JETRO Invest Japan Report 2023
Chapter2. Trends in Inward FDI in Japan Section 4. Trends in Greenfield Investment in Japan

1. Number of projects

The number of greenfield investments in Japan in 2022 (based on date of publication) increased 11.4% from the previous year to 196, the first increase in four years.

Through the second quarter of 2023, the number of cases is 83, maintaining the same pace as in the previous year (Chart 2-11).

Created as of October 20, 2023 using the database fDi Markets. Figures for 2003 to 2022 are calendar year basis. Figures for 2023 are as of the end of the second quarter (June). As the number of cases106 in 2003, 132 in 2004, 165 in 2007, 180 in 2008, 166 in 2010, 133 in 2012, 174 in 2014, 176 in 2016, 270 in 2018, 234 in 2019, 176 in 2021,202: 196 cases, June 2023: the largest number of cases in 2018: 270 cases, the smallest number in 2003. — Chart 2-11: Trends in Number of Greenfield Investments in Japan

2. Top 5 Countries and Regions / Top 5 Sectors

Looking at greenfield investments in Japan in 2022 by investor country/region, the U.S. was the largest with 57 investments, up 5.6% from the previous year. France, which was the second largest, saw a significant increase in the number of investments with 17 cases, up 240.0% compared to five cases in the previous year. The U.K., the third largest, maintained the same ranking as the previous year, despite an 11.1% decrease year-on-year. Germany, on the other hand, had 11 cases, down 45.0% from the previous year (Chart 2-12).

By sector, Software & IT services accounted for the largest number of cases at 70, up 32.1% year-on-year. This was followed by business services with 30 cases, up 76.5% year-on-year, and these sectors accounted for the majority of the total. In addition, the number of cases for communication was 14, down 30.0% year-on-year (Chart 2-13).

Chart 2-12: Number of Greenfield Investments in Japan in 2022 by Investor Country and Region (# of Projects, %)
Ranking	Country/ Region	# of Projects	Growth rate(YoY)	Share
1	United States	57	5.6	29.1
2	France	17	240.0	8.7
3	United Kingdom	16	-11.1	8.2
4	Germany	11	-45.0	5.6
5	Singapore	10	-23.1	5.1
5	Australia	10	150.0	5.1
—	Total	196	11.4	100.0

Source: "fDi Markets"（Financial Times）(as of Oct. 20, 2023)

Chart2-13: Number of Greenfield Investments in Japan in 2022 by Sector (# of Projects, %)
Ranking	Country/ Region	# of Projects	Growth rate(YoY)	Share
1	Software & IT services	70	32.1	35.7
2	Business services	30	76.5	15.3
3	Financial services	14	40.0	7.1
4	Communications	14	-30.0	7.1
5	Industrial equipment	13	0.0	6.6
—	Total	196	11.4	100.0

Source: "fDi Markets"（Financial Times）(as of Oct. 20, 2023)

3. Major Greenfield Investment Projects from January 2022 to June 2023

Looking at greenfield investment projects in Japan during the above period, there were cases such as an investment by U.S. semiconductor manufacturer Micron to upgrade production facilities and an investment in a fulfillment center (logistics base) by Amazon Japan, a subsidiary of U.S. Amazon. By sector, investment projects in the renewable energy field continued to show a presence (Chart 2-14).

Chart 2-14: Major Investments in Greenfield in Japan from January 2022 to June 2023
Company	Country/Region	Sector	Destination (Prefecture)	Outline	Date (Based on announcement/ press release)
Micron Technology	U.S.	Semiconductors	Hiroshima	Micron Technology, a leading U.S. semiconductor memory company announced plans to invest up to 500 billion yen over the next several years in1γ (gamma) generation technology at its Hiroshima Plant (Higashi-Hiroshima City, Hiroshima Prefecture) .	May 2023
Octopus Energy Group	U.K.	Renewable energy	Tokyo, Others	Octopus Energy is developing its renewable energy business in partnership with Tokyo Gas and currently has approximately 200,000 retail customers. In addition to a £600 million investment in solar and wind power, the company also announced plans to invest another £300 million to advance technological innovation and position Tokyo as a retail hub.	May 2023
Fidelity Investments	U.S.	Real estate	Chiba	Fidelity Investments announced that its subsidiary, Colt Data Centre Services, a global provider of hyperscale data center solutions for large enterprises, has begun construction of its fourth major data center in Inzai City, Chiba Prefecture, in a joint venture with Mitsui & Co.	April 2023
Amazon Japan	U.S.	Consumer goods	Hyogo	In March 2022, it announced the opening of the Amazon Amagasaki Fulfillment Center (FC) in Amagasaki City, Hyogo Prefecture. It is the largest FC of the company in western Japan, expecting to create more than 2,000 jobs in Amagasaki and surrounding areas.	March 2022
Total Energies	France	Renewable energy	Tokyo	The French leading energy company established a joint venture with ENEOS (50% stake each) in June 2022, which will implement a project to support self-consumption of solar power generation for corporations in Japan, India, Thailand, Viet Nam, and other Asian countries. In Japan, the company proposes introduction of solar power generation facilities, and implements the management of the facilities, aiming to develop more than 300MW of power generation capacity over the next five years.	April 2022
Mitsubishi Estate・Simon	U.S.	Real estate	Saitama	The company, a joint venture of the U.S. real estate developer Simon Property Group and Mitsubishi Estate, developed an outlet mall in Fukaya City, Saitama Prefecture, opening in October 2022.	October 2022
GLP	Singapore	Renewable Energy	Tokyo and the Kansai region	In February 2022, the Japanese subsidiary of Singapore-based logistics facility developer GLP announced its full-scale entry into the data-center business. In the Tokyo metropolitan area and the Kansai region, the company acquired suitable land totaling approximately 600MW, with construction starting sequentially in 2023 and completing sequentially in 2024. The company plans to invest 1 trillion yen or more in the future, aiming for supply capacity of 900 MW by around 2027-2028 at the latest.	February 2022
Google	U.S.	Communications	Chiba	In October 2022, the company announced a plan to invest a total of 100 billion yen in Japan's network infrastructure through 2024, and said that the initiative was launched in 2021, and it would open Google's first data center in Japan in Inzai City, Chiba Prefecture. The opening ceremony was held in April 2023.	October 2022
Advanced Nano Products	Korea	Electronic components	Aichi	The Korean EV battery material manufacturer established a Japanese subsidiary in July. Its production is implemented in Tahara-cho, Aichi Prefecture.	July 2022
Pattern Energy Group	U.S.	Renewable energy	Hokkaido	In September 2022, Green Power Investment (GPI), a Japanese subsidiary of Pattern Energy, an American renewable energy equipment developer, announced the conclusion of a financing contract for its constructing Ishikari Bay offshore wind power generation project with a capacity of 112MW, accelerating the construction. Subsequently, in May 2023, NTT Anode Energy and JERA announced that they would acquire GPI by the end of 2023.	September 2022
Copenhagen Infrastructure Partners	Denmark	Renewable energy	Aomori	The Danish green energy investment company announced in July 2022 that it had established a joint venture with Tokyu Land for offshore wind power generation project in the Sea of Japan off the coast of Aomori Prefecture (the south side).	July 2022
Gestamp Hot Stamping Japan	Spain	Transportation equipment	Mie	In May 2022, Gestamp Hot Stamping Japan, a Japanese subsidiary of a Spanish automotive stamping components manufacturer, announced the expansion of its new plant building to meet growing demand for components, with operations scheduled to commence in June 2023.	May 2022
Equinix	U.S.	Communications	Tokyo	In November 2022, the U.S. data center company announced the establishment of a new data center, its 15th location in Tokyo. The initial investment is 115 million dollars, and the opening is scheduled to be in the second half of 2024.	November 2022

Note: In order of investment amount based on an announcsemnet or on a press basis
Source: Prepared from "fDi Markets" (Financial Times) and announcements by each company.

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