The problem of Japan’s investment attractiveness: Modern approaches (on the example of the semiconductor industry)

Japan, one of the largest economies in the world, occupies a very peculiar position in the global direct investment market. Being the largest creditor and one of the leaders in the export of direct investments, the country remains – judging by quantitative indicators – relatively unattractive for foreign business. However, in recent years, the situation in the global direct investment market has changed significantly, and Japan’s place in the emerging structure of value chains of international companies may also change.

The study of the activities of foreign companies in the semiconductor industry in Japan allows us to conclude that the problem of attracting FDI to the country in modern conditions acquires new meanings and is considered from the point of view of economic security and sustainability of supply chains, especially in terms of supplies of critically important electronic components. This predetermined the author’s choice of the semiconductor industry as the object of research.

In the context of the spread of the friend-shoring paradigm, when global supply chains show signs of reorientation towards “friendly” countries, Japan has a chance to use its real competitive advantages to attract high-quality and high-tech investments. And the country apparently intends to use this chance, betting on ensuring “predictability” in the eyes of foreign investors, along with such advantages as the availability of qualified labor and a network of high-quality suppliers, strong potential partners for joint projects, developed infrastructure and system for protecting intellectual property rights, loyalty of local authorities and the population, strong support, including financial support, for investment projects from the Japanese government. To this one should add the high and growing demand for electronic components from the national industry, which makes Japan an attractive market. The success of the world’s microelectronics leaders in the Japanese market may have demonstration and animation effects and help international companies in other industries to take a new and unbiased look at Japan.

1. Timonina, I.L. (1989). «Tekhnopolis» – programma regional’nogo i nauchno-tekhnicheskogo razvitiya Yaponii [“Technopolis” – Japan’s Regional and Scientific and Technical Development Program]. Yearbook Japan, 109–123. (In Russian).

2. Timonina, I.L. (1992) Yaponiya. Opyt regional’nogo razvitiya [Japan. Regional Development Experience]. Moscow: Nauka. (In Russian).