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).

Chart 1-12: Number of Greenfield Investments in Japan

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%.

Chart 1-13: Number of Greenfield Investments in Japan in 2021 by Investor Country and Region (# of Projects, %)
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
Chart1-14: Number of Greenfield Investments in Japan in 2021 by sectors (# of Projects, %)
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).

Chart 1-15: Major Greenfield Investment Projects in Japan in 2021
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

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