What is the reason for Huawei to set up a research and development center in Japan?

According to the report of the Nihon Keizai Shimbun, after Apple announced that it will set up its first overseas R&D center in Yokohama, Japan in 2017, China’s Huawei Technologies (HUAWEI), the most profitable smartphone in the non-Ping camp, is also announced. A research and development center will be established in Japan. The reason why the two companies also look at the Japanese market and further set up a R&D center in the local area is that they are looking forward to the future development of the Internet of Things market where everything can be accessed online.

According to the report, the main reason why China's Huawei Technologies decided to set up a research and development center in Japan is to develop all the products into the Internet of Things (IoT) industry and look forward to the technology of Japanese companies. This is also the example of the second overseas mobile phone brand company setting up a research and development center in Japan after Apple announced plans to set up its first overseas R&D center in Yokohama in 2017. In addition, the report also pointed out that Japan will be the host country of the Olympic Games in 2020, and the demand for the Internet of Things will also be beneficial. Therefore, in the mobile industry, it has begun to warm up the attention of the Japanese market.

Huawei's ambition

Huawei Technologies, China's largest communications equipment company, will set up a research and development base for cutting-edge technologies in Japan. Huawei plans to cooperate with Japanese companies to promote the "Internet of Things (IoT)" and 5G technologies that make all objects connected to the Internet. Huawei is not only a sales base for communication equipment and portable terminals, but also an important base for research and development in virtual reality (VR).

The news was revealed by Hu Houkun, Huawei's vice president of technology and CEO of the company, interviewed by the Nihon Keizai Shimbun. Huawei is scheduled to set up a research and development base in Tokyo in 2017. Initially started on the scale of 20 to 30 technicians, and then scaled up according to the development progress.

In addition to the development base for developing products in the resident market, Huawei also has a cutting-edge technology research base called “X Lab”. In addition to the headquarters in Shenzhen and Shanghai, there is also X Lab in Munich, Germany. Tokyo is Huawei's second base overseas.

Hu Houkun said that because Japan has the latest technology available in the field of Internet of Things, and the popularity of fiber optic networks is high.

In the Internet of Things, high-speed, low-latency 5G is also an important technology. As a research object to apply 5G to the industrial field, Hu Houkun cited "traffic, energy, finance, and public safety."

Huawei Technologies also hopes that Japanese companies and certification bodies will also join the newly established research base. In the 5G field, we will strengthen cooperation with Softbank and NTT DoCoMo. In addition, we intend to cooperate with Sony in the field of VR technology, and we hope to cooperate with Toshiba and Yaskawa Electric in the industrial field.

Huawei Technologies held the International Communication Technology Exhibition in Japan in 2016. Introduced a demonstration of a smart parking lot for wirelessly looking for open space, and showed interest in the automotive field.

In addition to the portable base station, Huawei Technologies also launched high-performance products in the field of portable terminals, and launched an offensive against Japan. According to Japan's MM research, Huawei's tablet shipments in Japan in the first half of fiscal 2016 (April-September) were second only to US apples, at 17.7%. In addition, with the expansion of the mobile virtual operator (MVNO), the influence in the smartphone market has also increased.

Japan's advantage

Chinese Huawei Technologies and Apple are interested in image technology such as cameras and virtual reality (VR). In Japan, many companies, including Sony (SONY), have an advantage in this area. Moreover, including China's Huawei technology itself, Japanese companies still need to provide software technology to solve manufacturing technology problems that cannot be overcome by themselves.

In addition, Japanese manufacturers also have related technologies for sensors. As for the technologies that must be available in IoT such as machine tools, robots, and automotive-related technologies, China's Huawei Technologies and Apple hope to combine these technologies with their own communication technologies and cloud computing. In addition, in the mobile industry, in the first half of the 2000s, when NTT DoCoMo was in the "i-mode" era, Japan was also concerned by global manufacturers. Nokia, the Finnish mobile phone manufacturer, set up a research and development center in Japan. However, when the center of technology was transferred to smart phones, Japan gradually lags behind other countries in this part.

Therefore, from the technology mastered by the industry, IoT may be a golden opportunity for Japan to once again grasp the market dominance. In particular, the 2020 Tokyo Olympics will be the stage for the fifth generation of communication technology (5G), and the Japanese government has established the "IoT Promotion International Consortium" to develop and standardize technology. In addition, Japan’s Softbank acquired the world’s largest IP supplier, ARM, which was considered the world’s largest “power” in the early years of this year. It’s no wonder that Huawei and Apple are Japan has set up a research and development center.

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