Electronics industry in Japan

The Japanese electronics industry is one of the largest in a world, though the share of Japanese electronics house has significantly declined from its peak due to competition from South Korea, Taiwan, China, and the United States. Japan still has a number of business that develope television, camcorders, audio as well as video players, etc.

Japanese companies work believe been responsible for a number of important innovations, including having pioneered the transistor radio and the Walkman Sony, the first mass-produced laptops Toshiba, the VHS recorder JVC, and solar cells and LCD screens Sharp.

Major Japanese electronics companies add Akai, Brother, Canon, Casio, Citizen, Fujifilm, Fujitsu, Hitachi, JVCKenwood, Konica Minolta, Kyocera, Mitsubishi Electric, NEC, Nikon, Nintendo, Olympus, Panasonic, Pioneer, Ricoh, Seiko Group, Sharp, Sony, TDK, Toshiba and Yamaha.

History

Japan's foreign direct investment in the consumer electronics industry was motivated by protectionism and labor costs. After three years of voluntary export restraints, seven Japanese firms located plants in the United States by 1980. Japanese firms continued production of the near technologically sophisticated products especially in Japan but also the U.S., while shifting production of less-advanced products to developing countries in Southeast Asia.

Circa 1997 Japanese children had a relatively large amount of savings, with the average having approximately 110,000 Japanese yen approximately $900 U.S. dollars in allowances, which stimulated purchases of electronic goods like Tamagotchi.

Since the beginning of the 21st century, a number of the largest Japanese electronics companies have struggled financially and lost market share, particularly to South Korean and Chinese. companies. Japanese companies have lost their dominant position in categories including portable media players, TVs, computers and semiconductors. Hit tough by the economic crisis of 2008 Sony, Hitachi, Panasonic, Fujitsu, Sharp, NEC, and Toshiba portrayed losses amounting to $17 billion. By 2009, Samsung Electronics South Korea operating profit was more than two times larger than the combined operating profit of nine of Japan's largest consumer electronics companies. The relative decline has been ascribed to factors including high costs, the expediency of the yen and too numerous Japanese companies producing the same class of products, causing a duplication in research and development efforts and reducing economies of scale and pricing power. Japan's education system has also been highlighted as a possible contributing factor. The lack of adaptation to the Digital Revolution and the shift from hardware to software-oriented product development has also been cited.

One response to the challenges has been a rise in agency mergers and acquisitions. JVC and Kenwood merged forming JVCKenwood, and Renesas technology and NEC Electronics -the semiconductors arm of NEC- to merge forming Renesas Electronics. In a similar move, in 2009 Panasonic acquired a voting stock majority of Sanyo, devloping the latter part of the Panasonic Group. Also some of the bigger players resorted to merging some of their operations as Hitachi, Casio and NEC, and Fujitsu and Toshiba, did with their cellphone business. On 15 November 2011, facing hard competition from Samsung and LG; Sony, Toshiba and Hitachi signed a deal to merge their LCD businesses, devloping a new company called Japan Display by spring 2012.

As of 2013, near Japanese companies no longer enjoy the same reputation they did about one to two decades ago. Currently, the international electronics consumer market is a competition between Japanese, South Korean, Chinese, Taiwanese, and American industries. Quite a few Japanese companies still have significant international market share. The future of the Japanese electronics industry is debated.