Two regions that might be particularly interesting for companies operating in the deeptech sector are Kyushu and Hokkaido. Kyushu is also referred to as Japan’s ‘semicon island’ as it is home to the Kumamoto prefecture, where Taiwan Semiconductor Manufacturing Company (TSMC) in cooperation with Sony Group is building a chip manufacturing plant. The Japanese government is heavily involved in the project, given that it is providing a subsidy of almost 3.5 billion dollars, covering almost half of the total construction costs.

As the world’s third-largest economy, Japan holds significant global influence and offers lucrative opportunities for businesses. The list below highlights several reasons why Japan proves to be a promising
market for foreign companies. However, it’s essential to note that each individual company may discover numerous other compelling reasons tailored to their unique business needs and goals.

Plenty of business opportunities

• Volume for products and services is high
• Solid financial environment
• Sensitive to added value and high quality

Friendly business environment

• EU and Japan have an economic partnership agreement since 2019 which makes trading with Japan easier and more attractive.
• Introduction of new visas to make it easier for foreigners to enter the country (e.g. J-Skip and J-Find)
• More active outreach by the Japanese government to work together with foreign companies
• Special arrangements have been made to help foreign start-ups settle in the country (see J-startup Program)

Potential of long-lasting business

• Japanese are considered to be loyal and trustworthy business partners
• Japan’s long-term political stability secures a steady flow of business activities for companies
• Japanese customers have high expectations, and are willing to pay the premium price for good quality
• Japanese relationships are essential for the achievement of the desired business goals.

Skilled and loyal workforce

• Strong work ethic
• Very dedicated workers
• Highly detail oriented
• Highly educated / skilled workforce

Japan as a gateway to Asia

• Abiding by Japanese standards can be a good business selling point in other countries
• Japan as regional HQ is establishing / promoting itself or regional hub
• Corporate with Japanese companies in their overseas activities