JETRO Invest Japan Report 2022
Chapter1. FDI Trends in the World and Japan Section5. Trends in Greenfield Investment in Japan
1. Number of projects
The number of greenfield investments in Japan in 2021 (based on the date of announcement) fell 9.9% from the previous year to 173, marking the third consecutive year-on-year decline (Chart 1-12).
Source: "fDi Markets" (Financial Times) (as of June 23, 2022)
2.Top 5 Countries and Regions/Top 5 Sectors
Looking at greenfield investment in Japan in 2021 by investor country/region, the U.S. marked the largest number of projects at 54, despite a 12.9% decrease from the previous year. It was nearly three times larger than that of Germany, the second largest, and far surpassing other countries and regions (Chart 1-13). The U.K., the third largest, rose 50.0% from the previous year to 18, while Singapore fell 36.8% to 12.
Looking at by sectors, as in previous years, software accounted for the largest number of projects at 50, although it fell 20.6% from the prior year (Chart 1-14). Communications grew significantly by 81.8% to 20, followed by business services with 17, up 6.3%. Semiconductors also jumped to 11 from 2 in 2021, up 450.0%.
| Ranking | Country/Region | # of Projects |
Growth rate （YoY） |
Share |
|---|---|---|---|---|
| 1 | United States | 54 | -12.9 | 31.2 |
| 2 | Germany | 19 | 11.8 | 11.0 |
| 3 | United Kingdom | 18 | 50.0 | 10.4 |
| 4 | Singapore | 12 | -36.8 | 6.9 |
| 5 | China | 7 | 16.7 | 4.0 |
| — | Total | 173 | -9.9 | 100 |
| Ranking | Sector | # of Projects |
Growth rate （YoY） |
Share |
|---|---|---|---|---|
| 1 | Software & IT services | 50 | -20.6 | 28.9 |
| 2 | Communications | 20 | 81.8 | 11.6 |
| 3 | Business services | 17 | 6.3 | 9.8 |
| 4 | Industrial equipment | 13 | 0.0 | 7.5 |
| 5 | Semiconductors | 11 | 450 | 6.4 |
| — | Total | 173 | -9.9 | 100 |
3. Major Greenfield Investment Projects in 2021
Among significant greenfield investment projects in Japan in 2021, investment activities in the semiconductor sector stood out, including Taiwan Semiconductor Manufacturing (TSMC) as well as a large-scale investment plan by Micron Technology reported in the media. In addition, data centers and renewable energy-related investment projects showed their presence (Chart 1-15).
|
Date (based on announcement) |
Company | Country/Region | Sector |
Destination (Prefecture) |
Outline |
Investment amount (US$ million) |
|---|---|---|---|---|---|---|
| July | Taiwan Semiconductor Manufacturing (TSMC) | Taiwan | Semiconductor | Kumamoto | Established a subsidiary to provide foundry service with the aim of responding to the strong global demand for semiconductors. | 7,500 |
| June | Princeton Digital Group | Singapore | Communications | Saitama | Started construction of a large-scale data center with a capacity of 100 MW. | 1,000 |
| August | Envision AESC | China | Electronic components | Ibaraki | Decided to establish one of Japan's largest manufacturing plants in the Industrial Parks in IBARAKITOWN. The plant will manufacture next-generation lithium-ion batteries for electric vehicles. | 393 |
| April | Canadian Solar Inc (CSI) | Canada | Renewable energy | Fukushima, Ibaraki, Hiroshima | Started construction of solar power generation projects, which include the flagship Azuma Kofuji Project (Fukushima Prefecture) of 100MWp, as well as projects totaling 43MWp in Ibaraki Prefecture and Hiroshima Prefecture. | Undisclosed |
| October | Goodman | Australia | Real Estate | Chiba | Announced development of a data center for ST Telemedia Global Data Centres, a major data center operator in Singapore. | Undisclosed |
| February | Taiwan Semiconductor Manufacturing (TSMC) | Taiwan | Semiconductor | Ibaraki | Decided to establish TSMC Japan 3DIC Research and Development Center within AIST in order to conduct joint research with AIST on new materials for three-dimensional integrated circuit (3DIC) implementation. | 186 |
| August | Pacifico Energy | US | Renewable energy | Hyogo | Started construction of a large-scale solar power plant on a former golf course site. The scale of power generation is 121 MW. | Undisclosed |
| October | DSL. Japan | Germany | Chemicals | Hyogo | A joint venture between the Japanese subsidiary of German chemical giant Evonik and Shionogi has expanded its production line for high-performance gel-type silica to meet increased demand for reducing environmental impact. | Undisclosed |
JETRO Invest Japan Report 2022
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