys Software Inc. U.S.

1996 Established Phillips Electron Optics (current FEI Company Japan

Ltd.)

Rank Taylor Hobson changed its corporate name to Taylor Hobson

The

Netherlands

-

1997 Horiba Ltd. acquired Instruments, Inc. (former Jobin Yvon) France

1998 Established Beckman Coulter (after merger with Coulter) -

1999 Established Varian Technologies Japan Ltd. U.S.

2000 Established Mahr Multisensor Japan (current Mahr Japan) Germany

2001 Phillips Electron Optics changed its corporate name to FEI Company

Japan Ltd. after merger with FEI Japan, a service providing company

U.S.

2002 Mahr Multisensor Japan changed its corporate name to Mahr Japan -

2003 Thermo Nicolet Corp. changed its corporate name to Thermo Electron

Corporation.

-

55

2004 Jobin Yvon changed its corporate name to Horiba Jobin Yvon

Carl Zeiss acquired Cell Science Division of Bio-Rad Japan

-

-

* Acquisition by Horiba Ltd. of Instruments, Inc. (former Jobin Yvon) in France is shown as a

ference only.

urce: H

In this segment, there are roughly three types of entering into the Japanese market by

Fi orpor Companies in Japan

re

So earings to major companies and reference documents released by each company

B. Major Type of Entering into the Japanese Market

foreign companies.

g. 27: C ate Form of Foreign-affiliated

Types Description

Trade es agent contract with a Japanese company to h

e a business in Ja n

office may be established.［Ex. Renishaw］

This type is to have a sal launc

products in Japan. After confirming that it can mak pan, a

Estab

Offices

lishing ffice from the onset of entering into the Ja se

pically observed to foreign-affiliated com

entities are sales of es,

t companies shown in the p s

is.

This type is to establish an o

market. This is a ty

pane

panies

currently operating in Japan. The status of these fic

branches, corporations and so on. Mos reviou

section, V. A., are categorized in th

Acquisition acquisition of a Japanese company a

me

ompanies are often observed. ［Ex.: Former Nicolet

he opposite ca

This type typically is an by

foreign-affiliated company. In this market segment, selling and

parent c

rger of

Japan and

Thermo Electron Corporation］.

* The case of purchase by Horiba Ltd. of Jobin Yvon is t se.

C. Key for Success and Challenges of Foreign-affiliated Companies in Japan

1. r Suc

(1) Functions o

It is c ompanies are in

ge igh-en ductio In

the case of pro arch purposes, in particular, researchers tend to choose products with

higher functions and such trend is more typically observed when the research is of an advanced

Key fo cess

f Products

onsidered that in this segment, products sold by foreign-affiliated c

neral h d type products with superior measuring functions, resolution and repro

ducts for rese

n.

56

na Some tain product ca gory

(CLSMs and m ly functional pro ct to

Some believe that a success of a foreign-affiliated company lies on, for example, the

r functions of the products. No

roducts with superior functions will sell well when the seller cannot propose how they can be

plied a

variety of concepts based on such needs. They can use a time lag of the

arket needs. Foreign-affiliated companies are effectively using such advantages proactively.

(3) Database

me fore

driven by broader ra

In the case of produ not long been utilized), it is not

rare t thei

data lyzing

as many sample ana

Europe, some companies s

past that an equipment uiring a database company.

(4) ope

For this in

condition. Using in

new application to cu funds. Few Japanese researchers in relation

to this industrial se some

reign-affiliated companies because they can disseminate measurement data of other countries

l Specifications

ture. foreign-affiliated companies occupy the top share in a cer te

icro Raman measurement systems) by providing such a high du

customers.

(2) Application

abundance and variety of applications in addition to superio

p

ap nd how they are used. A global company is capable of grasping wider range of product

needs and of creating

m

So ign-affiliated companies explain that their success in the Japanese market is

nge of specimen database they have, in addition to wide range of applications.

cts designed by novel technology (or that has

hat whether

library for ana

r products can enjoy trust of users or not directly depends on the abundance of

measurement data. It is an advantage of a global company to experience

lysis examples of users as possible to construct a database. In the U.S. and

ell measurement and analysis database. This actually occurred in the

manufacturer gained database by acq

Speed and Sc of Information Dissemination

dustrial segment, provision of information via internet is an indispensable

ternet enables them to show product information, related papers and thesis, and

stomers without investing a lot of

gment have difficulty reading English, and it is an advantage for

fo

promptly.

2. Challenges

(1) Requirement for Specia

Apart from products for generic applications, products for research purposes sometimes

require special specification customized to each end user. Some foreign-affiliated companies find it

difficult to respond to such needs when they do not have any production sites in Japan. When such

special specifications were to be required at always, they would be able to ask their head office to

57

apply such specifications. However, as such requirements should be treated case by case, it is

difficult for them to respond to it.

(2) Market-In

gn-affiliated companies point out that Japanese end users care for meticulous

tails, es

ent and Abolishment of Products

Many forei

de pecially the handling easiness of units. For example, it is believed that the number of

right-handed people in Japanese people is more than those in the U.S. and Europe. Most of the

case, products manufactured by foreign-affiliated companies are sold to Japanese users without any

modification. Some users say that as Japan is one of the largest markets of this segment in the

world, the products sold in Japan should be designed and developed for use especially for Japanese

people.

(3) Amendm

Most foreign-affiliated companies change a model of a product or abolish manufacturing

of a product as announced in advance without fail. While this is beneficial for such companies to

clear inventories and promote new products on one hand, for end users, it may be a disadvantage for

them, if such end users want to continue using conventional models.

58

VI. Advices for Entering into the Japanese Market

A. Establishment of Offices

ide to purchase the product. Manufacturers share the idea that no customers will purchase

product without confirming whether it can meet the needs of observation and measurement of them

em during the sales promotion are feasible in the

roduct o

(2) Customer Support System

Secondly, a firm customer support system including maintenance services must be set up.

Such after-sales services are among the top conditions for selecting products by end users. Each

foreign-affiliated companies in Japan considers it imperative to provide highly professional service

networks that can respond to an emergent requirement of users. Provision of such services by

consigning it to a Japanese company is one of the options. This, however, involves concerns as to

how to maintain the quality of services.

(3) Global Procurement

As already mentioned, many major companies tend to concentrate global procurement

functions to their head office in Japan. Though it depends on procurement conditions, having

offices in Japan is often an advantage for new entrants for collecting market information and

opening account with Japanese companies.

This chapter mainly explains how to enter the Japanese market. However, in order to

successfully operate sales of products in Japan, it is necessary to show physical presence of the

entrant in Japan. This consists of (i) effective demonstration and (ii) customer support system.

(1) Demonstration of Products

Though it depends on users, product demonstrations are one of the important factors that

they dec

a

or not, or whether the point of sales shown to th

p r not. In order to conduct demonstrations, hiring local employees familiar with products

and selection of appropriate demonstration sites are indispensable. This is the first reason why new

entrants should have a site in Japan to make a success.

59

B. Future-Promising Market

Here, the business prospect is glanced by product category.

g. 28: M

EM: Tra

achine FIB: Focused ion beam system

Surface: Surface smoothness measurement system Software: Data analysis software

The figure shown above represents the size of the Japanese market in the world arena and

the speed of growth of the Japanese market of nanoscale equipment for visualization and

measurement. The x-axis represents the possibility of growth of the market (FY2003 – FY2005),

while the y-axis the share of the Japanese market in the world arena. An auxiliary line is drawn at

the 0% line on the x-axis to distinguish positive and negative, at 30% line on y-axis as the reference

Fi arket Share and Growth of the Market of Nanoscale Equipment for Visualization and

Measurement

[I] [II]

Legend:

T nsmission electron microscope SEM: Scanning electron microscope

SPM: Scanning probe microscope CLSM: Confocal laser scanning microscope

NSOM: Near-field scanning optical microscope Raman: Micro Raman measurement system

Particles: Particle system characterization m

[IV] [III]

TEM

SEM

CLSM

SurfaceSPM

NSOM

FIB

30.0

40.0

50.0

60.0

Share (%)

SoftwareParticles

Growth Rate (%)

arket

Raman

0.0

10.0

-20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0

20.0

M

positivenegative [I][II]

[IV][III]

60

of the level of dominance in the market4.

The 1st quadrant, [I], is the area that the segment’s future growth and market share in the

orld are promising, with severe

ompetition waiting and may be attractive for a company with competitive advantages in product

occupies comparatively lowest part in the world market. If one of the reasons for

the low occupancy of Japanese market is just because the products are not in fashion in Japan, then,

it may worth for such company to enter the market. The 2nd, [II], and 3rd [III] quadrants (left side

of the 0% auxiliary line) are the segments that the future growth is currently questioned.

C. Others

(1) Establishment of Supply Chain Network and Reinforcement of Finance

When a foreign company to conduct business in Japan from the onset of its entrance using

its own direct sales system, it is natural that it examine utilization of agencies. As the market of

nanoscale equipment for visualization and measurement deals with products requiring high

expertness, how to provide training to the agents should be of a great significance during or after the

establishment of supply chain network. As a significant expenditure will be necessary for

establishment of own customer support system to enhance trust of customers, or for conducting sales

using its own direct sales system, it will be a condition of entering into the Japanese market to have

enough finance system to support them.

(2) Presentation of Innovative Applications and Enrichment of Database

In the market of nanoscale equipment for visualization and measurement in Japan,

apanese manufacturers tend to gain high assessment. Therefore, user requirements for products

ewly introduced in the market is necessarily high regardless of domestic or foreign manufacturers.

her performance and functions are required to products, it also becomes important to

ey can be used for.

filiated

pted

nese market,

w na is both positive. Items in this area can be said as future

c

functions and cost. While the 4th quadrant, [IV], suggests that the market growth is high, however,

Japanese market

J

n

While hig

present such applications as what can be done by using them and what purpose th

Recently, it is believed that end users will value on such aspects. When a foreign-af

company can provide high value-added products and present unique applications, it can be acce

in the Japanese market. Especially, for products that have newly entered into the Japa

4 For deciding the standard, the market occupancy ratio, etc., in the dominant firm regulation is used

r reference. The dominant firm regulation designates a business entity as a dominant firm if the tity occ

to prote

foen upies the market share of more than the designated level to regulate the business activity of it ct other weaker business entities. The market occupancy ratio for designating a company a dominant firm is 50% or above for anti-monopoly law in Japan, and 25% or above for Telecommunication Business Law. In this chapter, the ratio is designated as 30% taking into account of the current market conditions, as the level that a company will start to occupy a dominant share in the market.

61

such as micro Raman measurement systems, it will be of a great advantage to have rich database

used for analysis of measurement and observation data.

eria.

(3) In-house Standards

As discussed in ‘II. Laws and Regulations, JIS and ISO are two major standards governing

nanoscale equipment for visualization and measurement in Japan. Most of the corporate users

usually have their own in-house standards and criteria. The standards and criteria tend to be stricter

than JIS, ISO or those set by foreign corporate users, as assessed by foreign-affiliated companies and

manufacturers entered in Japan. Before entering into the Japanese market, it is desirable that the

products to be sold in Japan have been applicable to such stricter end-user standards and crit

62

VII．References

A. List of Related Organization/Companies

【Ministry, Public Research Organization】

Ministry / Organization

Name Location（Contact）／TEL／URL（Japanese, English）

Ministry of Economy, Trade

and Industry

(METI)

1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901

TEL：+81-3-3501-1511

http://www.meti.go.jp/

http://www.meti.go.jp/english/index.html

Ministry of Education,

Culture, Sports, Science and

Technology

(MEXT)

2-5-1 Marunouchi, Chiyoda-ku, Tokyo 100-8959

TEL：+81-3-5253-4111

http://www.mext.go.jp/

http://www.mext.go.jp/english/index.htm

National Institute for

Materials Science

1-2-1 Sengen, Tsukuba 305-0047

TEL：+81-29-859-2026

http://www.nims.go.jp/jpn/

http://www.nims.go.jp/eng/index.html

Nanotechnology

Researchers Network

Center of Japan

2nd Fl., Toranomon 30 Mori Bldg., 3-2-2 Toranomon, Minato-ku,

Tokyo 105-0001

TEL：+81-3-5404-3280

http://www.nanonet.go.jp/japanese/

http://www.nanonet.go.jp/english/index.html

National Institute of

Advanced Industrial

Science and Technology

(AIST)

Tsukuba Headquarters

AIST Tsukuba Central 2,Tsukuba 305-8568

TEL：+81-29- 861-2000

http://www.aist.go.jp/index_ja.html

http://www.aist.go.jp/index_en.html

New Energy and Industrial

Technology Development

Organization (NEDO)

MUZA Kawasaki Central Tower, 1310 Omiyacho, Saiwai-ku,

Kawasaki 212-8554

TEL：+81-44-520-5100

http://www.nedo.go.jp/

http://www.nedo.go.jp/english/index.html

63

Ministry / Organization

Name Location（Contact）／TEL／URL（Japanese, English）

Japan Science and Kawaguchi Center B

Technology Agency (JST)

ldg. , 4-1-8 Honcho, Kawaguchi, Saitama

332-0012

48-226-5601

http://www .

http://www.jst.go.jp/EN/index.html

TEL：+81-

.jst.go jp/

National Institute of

Information and

ications

Technology,

.jp/ Commun

Kansai Advanced Research

Center

588-2 Iwaoka, Nishi-ku, Kobe 651-2492

TEL：+81-78-969-2100

http://www-karc.nict.go

http://www-karc.nict.go.jp/en/index.html

【Industrial Organization】

Organization Name Location（Contact）／TEL／URL（Japanese, English）

Japan Analytical

Instruments Manufacturers

3 Kandanishikicho, Chiyoda-ku, Tokyo

1

T

h r.jp/index.php

h lish/index-e.php

Association

rd Fl., Sakura Bldg., 1-10-1

01-0054

EL：+81-3-3292-0642

ttp://www.jaima.o

ttp://www.jaima.or.jp/eng

Japan Association for

International Chemical

N kyo-ku, Tokyo 113-0021

T

h

h h/index_e.htm

Information

(JAICI)

akai Bldg., 6-25-4 Hon-Komagome, Bun

EL：+81-3-5978-3608

ttp://www.jaici.or.jp/

ttp://www.jaici.or.jp/englis

Japan Optical Measuring

Instruments Manufacturers

K iba-Koen, Minato-ku, Tokyo

1

TEL：+81-3-3435-8083

h

Association(JOMA)

ikai Shinko Kaikan 204, 3-5-8 Sh

05-0011

ttp://www2.ocn.ne.jp/~joma/

Japan Precision Measuring

Instruments Manufactur

ers

Association（JMA）

3 2 Nishi-Shimbashi, Minato-ku, Tokyo

1

T

h

rd Fl., Masaki Bldg., 3-14-

05-0003

EL：+81-3-3434-9557

ttp://www5.ocn.ne.jp/~jma/

64

Organization Name Location（Contact）／TEL／URL（Japanese, English）

Japan Electronics and

hnology

Association(JEITA)

3rd Fl., Mitsui Sumitomo Kaijo Bldg. Annex, 3-11 Kanda- Surugadai,

C

T 3518-6425

h ese/

h nglish/

Information Tec

Industries

hiyoda-ku, Tokyo 101-0062

EL：+81-3-

ttp://www.jeita.or.jp/japan

ttp://www.jeita.or.jp/e

Japan PersonalComputer

)

4 agatacho, Chiyoda-ku, Tokyo

1

T

h

h

Software

Association(JPSA

th Fl., Shuwa-tameike Bldg.,2-4-2 N

00-0014

EL：+81-3-5157-0780

ttp://www.jpsa.or.jp/

ttp://www.jpsa.or.jp/english/index_e.html

Semiconductor Equipment

Association of Japan

(SEJA)

6th Fl., Rokubancho SK Bldg.,3 Rokubancho, Chiyoda-ku, Tokyo

102-0085

TEL：+81-3-3261-8260

http://www.seaj.or.jp/

http://www.seaj.or.jp/english/index.htm

【A cademic Society】

Society Name Location（Contact）／TEL／URL（Japanese, English）

The Japan Society of

Applied Physics

1-12-3 Kudan-Kita, Chiyoda-ku, Tokyo

ish/index.html

5th Fl., Kudan-Kita Bldg.,

102-0073

TEL：+81-3 -3238-1041

http://www.jsap.or.jp/

http://www.jsap.or.jp/engl

The Optical Society of .

jsap.or.jp/OSJ/index-e.shtml

Japan

(An Affiliate of the Japan

Society of Applied

Physics)

5th Fl., Kudan-Kita Bldg

TEL：+81-3-3238-1043

http://annex.jsap.or.jp/OSJ/

http://annex.

Society of Nano Science er, 5-5-15 Nishinakajima,

-4806-5656

ano/

/index-e.html

and Technology

8th Fl., Shin-Osaka Central Tow

Yodogawa-ku, Osaka 532-0011

TEL：+81-6

http://wwwsoc.nii.ac.jp/sn

http://wwwsoc.nii.ac.jp/snano

65

Society Name Location（Contact）／TEL／URL（Japanese, English）

The Society of Polymer

Science, Japan

Shintomicho-Tokyu Bldg., 3-10-9 Irifune, Chuo-ku, Tokyo 104-0042

TEL：+81-3-5540-3770

http://www.spsj.or.jp/

http://www.spsj.or.jp/english-index.htm

The Japan Society for an-Kita, Chiyoda-ku, Tokyo 102-0073

.jspe.or.jp/

ish/index.html

Precision Engineering

Kudan Seiwa Bldg.,1-5-9 Kud

TEL：+81-3-5226-5191

http://www

http://www.jspe.or.jp/engl

The Chemical Society of

Japan

hiyoda-ku, Tokyo 101-8307

emistry.or.jp/index-e.html

1-5 Kanda-Surugadai, C

TEL：+81-3-3292-6161

http://www.chemistry.or.jp/

http://www.ch

The Japanese Society of

Microscopy

1-6 Otsuka, Bunkyo-ku, Tokyo 112-0012

40

l

http://wwwsoc.nii.ac.jp/jsm/index-e.html

Otsuka 3 chome Bldg.,3-1

TEL：+81-3-5940-76

http://wwwsoc.nii.ac.jp/jsm/j_frame.htm

The Electrochemical

Societ

ARUSU Ichigaya 202, 4-8-30 Kudan-Minami, Chiyoda-ku, Tokyo

102-00

.electrochem.jp/

/index-e.html

y of Japan 74

TEL：+81-3-3234-4213

http://www

http://www.electrochem.jp

The Japan Institute of

Metals (JIM)

Bldg., 1-14-32 Ichibancho, Aoba-ku, Sendai

/

ndex-e.shtml

2nd Fl., Fly HAITO

980-8544

TEL：+81-22-223-3685

http://wwwsoc.nii.ac.jp/jim

http://wwwsoc.nii.ac.jp/jim/i

The Biophysical Soci

Japan

ety of (Nagoya University graduate

school engineering graduate course application physics)

ex-e.html

Furo-cho, Chikusa-ku, Nagoya, 464-8603

TEL：+81-52-789-3720

http://www.biophys.jp/

http://www.biophys.jp/ind

The Molecular Biology

Society of Japan,

-14 Yushima, Bunkyo-ku, Tokyo

TEL：+81-3-5805-1901

http://wwwsoc.nii.ac.jp/mbsj/

http://wwwsoc.nii.ac.jp/mbsj/index-e.html

5th Fl., 1st Genesys Bldg., 2-31

113-0034（Med-issue Co., Ltd.）

66

【Japanese Company】

Company Name Head office／TEL／URL（Japanese, English）

AdvanceSoft Corporation h Bldg., 1-9-20 Akasaka, Minato-ku,

.jp/

7th Fl., 16th Kowa Sout

Tokyo107-0052

TEL：+81-3-5570-1680

http://www.advancesoft

ULVAC-PHI, Inc. agawa 253-8522

.jp/english/index.htm

370 Enzo, Chigasaki, Kan

TEL. +81-467-85-6522

http://www.ulvac-phi.co.jp/jp/

http://www.ulvac-phi.co

AET, Inc. wasaki 215-0033

p: m english/index.html

2-7-6 Kurigi, Asao-ku, Ka

TEL：+81-44-980-0505

http://www.aetjapan.com/gaiyo/company.html

htt //www.aetjapan.co /

SII NanoTechnology Inc. huo-ku, Tokyo 104-0041

w.siint.com/

dex.shtml

RBM Tsukiji Bldg., 2-15-5 Shintomi, C

TEL：+81-3-6280-0070

http://ww

http://www.siint.com/en/in

Elionix Inc. chioji, Tokyo 192-0063

.elionix.co.jp/englishtop.html

3-7-6 Motoyokoyama, Ha

TEL：+81-42-626-0611

http://www.elionix.co.jp/

http://www

Otsuka Electronics Co., Ltd. irakata, Osaka 573-1132 3-26-3 Shodai-Tajika, H

TEL：+81-72-855-8550

http://www.photal.co.jp/

http://www.photal.co.jp/english/index.html

Olympus Corporation Tokyo

Shinjuku Monolith, 2-3-1 Nishi-Shinjuku, Shinjuku-ku,

163-0914

TEL：+81-3-3340-2111

http://www.olympus.co.jp/jp/

http://www.olympus.co.jp/en/

67


KEYENCE Corporation 1-3-14 Higashi-Nakajima, Higashi-Yodogawa-ku, Osaka 533-8555

TEL：+

ce.com/

81-6-6379-1111

http://www.keyence.co.jp/index.jsp

http://www.keyen

CYBERNET SYSTEMS

Co., Ltd.

-6 Otsuka, Bunkyo-ku, Tokyo 112-0012

p/english/

Nissay Otowa Bldg., 2-15

TEL：+81-3-5978-5404

http://www.cybernet.co.jp/

http://www.cybernet.co.j

SYSMEX Corporation , Chuo-ku, Kobe 651-0073

1-5-1 Wakinohama-Kaigandori

TEL：+81-78-265-0500

http://www.sysmex.co.jp/index.html

http://www.sysmex.co.jp/en/

SHIMADZU Corporation to 604-8511

/

1 Nishinokyo-Kuwabaracho, Nakagyo-ku, Kyo

TEL：+81-75-823-1111

http://www.shimadzu.co.jp/

http://www.shimadzu.com

Sumisho Computer Systems

Corporation

quare Office Tower Z ,1-8-12 Harumi,

sh/index.html

Harumi Island Triton S

Chuo-ku, Tokyo 104-6241

TEL：+81-3-5166-2500

http://www.scs.co.jp/

http://www.scs.co.jp/engli

Tokyo Instruments, Inc. 134-0088

/

p/english/index.html

6-18-14 Nishi-Kasai, Edogawa-ku, Tokyo

TEL：+81-3-3686-4711

http://www.tokyoinst.co.jp

http://www.tokyoinst.co.j

Tokyo Electron Limited Minato-ku, Tokyo

-3-5561-7000

dex.htm

htm

TBS Broadcast Center, 5-3-6 Akasaka,

107-8481

TEL：+81

http://www.tel.com/jpn/in

http://www.tel.com/eng/index.

TOKYO SEIMITSU

Co., Ltd.

okyo 181-8515

TEL：+81-422 -48-1011

http://www.accretech.jp/

http://www.accretech.jp/?set_language=en&cl=en

9-7-1 Shimorenjaku, Mitaka, T

68


TOYO Corporation 1-1-6 Yaesu, Chuo-ku, Tokyo 103-8284

TEL：+81-3-3279-0771

http://www.toyo.co.jp/

http://www.toyo.co.jp/en/index.html

Tomoe Engineering Co., Ltd. Second Maruzen Bldg., 3-9-2 Nihombashi, Chuo-ku, Tokyo

103-0027

TEL：+81-3-3271-4055

http://www.tomo-e.co.jp/

http://www.tomo-e.co.jp/index_e.html

Nanophoton Corporation

R&D Center

ed Science and Innovation,

ita, Osaka 565-0871

/eng/index.html

A-509, Center for Advanc

Osaka University, 2-1 Yamadaoka, Su

TEL：+81-6-6878-9911

http://www.nanophoton.jp/

http://www.nanophoton.jp

Nikon Instech Co., Ltd. idacho, Kawasaki-ku, Kawasaki

ts.jp/jpn/index.aspx

ents.jp/eng/index.aspx

Parale Mitsui Bldg., 8 Higash

210-0005

TEL：+81-44-223-2160

http://www.nikon-instrumen

http://www.nikon-instrum

NIKKISO Co., Ltd. Tokyo 150-8677

nglish/index.html

3-43-2 Ebisu, Shibuya-ku,

TEL：+81-3-3443-3711

http://www.nikkiso.co.jp/

http://www.nikkiso.co.jp/e

Nihon Seimitsu Co., Ltd. ldg., 4-1-8 Honcho, Kawaguchi,

.nihon-s.co.jp/

8th Fl., Kawaguchi Center B

Saitama 332-0012

TEL：+81-45-225-5311

http://www

JEOL Ltd. a, Tokyo 196-8558 3-1-2 Musashino, Akishim

TEL：+81-42-543-1111

http://www.jeol.co.jp/

http://www.jeol.com/

69


JASCO Corporation 2967-5 Ishikawamachi, Hachioji, Tokyo 192-8537

/Japanese/home/index.html

TEL：+81-426-46-4111

https://www.jasco.co.jp

http://www.jasco.co.jp/

Japan Laser Corporation 2-14-1 Nishi-Waseda, Shinjuku-ku, Tokyo 169-0051

TEL：+81-3-5285-0861

p/

p/en_top.html

http://www.japanlaser.co.j

http://www.japanlaser.co.j

Hitachi High-Technologies okyo 105-8717

/oversea/index.html

Corporation

1-24-14 Nishi-Shimbashi, Minato-ku, T

TEL：+81-3-3504-7111

http://www.hitachi-hitec.com/

http://www.hitachi-hitec.com

FUJITSU Limited Higashi-Shimbashi, Minato-ku,

jitsu.com/

bal/

Shiodome City Center, 1-5-2

Tokyo 105-7123

TEL：+81-3-6252-2220

http://jp.fu

http://www.fujitsu.com/glo

HORIBA, Ltd.

（Domestic selling agency,

BIN

YVON）

o 601-8510

/index_e.htm

Product of HORIBA JO

2 Kisshoin-Miyanohigashicho, , Minami-ku, Kyot

TEL：+81-75-313-8121

http://www.jp.horiba.com/

http://www.jp.horiba.com

Mitutoyo Corporation , Kawasaki 213-8533

o.co.jp/eng/index.html

1-20-1 Sakado, Takatsu-ku

TEL：+81-44-813-8201

http://www.mitutoyo.co.jp/

http://www.mitutoy

UNISOKU Co., Ltd. , Osaka 573-0131

2-4-3 Kasugano, Hirakata

TEL：+81-72-858-6456

http://www.unisoku.co.jp/

http://www.unisoku.com/

Lasertec Corporation , Kohoku-ku, Yokohama 223-8551

1

http://www.lasertec.co.jp/

http://www.lasertec.co.jp/en/index.html

4-10-4 Tsunashima-Higashi

TEL：+81-45-544-411

70


Yokogawa Electric

Corporation

/

2-9-32 Nakacho, Musashino, Tokyo 180-8750

TEL：+81-422-52-5555

http://www.yokogawa.co.jp/

http://www.yokogawa.com

Marubeni Solutions

Corporation 02

Shibuya Minami TokyuBldg., 3-12-18 Shibuya,

Shibuya-ku, Tokyo 150-00

TEL：+81-3-5778-8888

http://www.msol.co.jp/

http://www.msol.co.jp/english/index.html

71

B. List of Related Trade Show （holding periodically）

International Na Conference. nanotech2006 notechnology Exhibition&Organizer： nano tech executive committee Period： February 21(Tue) to 23(Thu), 2006 Place： Tokyo Big Sight (Tokyo International Exhibition Center) Reference： nanotech Execut

ICS ConventionSumitomo Corp anda-Nishikicho, Chiyoda-ku, Tokyo 101-8449 TEL：+81-3-32

ive committee secretariat Design, Inc. . Jimbocho Bldg., 3-24 K

19-3531

SemiconJapan2006 Organizer： SEMI (Semiconductor Equipment and Materials International) Period： December 6(Wed)to 8(Fri), 2006 Place： Makuhari Messe (Nippon Convention Center) Reference： SEMI Japan Show section

7th Fl., Kenwa Bldg.,4-7-15 Kudan-Minami, Chiyoda-ku, Tokyo 102-0074 TEL：+81-3-3222-6022

JAIMA SHOW 2006 Organizer： Japan Analytical Instrument Manufacturers Association Period： August 30(Wed)to September 1(Fri) , 2006 Place： Makuhari Messe International Exhibition hall Reference： Japan Analytical Instrument Manufacturers Association JAIMA SHOW

committee secretariat 3rd Fl., Sakura Bldg,1-10-1 Kandanishikicho, Chiyoda-ku, Tokyo 101-0054 TEL：+81-3-3292-0642、

HIKARI NANOTECH FAIR 2006 Organizer： Japan Optical Measuring Instrument Manufacturers Association(JOMA), Japan

Precision Measuring Instruments Manufacturers Association（JMA）

Period： June 7(Wed)to 9(Fri), 2006 Place： PACIFICO YOKOHAMA Convention Center Reference： Japan Precision Measuring Instruments Manufacturers Association Exhibits

department 3rd Fl., Masaki Bldg 3-14-2, Nishi-Shimbashi, Minato-ku, Tokyo 105-0003 TEL：+81-3-3434-9557

72

Procedures for Investing in Japan

Ⅰ.

he ing a company in Japan, see JETRO’s website

(na Laws ness in Japan” under “Investing in Japan”)

htt etro.go can also be found.

Section 1. Incorpora

Planned areas of under the new Corporate Law

1.1 Types of oper

1.2 pes of business operation (branch office, corporation, and limited liability

p)

1 res fo ch offices/subsidiary companies

1 ation l

on ation and company seal registration certificate

1.6 Closure of br

(Reference)

1 ecialists on business establishment

2 or

Sec sas and

2 du

2.2 Relation betw esidence

2.3 Process from acqu

2.4 Types of working statuses

2

2 vi

2.7 Alien registrati

2 y perm

2 memb

2 o

(Reference)

1. Consultation w

2. Flowchart of p of operations in Japan and acquisition of visa/status

of residence

Laws & Regulations on Setting Up Business in Japan

Regarding t various procedures for establish

vigate to “ & Regulations on Setting Up Busi

p://www.j .jp/en/invest/setting_up/, where the following information

ting Your Business

amendment

ation in Japan

Comparison of ty

partnershi

.3 Procedu r registering establishment of bran

.4 Inform isted in articles of incorporation

1.5 Certificate registered company inform

anch offices or subsidiary companies

. Consultation with sp

. Procedures f establishing a representative office

tion 2. Vi Status of Residence

.1 Entry proce res

een visa and status of r

isit ligibility to acquisition of visa ion of Certificate of E

.5 Temporary visitor visa and status

.6 Reciprocal sa exemptions for temporary visitor

on

.8 Re-entr ission

.9 Family ers accompanying working foreign nationals

.10 Extension f period of stay and change of status of residence

ith specialists for procedures

rocedures for establishment

73

Section 3. Taxes in Japan

3.1 Overview of Japanese tax system for investment in Japan

3.

3.6 Overview of consumption tax

ational transactions

Cons specialists on accounting and tax support

Se

racts

4.6 Work rules

missal

sts on human resources

y and hiring staff

edures

Se

5.1 trademark and design

5.2 Japan's trademark system

5.3 Validity and term of trademark registration

3.2 Domestic-sourced income

3 Overview of corporate income taxes (corporate tax, corporate inhabitant tax, enterprise tax)

3.4 Overview of withholding income tax

3.5 Tax treaties

3.7 Overview of personal tax system

3.8 Other principal taxes

3.9 Other taxation regarding intern

(Reference)

ultation with

ction 4. Human Resource Management

4.1 Application of laws

4.2 Recruitment

4.3 Labor cont

4.4 Wages

4.5 Legislation on working hours, breaks and days off

4.7 Safety and hygiene

4.8 Resignation and dis

4.9 Japan's social security system

(Reference)

1. Corporate benefit costs

2. Labor unions

3. Temporary workers

4. Subsidies

5. Consultation with speciali

(Flowchart)

1. Social and labor insurances procedures when setting up a compan

2. Annual proc

ction 5. Trademark and Design Protection Systems

Legislation on

74

5.4 Cancellation of trademarks

emarks

gns

llectual property rights

Ⅱ elated Laws and Regulations

oreign Exchange and Foreign Trade

ontrol Law, the Corporate Law, and the Antimonopoly Act. There are also regulations under the

ights Law that

ap g a business in Japan. Depending on the type of business, it may also be

ne icense or approval from a competent authority in accordance with applicable

la

Fo reign Exchange Law)

xchange and Foreign Trade Control Law stipulates rules for the minimum

ne tment of foreign trade based on the principle of freedom of foreign trade.

W invests in Japan (such as by equity participation in a Japanese

co , or establishment of a branch in Japan), it must follow the

pr x post factor reporting in principle or prior notification in part.”

C

rations used to be based on legislation such the Commercial Code, the

Yu w, and the Law for Special Provisions for the Commercial Code Concerning Audits,

et o the new Corporate Law enacted in June

20 ty of which is to take effect in May 2006. This simplifies startups, increases the

fle , and also

es e form of limited liability company, called Godo Kaisha, that limits the

ability of members but also allows broad autonomy under the articles of association. Increased

ivestitures, and equity swaps between foreign

an in May 2007.

C onopolization and Maintenance of Fair Trade

5.5 The registration process

5.6 International registration of trad

5.7 Protection of designs

5.8 The registration process

(Reference)

1. Unregistered trademarks and desi

2. Consultation with specialists for inte

. Investment-R

Major investment-related laws and regulations include the F

C

Labour Law and the Intellectual Property R

ply to starting and runnin

cessary to obtain a l

ws and regulations.

reign Exchange and Foreign Trade Control Law (The Fo

The Foreign E

cessary control and adjus

hen a foreign company directly

mpany, provision of a monetary loan

ocedures for “e

orporate Law

Japanese law on corpo

gen Gaisha La

c. However, these laws were revised and reorganized int

05, the majori

xibility of corporate organizational structure, and streamlines restructuring procedures

tablishes a new Japanes

li

flexibility of payment of compensation for mergers, d

d Japanese companies will also enter effect

. The Act Concerning Prohibition of Private M

75

(A

otes free and fair competition by restricting private

m ever, deregulation is underway that essentially lifts

th companies and simplifies the M&A reporting system, among other

thi

Ⅲ

. Low-Interest Loans from the Development Bank of Japan (DBJ)

The DBJ offers low-interest, long-term loans to foreign companies making serious investment in

tment is expected to contribute to advances in Japan’s

Prefectural Governments

ntacting each prefecture directly, reading the Regional Information on

ETRO’s Web site <http://www.jetro.go.jp/en/invest/region>, or visiting a local JETRO Trade

n on JETRO Trade

Info

. JETRO Invest Japan Business Support Center (IBSC)

provides foreign companies with information necessary for investment in Japan.

<htt

quipped with all the tools necessary to

mediately launch business activities in Japan. The Center’s office space is equipped with all the

ntimonopoly Act)

The Antimonopoly Act prom

onopoly and unfair trade. In recent years, how

e ban on establishing holding

ngs.

Preferential Treatment for Investment in Japan

A

Japan for the first time, or to those whose inves

industrial structure, create new industries, or increase employment.

B. Subsidies, Tax Exemptions, and Low-Interest Loans from

Prefectural governments also offer various forms of support to foreign businesses investing in

Japan. The type and degree of support differs between prefectures. Interested companies can obtain

more information by co

J

Information Center. See <http://www.jetro.go.jp/en/jetro/network> for informatio

rmation Centers.

Ⅳ. JETRO Services

A

JETRO IBSC

p://www.jetro.go.jp/en/invest/investmentservices/facility.html> IBSC provides office space free

of charge to foreign companies, and its staff and advisers tap into a wide-ranging network spanning

the public and private sectors to provide a variety of information on investing in Japan. For further

information or to submit an application, please contact the nearest JETRO office .

<http://www.jetro.go.jp/en/jetro/network>

1. Provision of Free Office Space

IBSC has office space free of charge for foreigners hoping to enter the Japanese market or develop

business operations in Japan. The Center’s office space is e

im

tools necessary to immediately launch into business in Japan, including telephones and fax machines

76

with individual lines, and broadband access.

industries, and other subjects of interest to potential investors. IBSC also serves as a

ne-stop shop for information on administrative procedures and controls encountered by foreign

ompanies when entering the Japanese market.

ion on Investment in Japan

. The “Investing in Japan” Web Site

For foreign businesses interested in investing in Japan, JETRO’s website “Investing in Japan”

ive information and data on Japan’s investment environment, including

acroeconomic data, information on market institutions and incorporation procedures, and examples

hing a presence in Japan.

<ht

2. Consultations on the Japanese Market

IBSC’s full-time staff and market experts provide free advice on systems, market structures in

specific

o

c

3. Assistance with Incorporation Procedures

At ISBC, experts in fields such as corporation and branch registration, visas, taxation, and legal

affairs give free advice on the various procedures involved in establishing a company or other

business operation in Japan.

4. Introducing Support Companies and Arranging Visits to Potential Properties

IBSC can introduce agents, recruiting companies, real estate companies, and other companies that

can help foreign companies investing in Japan. Through its contacts with local governments, IBSC

also gathers information on real estate in specific regions, arranges visits to potential properties, and

sets up meetings with local government representatives.

B. Providing Informat

1

provides comprehens

m

of foreign companies that have been successful in establis

tp://www.investjapan.org>

2. Publications

JETRO publishes many books that summarize laws and procedures concerning investment in Japan.

For information on JETRO publications, see the JETRO Web page below.

<http://books.jetro.go.jp>

3. Seminars on Investment in Japan

JETRO organizes seminars and individual consultations in various countries to provide

information on a variety of themes, such as trends in the Japanese market, investment climate, and

laws and procedures concerning investment in Japan.

77

4. Library

At the JETRO Business Library, visitors can look through JETRO publications and trade and

r countries as well.

<

investment-related information from othe

http://www.jetro.go.jp/en/jetro/facilities/library>

78

List of Published Reports

and t to Japan.

t studies that have been conducted. at <http://www.jetro.go.jp/en/market/reports/ >.

. 1 Building Stones and Ceramic Tiles (1997) 2 Metal Building Fixtures (1997) 3 Nonprescription (OTC) Drugs (1997) 4 Optical Communication Products (1997) 5 Knitted Articles (1997) 6 Generation-Related Equipment (1997) 7 Waste Water Treatment Equipment (1997) 8 Recycling Equipment (1997) 9 Nutritional Dietary Supplement Products (1997)

10 Seafood Products (1997) 11 Jewelry (1998) 12 Wooden Furniture (1998) 13 Automotive Parts and Accessories Focus on the Aftermarket (1998) 14 Home Textiles (1998) 15 Wine (1998) 16 Coffee (1998) 17 Sportswear (1998) 18 Waste Treatment Equipment (1998) 19 In-home Health Care Services (1998) 20 Medical Equipment (1998) 21 Communication Equipment (1998) 22 Personal Computer Software (1998) 23 Beer (1998) 24 Fruit Drinks (1998) 25 Gardening Products (1999) 26 Environmental Measurement and Analysis Instrument (1999) 27 Glassware (1999) 28 Internet Service Providers (1999) 29 Mail Order Market (1999) 30 Cheese (1999) 31 Fresh Vegetables 32 Jam & Canned Fruit (1999) 33 Cosmetic (2000) 34 Wooden Building Materials (2000) 35 Children’s Wear (2000) 36 Electronic Commerce (2000) 37 Franchise Business (2000) 38 Swim Wears (2000) 39 Mineral Water (2000) 40 Black Tea (2000) 41 Processed Meat (2000) 42 Frozen Vegetables (2000) 43 Natural Honey (2000) 44 Mushrooms (2000) 45 Language Instructional Materials (2000) 46 Down - Filled “Futon” Bedding (2000) 47 Biotechnology - related Products (2000)

JETRO Japanese Market Report series is designed to give an outline of the Japanese market

thereby assist foreign companies in promoting the investmentes of the markeThe following is a list of titles with publication da

These reports are available on our website No

79

80

48 Retail Business (2000) 49 Business-to-Business Electronic Commerce (2000) 5

52 53

4 Wine (2001) Household Products (2001)

5555 ution Pension (2001) 6 d Products (2002) 666 ucts (2002) 6

ss Packages- (2003) ent Business (2003)

3)

nvironment: Facility Services (2004)

n and Measurement (2006) ealth-conscious Consumers and Environment and Health-friendly s (2006)

( offices at 1221 Avenue of orth Michigan Avenue, Chicago, IL; 777 S. Figueroa Street, Los

; 245 Peachtree Center Avenue, Atlanta, GA; and 1200 tre all registered under the Foreign Agents Registration Act as

rganization, Tokyo, Japan. epartment of Justice, where the required registration statement is

ble stration does not indicate approval of the contents of the rnment.

0 Senior Citizen - related Businesses (2000) 51 Herbal Products (2001)

Confectioneries and Snack Foods (2001) Electronic Commerce ; Books and Music CDs (2001)

555

6 Spices (2001) 7 Nuts (2001) 8 Cut flowers (2001) 9 Businesses Related to the Defined Contrib0 Wind Power Generation - relate1 Electronic Component (2002) 2 Oral care Products (2002) 3 Canned Fish and Seafood Prod4 Seeds and Seedlings (2002)

65 Software Products-Busine66 The Staffing and Placem67 Food Service Industry (20068 Assistive Technology Devices (2003) 69 Medical Equipment (2004) 70 Japan’s Investment E71 Biomedical (2004) 72 Retail Business (2004) 73 Engineering Software Products (2004) 74 Mail-Order Sales (2005) 75 Hotels (2005) 76 Automobile Assembly Parts (2005) 77 Nanoscale Equipment for Visualizatio78 Environment and H

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