Future Tech investment articles generated using Ai technology : Japan

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Saturday, March 15, 2025

From Factory Robots to Humanoids, the Robot revolution is coming and Fanuc Corp is in the thick of it!

Why Fanuc (FANUY) Dominates in Factory Robotics?

Fanuc Corporation (Ticker: FANUY) is a global leader in industrial automation and factory robotics, with a strong, worldwide presence in robotics, CNC systems, and factory automation. Here’s why it dominates:

1. Market Leadership in Industrial Robotics

Largest supplier of industrial robots globally (alongside ABB and KUKA).
Over 750,000 robots installed worldwide.
Strong presence in automotive, electronics, and manufacturing industries.

2. Highly Reliable and Scalable Robotics

Fanuc robots are known for their durability, precision, and reliability.
Provides robotic arms, assembly robots, welding robots, and painting robots for high-precision manufacturing.
Used by Tesla, Ford, General Motors, Toyota, and other major automakers.

3. Strength in CNC Systems and Automation

Dominates the CNC (Computer Numerical Control) machine market, which is key for precision manufacturing.
CNC systems power over 50% of the world’s machine tools, making Fanuc a crucial supplier for advanced factories.

4. Full Automation Solutions (Lights-Out Manufacturing)

Fanuc enables fully automated factories, including "lights-out" manufacturing, where factories run with zero human intervention.
Example: Fanuc’s own factories are almost fully automated, producing robots with robots.

5. Strong Global Presence & Manufacturing Capacity

HQ: Japan, but has factories and offices worldwide, including the U.S., Europe, and China.
Major production facilities in Japan and China allow for cost-effective manufacturing and rapid deployment.

6. Competitive Moat & Long-Term Customer Base

High switching costs: Once a manufacturer integrates Fanuc’s robots into their workflow, switching to a competitor is expensive and time-consuming.
Long-term contracts: Automakers, semiconductor fabs, and consumer electronics firms rely on Fanuc robots.

7. Financial Strength & Profitability

Debt-free with a strong balance sheet.
High profit margins due to low-cost production and high-value automation systems.
Consistent revenue from maintenance, software, and spare parts.

8. Expanding into AI and Humanoid Robotics

While Fanuc is dominant in industrial robotics, it is also investing in AI-driven automation and collaborative robots (cobots).
Possible future entry into humanoid robotics, leveraging its manufacturing expertise.

Why we might Invest in FANUY? (currently on our watch list)

✔ Global leader in industrial automation & robotics.
✔ Financially strong with high margins & no debt.
✔ Long-term growth as automation demand rises.
✔ AI and factory automation are future megatrends.

Fanuc Corporation (Ticker: FANUY) is a global leader in industrial automation and robotics, renowned for its dominance in factory robotics. This report provides an in-depth analysis of Fanuc's financial performance, growth projections, market presence, cash position, and partnerships.

Financial Performance

For the fiscal year ending March 31, 2024, Fanuc reported the following consolidated financial results:

Net Sales: ¥795.3 billion, a decrease of 6.7% from the previous fiscal year.fanuc.co.jp
Operating Income: ¥141.9 billion, down 25.8% year-over-year.
Ordinary Income: ¥181.8 billion, a decline of 21.4%.fanuc.co.jp
Net Income Attributable to Owners of Parent: ¥133.2 billion, a decrease of 21.9%.fanuc.co.jp

These figures indicate a contraction in both revenue and profitability compared to the prior year. fanuc.co.jp

Future Growth Projections

Despite recent declines, Fanuc is poised for future growth:

Revenue Growth: Analysts forecast a compound annual growth rate (CAGR) of 4.4% in revenue, reaching approximately ¥849.6 billion by fiscal year 2026.simplywall.st+1fanuc.co.jp+1
Earnings Growth: Earnings per share (EPS) are expected to grow at a CAGR of 8.3% over the same period.
Return on Equity (ROE): Projected to increase to about 25% by 2026, up from 19.3% in 2021, indicating enhanced profitability and efficient capital utilization. morningstar.com

Markets and Countries Served

Fanuc's global sales distribution for FY2024 is as follows:

Japan: ¥105.1 billion
Americas: ¥227.3 billion
Europe: ¥168.5 billionfanuc.co.jp
Asia (excluding Japan): ¥284.1 billion
Other Regions: ¥10.2 billion

The company maintains a strong presence across major industrial regions, with significant operations in Japan, the Americas, Europe, and Asia. fanuc.co.jp

Cash Position

Fanuc's financial stability is underscored by its robust cash position:

Total Assets: ¥1,926.0 billionfanuc.co.jp+1uk.marketscreener.com+1
Net Assets: ¥1,719.2 billionfanuc.co.jp
Equity Ratio: 88.6%, reflecting a strong balance sheet with minimal debt.

The company continues to generate substantial free cash flow, supporting ongoing investments and shareholder returns.

Partnerships

Fanuc has established strategic partnerships to enhance its technological capabilities and market reach:

General Electric (GE): Collaborated to produce onboard electronics for the M1A2 Abrams tank. wired.com
Raytheon: Fanuc robots are utilized in missile production at Raytheon's Arizona facility. wired.com
UK Defense Industry: Assisted the United Kingdom in creating an efficient production process for 155-mm artillery shells. wired.com

These collaborations underscore Fanuc's integral role in both civilian and defense manufacturing sectors.wired.com

Conclusion

Fanuc Corporation's leadership in industrial automation is supported by its solid financial foundation, strategic global presence, and key partnerships. While recent financial results indicate challenges, the company's proactive strategies and market positioning suggest potential for sustained growth in the evolving automation industry.

Ed Note:

We currently have no shares of Fanuc but have placed it on our watch list for now!

Thursday, August 8, 2024

D-Wave Quantum is actively expanding its presence and capabilities in Japan and Australia!!

Japan

Recently, D-Wave has introduced a new hybrid quantum solver designed to tackle complex optimization problems in various sectors, including workforce management, manufacturing, and logistics. This solver is part of D-Wave's strategy to provide practical quantum computing solutions that blend quantum and classical computing resources, enabling businesses to solve real-world problems more efficiently and effectively.

In Japan, D-Wave's technology is being adopted by several leading organizations. For instance, NEC Corporation, a prominent Japanese IT and electronics company, is among the users of D-Wave's quantum computing systems. This collaboration highlights the increasing integration of quantum computing in Japanese industries, particularly for tasks requiring advanced optimization and computational power.

D-Wave’s new solver, capable of handling up to two million variables and constraints, represents a significant advancement in their product offerings. This development is expected to further bolster their market position in Japan by addressing the growing demand for sophisticated computational solutions across various sectors.

Overall, D-Wave's strategic initiatives and technological advancements are positioning it as a key player in Japan's quantum computing landscape, with a focus on providing practical applications that deliver tangible benefits to businesses.

For more detailed information, you can refer to the latest updates on D-Wave's website and their announcements during the Qubits 2024 user conference.

D-Wave Quantum has been making significant strides in Japan, where it has established a diverse customer base across various industries. Some of the key customers and collaborators in Japan include:

NEC Corporation: NEC has been a prominent user of D-Wave's quantum computing technology. They utilize D-Wave's Leap™ quantum cloud service to enhance their computational capabilities and support their clients with advanced quantum solutions.
Tohoku University: This prestigious institution has been involved in research and development using D-Wave machines, focusing on quantum simulations and AI-related scientific research.
Ogis Research Institute: Ogis Research Institute has applied D-Wave's quantum technology to optimize recipe recommendations on their self-operated recipe site "Bob and Angie."
Shimizu Corporation: In collaboration with Groove X, Shimizu Corporation has used D-Wave's quantum computers to optimize transportation planning for construction site soil, enhancing productivity in civil engineering projects.

These collaborations illustrate D-Wave's versatile application in sectors such as finance, construction, and academia, demonstrating the practical benefits of quantum computing in solving complex, real-world problems in Japan.

For more detailed updates on D-Wave's activities and customer successes in Japan, you can visit their Japanese site D-Wave Japan (D-Wave Japan) (Business Wire).

Australia

D-Wave has been actively expanding its presence in Australia through a strategic partnership with NEC Australia. This collaboration aims to bring D-Wave's advanced quantum computing solutions to Australian businesses and government agencies. One of the key aspects of this expansion is the integration of D-Wave’s quantum annealing technology into practical applications, particularly for solving complex optimization problems. These include improving resource mobilization during natural disasters, optimizing cargo transfers at ports, and other real-world challenges.

D-Wave and NEC have been working together to deliver quantum-based solutions since 2021, and they have already implemented successful proof-of-concept projects with the Australian Federal Government and a major transport entity in New South Wales. This partnership is also aligned with Australia's National Quantum Strategy, emphasizing the importance of quantum computing in enhancing the country's technological capabilities.

Moreover, D-Wave's Leap quantum cloud service is being leveraged to provide Australian enterprises with access to quantum computing, enabling them to perform advanced research and develop innovative solutions with the support of D-Wave's quantum data scientists (D-Wave Systems) (D-Wave Systems) (MarketScreener).

D-Wave has formed significant partnerships with several entities in Australia, most notably with NEC Australia. This partnership is focused on bringing quantum computing solutions to both commercial and government sectors in the country. Together, they have worked on various proof-of-concept projects, including one with the Australian Federal Government and another with a key transport entity in New South Wales.

NEC Australia plays a critical role in deploying D-Wave's quantum technology by leveraging its extensive experience in delivering complex ICT solutions to Australian businesses and government agencies. The collaboration is also aligned with Australia's National Quantum Strategy, aiming to develop and apply quantum technologies that enhance the country’s competitive edge in the global market.

These efforts have made NEC Australia a key partner for D-Wave, helping to facilitate the practical application of quantum computing across various sectors in Australia (D-Wave Systems) (D-Wave Systems).

A comparison of quantum computing leaders, IBM and IONQ two different methods, superconduction (IBM) and ION trap technology (IONQ)!

Thursday, December 8, 2011

Talison Lithium and Sojitz Sign Memorandum of Understanding to market lithium carbonate in Japan.

Perth, Western Australia, December 8^th 2011: Talison Lithium Limited (“Talison”) (TSX: TLH | US: TLTHF ) and Sojitz Corporation (“Sojitz”) announced today that they have signed a Memorandum of Understanding (“MOU”) to discuss on a non-exclusive basis collaborative marketing and distribution opportunities in Japan for lithium carbonate produced by Talison.

Responding to growing global demand for an additional secure supply of lithium chemicals, particularly from electric vehicle battery manufacturers, Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate (“Minerals Conversion Plant”). The Minerals Conversion Plant is to be located in Western Australia with an initial capacity of 20,000 tonnes per annum lithium carbonate. Talison is targeting commissioning of the plant in its 2015 financial year.

Sojitz is a leading Japanese trading firm with extensive involvement in the battery material market and more than 30 years’ experience in distributing lithium chemicals to customers in Japan. Sojitz is interested in accessing an additional supply of lithium chemicals to support its customers in the rapidly growing lithium-ion battery market in Japan.

Talison and Sojitz foresee the potential for mutual benefit in collaborative marketing and distribution of lithium chemicals to customers located in Japan, and ensuring the sustainable growth of the lithium-ion battery market. The Memorandum of Understanding provides a framework for Talison and Sojitz to discuss collaboration opportunities on a non-binding basis and is valid for an initial period of 12 months.

Talison Chief Executive Officer Mr Peter Oliver said: “This MOU is the next step in the development of Talison’s Mineral Conversion Plant as it will enable Talison to accelerate the formation of customer relationships in Japan – one of the world’s largest markets for lithium carbonate.”

Senior Vice President Mr Yoshihiro Tamura of Sojitz commented: “Talison owns one of the largest lithium resources in the world and has already been producing lithium concentrate for many years. Sojitz is excited about Talison’s plan to produce lithium carbonate and foresees a unique opportunity for two of the leading participants in the global lithium market to work together to develop a stable secure supply of lithium for new energy markets in Japan.”

About Talison:

Talison is a leading global producer of lithium. Talison has been producing lithium concentrate for a global customer network from the Greenbushes Lithium Operations in Western Australia for over 25 years. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars located in Region III, Chile.

About Sojitz Corporation

Sojitz is a leading Japanese trading firm and the largest supplier of rare earths into Japan. As a general trading company Sojitz conducts transactions and business operations in Japan and overseas in a wide range of fields including machinery, energy and metals, chemicals and functional materials, and consumer lifestyle businesses.

To view the entire press release please visit:

http://www.talisonlithium.com/news.aspx

About Talison Lithium
Talison Lithium Ltd. (TSX: TLH | US: TLTHF) mines and processes lithium bearing mineral spodumene at Greenbushes near Perth, Western Australia. The company produces a range of lithium concentrates that are distributed to a well-established global customer base, including China.

The Greenbushes ore body is a highly mineralised zoned pegmatite with a strike length of more than 3km. The Greenbushes Lithium Operations Mineral Reserve is unique among known lithium deposits in that it contains approximately 50% spodumene.

The Greenbushes Lithium Operations have two processing plants located at the mining operations. One plant produces technical-grade lithium concentrates, the other produces chemical-grade lithium concentrate. In September 2010, Talison Lithium merged with Salares Lithium Inc which gave it exposure to prospective lithium brine projects in Chile.

Monday, September 27, 2010

China - not playing by international rules could ignite trade war with the west.

Image via Wikipedia

China's home-grown innovation drive stirs unease

Sept 27-2010 by Thomson Reuters

By Alan Wheatley, China Economics Editor
BEIJING, Sept 27 (Reuters) - In the 1860s, Chinese labourers laid track over the treacherous terrain of California's high Sierras to help complete America's first transcontinental railroad.
Fast forward, and California wants Chinese technology and capital to construct the country's first high-speed rail system.

"We look to China to build our high-speed rail, to be part of the bidding process that we are going to go through," the state's governor, Arnold Schwarzenegger, said on a visit to Shanghai this month.
Acceleration of the industrial upgrading that puts China on par with the likes of France and Japan to compete for the Californian contract will be a centrepiece of the country's five-year plan for 2011-2016 now being finalised.

As well as introducing more automation into traditional industries, the government has identified a cluster of strategic sectors that it wants to develop, including nanotechnology and new materials.
China already has in place five of a planned array of 35 satellites that will provide a navigation alternative to the U.S. Global Positioning System by 2020.

By the same date, China expects to be converting more coal into oil, gas and chemicals than any other country, according to industry officials quoted by the official Xinhua news agency.
Embracing cutting-edge technologies will help further raise living standards in a country where 150 million people still live below the poverty line.

But there is growing criticism in the West that China owes its rapid ascent to a mercantilist strategy of coercing foreign firms to transfer technology; favouring local companies in its domestic market; and now launching a new breed of national champions overseas to undercut foreign rivals who gave them a technological leg-up to start with.

Feelings are running so high that the heads of German industrial giants Siemens and BASF publicly complained about an uneven playing field in China in the presence of Premier Wen Jiabao back in July.

General Electric <GE.N> Chief Executive Jeffrey Immelt made similar comments in private that found their way into the press.

"I don't condemn China. It's very smart policy to look out for yourself. However, China has joined the world's rules-based system, and these things are not acceptable in this system," said James McGregor, a senior counselor in Beijing for APCO Worldwide, a public affairs and communications firm.

SIGNS OF SHIFTING POWER
China is no different from many countries that set product standards tilted to their own firms or promote home-grown innovation. But Beijing is striking a combative stance at a time when the West, especially the United States, has a sinking feeling that power is leaking away to Asia in the wake of the global financial crisis. Unemployment is high, confidence is low.

"All we're asking China to do is play by the rules. Get your thumb off the scales. Let us go in and compete equally," U.S. Trade Representative Ron Kirk said last week. While Congress is preoccupied with America's big bilateral trade deficit with China, which it blames on the yuan's exchange rate, many Western investors are more exercised by the difficulty of doing business in China. Rules drafted last November that in effect barred Western firms -- even those with long-established operations in China -- from competing for government contracts badly undermined goodwill in sections of the international business community.

Beijing has since withdrawn the offending regulations, and Wen, the premier, has repeatedly reassured foreign firms that they will be treated equally. But the damage has been done. "I talk to a lot of foreign technology executives and they may come to Beijing smiling, but behind closed doors they are rethinking their China plans. This has woken them up," said McGregor, author of a critical study of the array of industrial policies underpinning China's drive for 'indigenous innovation'.

BRITTLE ATMOSPHERE
Duncan Clark, chairman of BDA China, an investment consultancy, said China was displaying "high IQ, low EQ" on the issue. The natural rise of domestic competitors was psychologically threatening to foreign companies that have prospered in China.But he said Beijing needed to acknowledge that Western complaints were genuine in many cases; protectionism was a reality in sectors from wind turbines to smart cards.
"We're just not seeing many people queuing up to enter into the market given the perceived barriers," Clark said.

The danger for the world economy is that attitudes are hardening even though China is just setting out on its high-tech odyssey. Without mutual trust, the potential for friction is vast as Chinese firms make inroads into high-end Western markets.China, for instance, exported medical equipment worth $6.6 billion in the first half of 2010, up 27 percent from a year earlier.A recent study by Deutsche Bank said China's technical competence in the equipment manufacturing sector was now at a "golden stage" that would enable it to grab export market share from Japan, South Korea and Germany.

China was likely to undergo an upgrading of its export industries in the next decade similar to that seen in Japan 30-40 years ago -- but on a scale three times larger, the bank said. "The huge domestic market and localisation policy mean that China is best placed to enjoy economies of scale, which will likely offer growing cost advantages to domestic producers against global competitors," Deutsche said. In short, the tinder is dry and nationalist winds in both the United States and China risk fanning any fires that break out.

The need to strike a new balance is urgent, McGregor said. "At the end of the day China has to find a way to build its own innovation system to create its own strong companies. But it's going to have to play by global rules, otherwise we're going to have trade wars," he said. (Editing by Mathew Veedon)