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APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY JPRS L/9722 - ~ May 1981 - .Ja a~~ Re ort ~ p - ~F'OUO 30/81) FBIS FOREIGN BROADCAST iNFOR('~IIATION SERVICE FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 ~ NOTE ~ JPRS publ.ications contain informa.tion prima.rily from foreign newspapers, periodicals and books, but also from news agency _ _ icransmissions and broadcasts. Materials from foreign-language sources are translated; those from English-language scurces = are transcribed or reprinted, with the original phrasing and other chaxacteristics retained. Headlines, editorial reports, and material enclosed in brackets are suppl.ied by JPRS. Processing indicators such as [Text] or [ExcerptJ in the first line of each item, or followitig the last line of a brief, indicate how the original information was processed. Where no processing indicator is given. the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words or names preceded by a ques- _ tion mark and enclosed in parentheses were not clear in the original but have been supplied as appropriate in context. _ Other unattributed parenthetical notes with in the body of an item origina te with the source. Times with in items are as given by source. The contents of this publication in no way represent the poli- cies, views or attitudes of the U.S. Government. COPYRIGHT LAWS AND REGULATIONS GOVERNING v^WiVERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSE~IINATION a ~F THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONI.Y. APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 ~I - - FOR OFFICIAL USE ONLY JPRS L/9722 ' 8 May 1.9 81 3 JAPA'V REPORT (FOUO 30/81) CONTEN7S _ MILITARY Japan's Share of the Defense Burden Analyzed _ (Akimasa Negishi; SANKEI, 12 Mar $1) 1 ECONOMIC Oil Serves as Bond To Strengthen Japan~Mexican Relations (Shigeo Tani; BUSINESS JAPAN, Apr 81) 4 - SCIENCE AND TECHNOLOGY Progress in Biotechnology Development Described - (Various sources, various dates) 7 Legal Protection for New Plants Interferon Research Industrial Competition Newspaper Commentators' Views, by Y, Shioya, et al. iJ.S.-Japan Tie-Up To Seek Mass Production of Interferon (BUSINESS JAPAN, Apr 81) 19 Japan Launches Domestically-Produced N-II Rocket (BUSINESS JAPAN, Apr 81) 21 Hitachi Projects Total Factory Operation by Computerized Robots (BUSINESS JAPAN, Apr 81) 23 Hitachi Challenges IBM With High-Speed Giant Computer (BUSINESS JAPAN, Apr 81) 25 - IC, Machine Tuol Industry Conti.nues To Expand (BUSINESS JAPAN, Apr 81) 26 Telecommunications Head Discusses Progress in Communications System (Arinobu Morizumi; BUSINESS JAPAN, Apr 81) 30 - a - [III - ASIA - 111 FOUO] - FOR OFFICIAL USE ONLY ` APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY NTT's Communicationa Technology for Information- Oriented Society Deecribed (Masaya Tamauchi; BUSINESS JAPAN, Apr 81) 32 a a New Heat Pump Syatem To Achieve Great Energq Savings Described - (Takehiko Shimura; BUSINE5S JAPAN, Apr 81) 38 _ Aircraft Industry Development Increases (NEKKEI SANGYO SHIMBUN, various dates) 42 Helicopter Industry Industry's Joint Ventures - - Fanjet STOL ~ ' Aircraft Parts Manufacturers New Commercial Air~-ra�t ~ Direct Step-On Wafer Macl-,ine To Be Z'ocus of Super LSI War (NIKKAN KOGYO GciIMBUN, various datea) 5i Electro-Mechanical Manufacturers To Cut In-House IC and LSI Production (JAPAN ECONOMIC JOURNAL, 14 Apr 8~.) ~1 'JAPAN ECOI30MIC JOURNAL' Comments on Shipping Ind~iatry - (Editorial; JA~PAN ECONOMIC JOliRNAL, 14 Apr 81) 72 Mitsubishi Chemical To Produce Carbon Fib~r Out of Coal = _ (JAPAN ECONOMIC JOURNAL, 14 Apr 81) 74 Western Interests Drive To Get Gene Engineering Patentb in Japan (JAPAN ECONOi~fIC JOURI~TAL, 14 Apr 81) 75 - Sanyo Establishes Woi~ld Recc~rd With Photovoltaic Efficien~y Rate (JAPAN ECONOMIC JOURNAL, 14 Apr 81) 76 ~ Fuji Develops High Power Type Sun Battery (JAPAN ECONOMIC 30URNAL, 14 Apr 81) 77 Unique Species of Fungus-Producing Gellul~ae Identified (JAPAN ECONOMIC JOURNAL, 14 Apr 81) 78 Electrotechnical Laboratury Finda New Wuy To Make � Amorphous Silicon (JAPAN ECONOMIC JOURNAL, 1/+ Apr 81) 79 Photo Typesetting Arabic Lettar P1aCe Aeveloped - (JAPAN ECONOMIC JOURNAL, 14 Apr 81) 80 - - - b - , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICiAL USE ONLY MILITARY _ JAPAN'S SHARE OF THE DEFENSr, BURDEN ANALYZED ~ Tokyo SANKEI in Japanese 12 Mar 81 p 3 - ['Special Report 1981' Column, Article by Akimasa Negishi: "Japar.'s ~.*.andstill Posture Not To Be Tolerated"] [Text] "If things keep going like this, Japan's international position, which _ centers on our relations with the United States, will only get wo.rse." This _ sense of crisis is spreading throughoa~t the government and the LDP as the May U.S.- Japan suIIanit meeting approaches. This is because, with increasing strain in tihe international situation, the United States is asking Japan for active participa- tien as an ally in the peace-keeping struc ~re. It is 3sking Japan to assume a - greater share of its own defense burden. The Suzuki government is p*:epared to ~ ` parry this with the excuse of "domestic circumstances" and the optimistic approach: "TheyTll understand us if we talk things over." Less than 2 months _ remains until the summit meeting. The Japanese leaders need to reco~nize more clearly that a change is being demanded, from sliding by with peace handed to us on a platter to helping bear the burden of ~aintatning a peaceful order. Other- wise, Japan cannot help beco~ing an orpha.n in the world again. ~ Government Putting on Cool Front to Weinberger Proposal "What we expected has f inally arrived.. This is the author~tative version of the U.S. demand for an increased Japanese dPfense effort." This was how most LDP and government off icials, especially in the Foreign Mi;~istry, took the news when U.S. Secretary of Defense Weinberger emphasized the "establishment of a system for . division of labor in defense among the Western allies" in a report to the U.S. Senate Military Affairs Committee on 4 March. However, Prime Minister Suzuki and - _ his associates Xeacted moxe coolly. Chief Cabinet Secretary Miyazawa remained impassive. "This is nothing now. Wha,t does he mean [by division of labor]?" Chief Cabinet Secretary Miyazawa has a great deal more international awareness than most and there is no reason that he would not understand what Secretary Wienberger is saying, In short, Chief Secretaxy Miyazawa is feigning ignorance. Right now the. Japanese Gov~:rnment, led by ~rime Minister Suzuki, is not psycho- logically prepared to accept the U.S. view of the world situation and acC positivel,y in undertaking a greater defense responsibility befitting the new situation. Pezhaps that is why the Chief Cabinet Secretary, as the govexnment representative, can do nothing but play dumb. 1 FQR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY ~ It might be more accurate to say that Prime Minister Suzuki and his grou~, rather - than net being psychologically prepared, nave simply misunderstood the meaning of the U.S. demand. There is an element of playing up to one's superiors in Prime Minister Suzuki's excuses: 1�~Tapan is a peaceful country. It cannot perform a military role." Also, when he tells the reporters assigned to fol~ow him, "Thc American posture is not so very strong. It is ~ust as I have said," it sounds like an attempt to reassure himself. - When he states, J~apan will play an economic and technical assistance role," he seems to forget that America is demand3ng that Japan build up its defense capa- bility as well as "playing an economic role." He also neglects the fact tha.t the _ , percentage of Japanese assistance to other countries remains to the right of the _ - deciin~l point. Eimerica More Serious Than Imagined ~ The United States is serious. Officials of the new Reagan administration have repeatedly made statements on the U.S.-Japan def ense issue and "misunderstanding" on the part of Japan is becoIDing strained. N1r Abshire, an important member of the team for transition between the Pormer Carter administration and the new Reagan administration and Director of the Center for International and Strategic Studies - - at Georgetown University, met with the prinxe minister and explained the American position. "We are not a~king Japan to pla~y a different role than in the past. We are not expecting new action by the Self ~ef ense Forces. We do want you to tighten up your own defense." He did not demand any of the things which Prime Minister Suzuki is anxious about like going beyo~~d the limit of the peac:e con- stitution or undertaking a military role in the Middle East. However, we should not overlook the fact that he emphasized tightening up the defense of Japan. The views of the United Sta.te~ and Ja,pan are completely opposite on the idea that ` "percentage is not a problem." In congressional testimony on 28 January, Secretary of State Weinbergex said, "Percentage is not a problem. However, the budget neces- sary to improve defense must be raised as much aa necessary." In shoxt, he meant . to say, "Do not put a ceiling on defense buildup with percentages." This U.S. posture must be recognized as harder, not softer, than before. During budget - formulat3on at the end of last year, the government took the approach that "expendituxes for defense and social welfare should be about the same." This wilZ not do. Former Pxime I~iinister Ohira Had Made Up H~s Mind Last Ma,y, in the meeting between Prime Minister Ohira and former ~resident Carter, Japan announced for the first time that ~.t wa,s an al?y of the Western na.~ti~ns, led by the United States. because of tthe dra,mat~c changes in the interr~a,ti~nal situa- tion such as the Afghanistan situation atid the captivity of the Amer~can hostages in Iran. Ohira promi.sed to make a sex~ous effort to build up 3apanese defense cagability. Mr Ohira had ~usr as much a sense of mission in rebuilding public - ~inances as Pxime Minister Suzuki, However, he had made up his mind that the time had come to stop getting a free ride with world peace basea on the efforts of the United States and Euxope and take an act~ve role ~n crea~ing peace. Aftex . 2 FOR OFFICIAL JSE ONLY r APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 - FOR OFFICIAL USE ONLY retuXning to Japan, he inst.~ucted former Defense Agency Director-General Hosoda to "work seriousl~ to see how fa~ we can possibly improve our defense capability." Even after Mr Ohira's death, a special ~eiling remained fo~ defense spending, a 9.y percent increase compared tc. the previous year. However the Ohira legacy stopped right there. With the emergence of the Suzuki cabinet, defense capability was "buried" under domestic issues. The Suzuki cabinet has been described as a carry-over from the Ohira cabinet but it has not taken over Prime Miniater Ohira`s new concept that reversed post-war Japanese foreign policy-- the playing of a signif icant role as an ally of the Western powers. A Return to "Perry-Style Diplomacy" The U.S. leadership 31as clearly state~ that it "will do nottiing to embarrass ths prime minister of Japan." The May meeting between U.S. and Japanese leaders will probably end without incident and without bridging the present gap in L'.S.- Japanese relations. However, once it is finished, it is certain that the thought will arise in the United States that, in the traditi~n of Commodore Perry, there is no ~lternative to pressure diplomacy with Japa~. And this American feeling will cast a dark shadow on future U.S.-Japan relations. However, on the other hand, the coming U.S.-Japan summit meeting will be the per- fect opportunity to put an end to the tragic repetition of post-war Japanese fore:ign policy. In order to do this, the leaders of the Japanese Government, beginning with Prime Minister Suzuki, must accurately grasp the present inter- national situation. A~s an ally of the Western nations, Japan must take a big . step toward creatiiig peace through defense efforts that have international signi- ficance. As "one of the Western powers," a standstill posture cannot be tolerated any longer. COPYRIGHT: Sangyo Keizai Shimbun Tokyo Honsha 1981 9651 CSO: 4105/149 ~ 3 FOR OFFICIAI. USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY E CONOMI C OIL SERVES AS BOND TO STRENGTI~N JA.PAN-MEXICAN REIATIONS Tokyo BUSINESS JAPAN in English Vol 26, No 4 Apr 81 pp 41-47 ~Article by Shigeo Tani, Americas-Oceania Division~ International Trade Policy Bureaus Ministry of International Trade & Iudustry ~Text~ - (TH an area of 1,973,000 I?~velop:~:ent, and Mr. Jorge Diaz V V square kilometers - some five Serrano, govemor of PEMEX, Mex- - times that of Japan and the third ico's national petroleum public cor- largest in Central and South America poration, - and a population of about 67 Yn addition, the late Prime Minister - million, the second largest in Cer~tral Masayoshi Ohira vis~ted Mexico in May and South America, Mexico is now 1980, follr:;;~~ by Masumi Eza:a, a _ attracting interrational attention as a special envoy dispn~ched by the , well developed industrial country arld government who attended the Japan a major oil producing one in the machinery fair in 1~9exico, and Parlia- non~OPEC region. mentary Vice Minister of Intemational ' It is well known that the country Trade and Industry Yamamoto who has been deepening its relauonship visited the country in November last � - with Japan in recent years. Especially yeaz. This January, Rokusuke Tanaka, its increasingly claser relations with Incernational Trade and Industry Japan since last year through frequenc Minister, visited Mexico. Active per- personal exrhanges and its efforts to sonnel exchanges have thus been made enhance its mutual dependence with between Japan and Mexico on both Japan in economic ties foretell the official and pdvate levels. bright future of the relationship of With such continuing contacts be- these two countries. tween the two countries, the full-scale . Its closer ties with Japan in recent supply of' oil was started last year by years were pioneered b}� the visit to Mexico ta Jspan and two joint venture ~ Japan in April 1980 of Jos~ AndrEs projects in the steel industry, one Oteyza, Minister of National Property producing large-bore pipes and the and lndustry and Mrs. Jos~ Lopea other for manufacturu~g cast and ~'ortillo, wife of President Lopez in forged steel products, were initiated, the same month. In October 1980, foretelling expanding economic rela- an economic conference between both tions between the countries in the - countries was held in Tokyo. Mr. Raul coming years. ` Sai:nas Lozano, Director General of Reflecting the closer ties in eco- the Foreign Trade Agency, came to nomic fields, mutual trade has sharply Japan to attend a Mexican exhibition. expanded in recent years. Two-way Other important guests from Mexico trade in 1980 � amounted to some last year included Mr. Julio Rodolfo ~2,150 million, including $1,220 mil� Moctezuma, chauman of the Commit� lion from Japan and $930 million tee for the Adjustment of National ~ r OR OFFICIA~ USE OI~LY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 - FOR OFFICIAL USE ONLY from Mexico, about 3.5 times that in permission must be obtained in ad- 1976. vance. Though the weight of crude oil - The trade relations are character- among its export items has sharpiy ized i~y the facts that both countries increased in recent years, judging from are important to each other as trade the Mexi.can government's basic policy partners, the trade is mutually bene- of continuing crude oil exports only ficial, and the trade balance is favor- within a framew~rk in which currency able to Japan. income accrued from such exports can As for the first fact, Mexlr,p be soundly absorbed into the nation's ~ sumes second place in Japan's uade industrial production setup in the with Central and South American process of its industrialization, it is not countries, though Mexico assumes likely that its crude oil exports wilY only 29th place in Japan's exports and increase dramatically in the future. (In 30th place in Jap3r?'s imports. Japan the Mexican government's plan for BSSUi37CS sixth place in Mexico's ex- energy sources development an- - ports and second in Mexico's imparts. nounced last November, it was decided Japan has thus become a highly impor- that foreign cunency income accrued tant cuuntry for Me;cico piaying a from oil exports should be maintained vital role in the Mexican economy. As at below 50% of the nation's total Japan is expected to import from foreign currency income.) Mexico has Mexico an increasing supply of oil, been also holding to its basic policy of deepening its reliance on this source, avoiding excessive reliance on the U.S., the present characteristics of the tra~;,. and exerting efforts to diversify its relationship are expected to continue trade partpers. Against this back- for a long time to come. ground, Mexico has been insisting that As for the second point, Mexico its trade with Japan should be bal- _ impQrts from Japan such important anced without regard to crude oil and industrial products as r:tachines, equip- wants 3apan to expand its imports of ment and steel products, while Japan agricultural and fishery products, and imports from Mexico silver (30% of chemical products. Japan's total imports from Mexico), As for the trade imbalance between crude oil (20~10), cotton (10%) and salt the two countries, Japan's trade sur- (10%). In order to foresee the trend of plus sharpiy contracted to some 5~90 � the trade between the ~ountries, it is million in 1980 and it is expected that necessary to review Mexico's trade the balance will reverse this year as policy along with the fact that Japan's Japan's crude oil imports from Mexico trade with Mexico r:s been alway: will markedly increase. favorable. Mexico's exports to other In order to faciliiate the trade regions uf the world, however, have relations with Mexico, howeve:, Japan been expanding year after year since it must keep the imFartance of the crade started the full-scale supply of crude with Mexico in mind. When Japanese oil in 1977, and its total exports in International Trade and Industry Min- 1979 expanded some 2.7 times over ister Tanaka visited Mexico this the figure for three years earlier. January, he proposed the idea that Nevertheless, as Mexico's demand Japan would dispatch a trade mission for equipment and mater;al for its to Mexico to promote Japan's imports - economic development sharply in- from Mexico. It is important for Japan creased from 1978 along with the to further exert efforts to promote progress of its ir.a~~:trialization, its mutual understanding to maintain trade deticit has tended to expand. amicable relaaons with Mexico. The figures reached $1,900 million in Talks between both govemments 1978 and as much as S3,'_'00 million in concerning the establishment of two 1979. In order to compensate for such joint ventures for producing steel huge deticits, Mexico has been exert- products, including large-bore pipes ing effurts to promote exports of and cast and forged products, were farming and fishing products, and concluded last August, and it was _ chemical products while r~siricting decided that Japan s governmental imports of some 200 items of non- funds (from 7he Economic Cnopera- _ essential products by adding them to tion Funds) were to be provided for the list uf items for whose import Japanese-Mexican joinx ventures in 5 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 I ~ . FOR OFFICIAL USE ONI 1( Mexico for the first time. Then invest� chat level at the earliest possible op- ment companies were established ir~ portunity. Great expectations are a Japan for these projects. Following placed on ihis possibility. However, - this, Grupo Industnal NKS, a joint judging from Mexico's eGOnomic poli- venture c~mpany, was set up in cy, and iu oil policy which is directly ~ Mexico last September to produce cast connected with it, there are some and forged products, and Yroductora difficulties in the way of any sharp Mexicana de Twberia was established increase in crude oil supply. Further� _ in Mexico last November to manufac- more, the rype of crude oil which is , ture lazge�bore pipes. expected to iacrease in supply is what Minister Tanaka, on his visit tc is known as Maja crude oil, a heary- ~lexico this January, also pledged to quality eil. If the increase is made in extend funds to Mexzco in the form of this type of crude oil, Japan's demand mixed credits including yen credits structure for oil products would ~e - amounting to ~�30 billion and export affected because of the peculiar nature credits for Mexico's project to elec- of this type of crude oil. Also, in trify the national railways and expand refining it, there would be some tech- - facilities. The funds w~.! be provided nical problems. Concessi~:~s must be ~ when requirements are ouc:in~d by the made by both governnents until the - Mexicaai government in concrete increased supply is materialized. - - terms. Japan's investments in Mexico have The ~lexican govem.r.ent places become active in recent years �~~ith t~ie expectations also on the possible co- number of investmants reaching some operation of the Japanese government 16~ valued at $730 million as of the ; - for such future pro~ects as the c~n- end of last August. This assumes ?.3% . struction of industrial ports, develop- oi Japan's total overseas investments, ment of touriat resources and develop- and 12th place among countries in ment of the fislung industry. The which Japan has ever invested. Mexican government hopes to obtain Mexico wants Japan to invest more ' both cap:tal and technical cuoperation in the country. The Organization to from Japan for these projects. Promote [nvestment in Mexico was set Mexico boasts huge crude oil re- up in Japan in 3anuary 1980 and has ~ serves. Its confirmed oil reserves been active in facilitating such invest- - amount to some 60 billion barrels, ments as symbolized by its sec~ding a according to a presidential message mission to make a survey on the pos- released in September 1980. Mexico's sibilities for such investments in intention to diversify its sales of crude Mexico. oil in order to develop its ec~namy It is not necessarily easy to pro- and Japan's policy to diversify the mote overseas investments because of sources of crude oil imports corre- the strict foreign exchange law in spond well with each odier's needs. In Japan. But we would like to place August 1979 it was agreed by both expectations on the furtherance of governments that Mexico was to pro- tem t~n `~~tome omote mutual under- vide Japan with 100,p00 baneis per 5~~~ g on both official and private day in 1980. The supply was started levels. g last April. The daily volume was final- Lastl we would like to oint out ty achieved last October as pledged in Y~ p _ the agreement with the average daily the facts that the Exhibition of supply of some 35,000 barrels Mexico of Tomorrow held last Octo� throughout 1980. ber in Tokyo under the co-sponsorship J Since the late Prime Minister of the Japan External Trade Organizl- - Ohira's visit to Mexice in May 1980, tion and the Foreign Trade Agency of ~ the Japanese government has been L'~e Mexican government was tremen- strongly requesting Mexico to supply dously successful and the exhibition of ~ 300,000 barrels of crude oil per day Japanese-made machines and tech- _ starting in 1982 at the latest. And nology will be held again this May in Japan's [nternational Trade and [ndus- Mexico. Mexico will hold another try Minister Tanaka successfully exhibition in Tokyo in the fall of ; gained a pledge from the Mexican 1982. These activities will serve to government that it would exert strenu- strengthen the friendly relationship ~ ous efforts to increase the supply to between these twu nations. O - COPYRIGHT: 1981 The Nihon Kogyo Shimbun CSO: 4120 _ 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOk OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY PR~~GRESS IN BIOTECHIJOLOGY DEVELOPMENT DESCRIBED Legal Protection for New Dlants Tokyo NIKKAN KOGYO SHIMBUN in J~~panese 22 Jan 81 p 1 [Text] With the newly legislated "seedling law," the Mir.;.stry = of Agriculture, Forestry, and Fishe~~~s has confirmed its policy of protecting new varieties of agricultural, forestry and fishery products to be developed by gene splicing or cell fusion, and has begun research. ihe objeci.ive is to promote the _ Japanese br~edi~rrg industry, to counter the exclusive technologies of Euro-American congl.omerates and others for developing new - varieties, anci to prepare against future food problems. At the same time, the ministry has established the new variety pro- tection system as the third intellectual proprietar~� right, _ along with copyrights and industrial proprietary rights, and it plans to take the leadership in the biotechnology developmeiit ~ program. Leadership in Biotechnology Development 5ought The seedling law is a new law enacted in. De~ember 1978 to protect new plant varitieG. It is a radicai revision of the agri~ultural se~dling law, which was designed to protect only the names of varieties. As a result of the revision of this system, the newly created varieties themselves will be protected. Presently, 365 crogs are protected, including food crops such as grains, industrial art crops, v~getables, feed crops, fruit trees, f lowering plants and trees, mushrooms, seak*eed, and so farth. One big difference from the patent law is that it includes field examination - in which experts examine growth conditions, etc., of the applic3nts~ varieties. At the time this new variety protection system started, the chief objective was to - register new varieties bred by using conventional techniques of asexual reproduction such as cutting and graf ting, and sexual reproduction by pollination. - However, due to the recent remarkable developments in biotechnology, new techniques - for developing new plant variE.ties, such as gene splicing and cell fusion, are high~ lighted! and the groblem of p~-otecting these techniques has emerged with importance. - In the field of cell fusion i~i particular, t~:e Max Planck Institute of West Germany - created a plant that did not previously exist, called a"pomato," a hybrid of a tomato and a potato, thus sigmaling the fact that the practical use of technology in the field of food production is near. 7 ' - FpR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAi~ USE ONLY These techniques have come to be valued due to the circumstances that 1) the development of agricultural chemicals has become restricted because of environmental safety problems, 2) oil-dependent forms of agriculture have become difficult to main- tain due to the energy crisis, and 3) the technological development related td chemical fertilizers has reached a peak, and gYowing revolutionary new varieties is regarded as the only way to tide over a worldwide foo~ cr.isis in the future. Because df all these reasons, giant capitalists in Euro-Ameri.can countries have focused their attention early on the development of new varietiec by gentic manipu- lation and cpll fusion. For example, corporations such as FMC, ITT, r4onsanto, Pfizex, Union Carbide, Upjohn, and Royal Dutch Shell Y~=ave embarked on this i.r,.dustrial field. Furthermore, in an effort to have exc'~usive genetic saurces, the United States and the - Soviet Union have taken a daring step by ';spatching exploratory gr~~ups to the develop- ing countries to seek the seed~ which become the source of extant grains. (Many of the developing countries are native habitats of grains such as riee, wheat, etc.) In view of these circumstances, the Ministry af Agriculture, Fore~try, and Fisheries - made the judgment that p~ant breeding is no longer in a pastoral state, in which it can be left to eager farmers or seed breeders as in the past, and has confirmed its plan to counter the Euro-American technological monopoly by promoting a breeding industry with full use of the seedling law. To enforce it, they plan to grant exclusive rights, similar to the case with patented industrial inventions, to new plant varieties produced by gene splicing or cell fusion to promote part~cipation from industrial fields such as pharmaceuticals, chemistry, food, etc., and elevate Japanese bree~ing :.echnology to the top world level. However, because of its involvement with the food problem, the granting of exclusive _ rights to such technology has a far greater influence on soclety than do industrial patent inventions. Therefore, the ministry plans to study a flexible operational. method of "arbitration system" by asking opinlons of antitrust lawryers. Regarding breeding technology by genetic manipulation or cell fusion, the international office of the Internationa? Alliance for Protection of New Plant Varieties also has expre~sed its intention to protect [new varieties] by means of the above treaty. The plan of the Ministry of Agriculture, Forestry, and Fisheries has nttracted great international interest as well. Interferon Research Tokyo NIKKAN KOGXO SHIMBUN in Japanese 26 Jan 81 p 3 [Text] Although the image of the "arrival of a cure-all anticancer dream drug" has faded, interferon still has the possi?~ility of being - thP new drug of many dreams. Full-scale research will begin on the effi~acy of the drug to ~letermine the facts. The Ministry of Health = and Welfare is studyii~g the efficacy of int~rferon with its research _ project into the clini~sl applica.tion of interferon (R. Kono, team director; chief, central virus laboratory, National Health Institute), and arrangements have been made for the project to receive supplies 8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY : of three kinds of interferon that are considered to have the - highest practical use in the world as pharmaceuticals. In . addition to the F-type interferon of Toyo ~3ayon (uses human diploid cells), Midori Juji will supply 2 billion units of - the L-I type (uses leukocytes) of interfaron mflnthly beginning this Marc?:, and 5umitomo Chemical Co. , Ltd . will suppl,y the L-II type (uses transformed leukocytes) developed by Wzllcome. Clinical studies will begin on each type. Furthermore, inter- feron produced by the recombinant DNA technique is expected to _ be added to the clinical studies in a project supplied by Roche, .an American c.ompany, during the year . Thus , interf eron from all over - the world will be gathered in Japan. The clinical project will use these interferon varieties and move into the second sta~e of _ research in 1981, focusing on "cancer" and "hepatitis." - F~:11-~cale C~inical Research A. U.S, firm will also participate this year. "Special studies on the clinical apnlic~tion ot interferon" is the world'S leading systematic clinical research project on interferon. The Ministry of Health and - Welfare indugurat~d it in JF'Y 197~3, and the first stage of the clinical studies will be completed in March. These studies have exa:nined the clinical efficacy of interfer.on, which was labeled a cuY~e-all drug, by using 1) eye, 2) skin, 3) cancer, and 4) hepatita.s patients. The interferon used was the F-type, developed independently by Toyo Rayon. As a result, they obtained the con~irmation that interferon "can become a medicine" against eye diseases (viral disease patients) (Kono) . This view was endorsed by _ data from cases that did not heal with ch~motherapy but were cured by the use of interferon, or that resulted in an efficacy that provided healing which was more - nearly spontaneous than was tiue with chemotherapy. - When interferon was administered topically in 61 ~cases (111 injection sites) ~f . various ~~iral warts, it was prove:n to have superior efficacy by causing the disappear- ance of warts in 102 sites. In addition, in eight cases of patients with malignant ' melanoma, a type of skin can~er, revolutionary data wer~ obtained : complete dis- _ appearance occurred in four cases, more than 90 percent disappeared in two cases, and 50-90 percent disappearPd in one case. These clinical cases gave the impression that intetferon may be used as a cure-ail drug, However, this interferon did not demonstrate the efficacy expected at the beginning as the :nost valuable drug for "anticancer effect." Effects were exsmined in patients ~ with acute leukemia, gastric cancer, malignant lymnhoma, and myeloma, but "no case ~ - showed effectiveness" (Kono) . This result was entirely differEnt from a report from Sweden stating that favorable resu]_ts were obrained after using interferon to treat osteosarcoma. The reason, as interpreted by Kono and Y. Sakurai, director of the chemotherapy center of the cancer research group, is that the Swedish interferon, unllke the F-type interferon of Toyo Rayon, is of the L-type, yielding a di�ferent result. , 9 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 - FOR OFFICIAL USE ONLY Another conceivable reason is that these two kinds of interferon have different physical properti~ s. The F-type has a molecular weight of 20,000 to 22,000 and shows ~ slightly unstabl e characteristic to heat; the L-type, on the other hand, is comprised of two kinds of molecules, one weighting 15,000 to 17,000 and the other Z1,000 to _ 23,000, and is Chermally stable. In addition, "although both F-type and L-typa interferon are comprised of 166 amino acids., the arrangement of the amino aci,35 is different." (K. Taniguchi, research staff in the cancer research groupts chemistcy section); this is al~o considered to have a bearing on the difference. - Therefore, different interferons can be produced by different kinds of cells from which interferon is prepared, and more new types are expected to be added in the - future. At the s ame time, it has become nPCessary to study which interferon is effective against which type of cancer. For example, this specificity is revealed in the fact that the F-type interferon of Toyo Rayon, when injected into a brain tumor, caused it to shrink. This is an achievement unprecedented in the world, and further clinical studies have become necessary. As interferon is analyzed, new questions also arise, such as what the effect of its combined use with chemotherapeutics would t~e. Consequently, a new stage has arrived, as pointed out by Sa.kurai: "Although it = was revealed that no drastic effect is present, numerous studies must be advanced by spurring clinical studies using more interferon." A large quantity of ~nterferon is needed for thi s. Based upon pust examples, it is said that a to'tal of 200 million = units of interferon per cance;: pati:ent is indispensable. In order to study tfiQ various types of cancers, an enormous amount of interfeLnn is necessarye Toyo Rayon is currently supplyin.g the clinical research project of the Ministry of - Health and Welfar e with 2 billion units of interferon monthly, and [the company] plans to increase it to 4 billion units by 1985, Toyo Rayon's interferon uses ~ human diploid cel ls (fibroblasts) as the interferon-producing cells. - The technique involves growing these cells on a glass surface by using a multiple-step plate culture te~ hnique, and then stimulating these cells with ~oly IC (a polymer i of inocinic acio and cytidine monophosphate) to have them release interferon into ~ the culture media. A reasonable tecfinique has been perfected, and the remaining _ problems involve how to mass-culture the diploid cells that have a proliferation limit, and how to extract interferon that has high purity. In order to perfect this technology, the firm was granted a commissioned development fund (870 million yen) by the Research Development Corporation of Japan (Y. Takeyasu, - , managing director) , and it is working to solidify tr?e structure that enables it to _ supply sufficien~ interf eron. Moreover, the firm "is also preparing for interferon - production using the recombinant DNA technique" (Y. Hara, assistant chief, R&D plan- ning division), considering the massive supplies expectea in the future. r Midori Juji has also p3rticipated from the beginning in the applied clinical research of the Ministry of Health and Welfare. It was commissioned (a fund of 880 million yen) by the Research Develogment Corporation of Japan to develop interferon, as was Toyo Rayon, and it is producing interferon. The company plans to begin supplying _ 2 billion units of interferon per month, beginning in March. 10 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 - FOR OFFICIAL USE ONLY - This f irm uses human leukocyte~ to produce interferon. The technique involves adding Sendai virus of Newcastle Disease virus to leukocytes as an agent to induce them to release interferon into the culture media. The purification of interferon took time, but the problem has been solved and the structure for supplying interferon is in order . ' Since this {nterferon is the same type as the Swedish interferon, it can be used as - the ma terial to determine its effectiveness against osteosarcoma, and the clinical results are being looked forward to. If, however, the clinical resu.lts are the same as Toyo Rayon's, the drug cannot hold great expectations as a new carcinostatic agent. - _ Consequently, it is being watched attentively. On the other hand, the interferon - that Sumitomo Chemical imports from the British Wellcome Foundati~n is obtained from lymphoblasts, cancerized leukocytes. Because of the simple proliferation of lymphoblasts,_ - it has the merit that interferon can be obtained in large quantities. _ However, there is a risk that the interferon produced will become contaminated with foreign carcinogenic substances, and so its use is limited to cancer patients. As an L-type interferon of a slight different typ~, however, its efficacy is also being _ watched, and it~ results are also looked forward to. No other country is systematically studying these three types of interferon, and the _ Japanese research project or.~ clinical application is attracting attention in various countries, with the ar:*i,cipation of unveiling interferon and solving many mysteries . _ (Note) Interferon--Cells of animals infected simultaneously by two kinds of viruses - are af fected by only one of them, but when the two kinds of viruses act in combination, . the ce lls receive a destructive blow. A substance that causes this interference of - viruses was confirmed in 1950 and was named "interferon," meaning a substance that causes an interference. Consequently, it demonstrates various effects on viruses. It does not act directly - on viruses, however, Uut demonstrates actions such as increasing the activity of a substance that inhibits viral proliferation in the cells inraded by a virus, or producing antivlral. proteins. ~ Studies on the clinical applications are being made, but the most important fact is that interferon cannot be used "clinically" unless it is produced by human cells. - Industrial Competition Tokyo NIKKEI SAPIGYO SHIMBUN in Japanese 29 Jan 81 p 1 ' [Text] Major chemical companies began to spUrt all at once for commercialization of pharmaceutical and chemical products using biotechnalogical means such as genetic engineering. Since they had fallen behind Euro-American ~aterprises in the practical - development of inteferon, the so-called "new dream drug," they ~ set out with vigorous rollback tactics, sensing the necessity for ~ some breakthrough in the field in order to win future international , completion. At the same time, the present synthetic chemistry , industry, centered on the petroleum chemistry, has virtually reached a fully developed technical stage, and no major technical innovations _ 11 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY such as have been seen in the past are in prospect with respect _ to lowering costs. Thus, various firms are hoping to lead other _ _ firms in bioengineering technology, which holds unknown possibilities. Industrial competition focusing on biotechnology will be more keen in the future. . Mits~ibishi Chemical Industry and Showa Denko in the forefront _ Major Chemical firms involve~ in biotechnology (Corporate Names) (Name of Research Facilities) (Recent Specific Activities) : Mitsubishi Chem. Life Science Research Inst. Developing new pharmaceu- - Industries, Ltd. Mitsubishi Chem. Ind. ticals using gene-splicing technique. Sumitomo Chem. Co., Ltd. Biological Chemical Research Goal of practical develop- In~titute ment of interferon by cell culture Showa Denko Biochemical Research Laboratory Commercialization of amino acids by semi~ynthetic processes, using fermenta- tion techniques Mitsubishi Petro-chemical Biochemical Research Dept., Mass production by recom- _ Co., Ltd. Central Research Labortary binant DNA of enzymes - for screening pharmaceuticals Mitsui Petro-checmial Biochemical Research Dept., Work designed to develop Ind. Scientific Research Laboratory pharmaceuticaZs through mass culture of plant cells At present, Mitsubishi Chemical Industries, the biggest firm in the chemical industry, is regarded as having the greatest accumulation in biotechnology. Although that firm exceeds its competltor, Sumitomo Chemical Co., Ltd., in sales, it is behind Sumitomo Chemical in the fine chemical field of pharmaceuticals, agricultural chemicals, _ etc. For this reason, it wishes to maintain its position as the top manufacturer _ of all chemicals by developing new pharmaceuticals using biotechnology as the weapon. Mitsubishi Chemical Industries confirmed its policy to mass-produce certain - physiologically active substances manufactured in the human body by using the gene- ` splicing technique. As in the case of Eli Lilly in the United Srates and Hoffmann- LaRoche in Switzerland, which have as their zarget the practical development of insulin and interferon, respectively, [Mitsubishi Chemical's] intention is to remove from human cells those genes that have the information to manufacture the suostances, and to mass-produce them by splicing them into E. coli, etc., which have extremely - rapid growth. Compared to Lilly and Roehe, which are already in the clinical testing stage in which the mass-produced pharmaceuticals are administered to man, the company _ is lagging behind, as it is still in the gene "splicing" test stage. However, the company is determined "to commercialize in 5-b years" (M. Niwa, director, Life - Science Research Laboratory, Mitsubishi Chemica~ Industries, Ltd.). - On the other hand, Sumitomo Chemical Co., imported the technology for manufacturing interferon from the British pharmaceutical manfacturer Wellcome in August last year. Besides recombinant DNA, there are several techniques to mass-produce substances 12 FOR OFFICIAL U5E ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY such as interferon that the human body produces. The technology that Sumitomo Chemical imported is a technique for the continuous cultivatic+n of one type of neoplastic leukocyte. The company's plan is to enter the intPrferon market, which is considered promising for now, by borrowing another firm's technology. The company, also is full of fighting spirit to catch up with Mitsubishi Chemical. H. Masatomo, managing director, states: "We would like to emphasize independent pharmaceutical development using genetic engineering technology, etc., in the future." Opposing them, Showa Denko recently established a technique that enables it to lower the production cost of tryptophan, one of the essential amino ~cides, by using fer- - mentation technology. They plan to market the tryptophan manuFactured by this process as a feed additive sometime this year. Amino acids are made in the living body to begin with. Until now, however, the mass production process for industry has been possible only through chemical synthesis. But because it is a substance pro- duced by complex reactions in the body, its synthesis is difficult and costly. Showa Denko's technique is called a semisynthesis process; man synthesizes the easy half and relies for the rest on the fermentation action of bacteria which has the property to manufacture tryptophan. According to industrial sources, Mitsui Toatsu Chemicals Ind. is planning to venture into the amino ~~id field using fermentation technology, and it is also developing a similar technique,. In addition, Mitsui Petrochemical Ind. emphasizes plant t:Cssue culture and is aiming to market the products by using this technique sometime this year. Mitsub~shi _ Petrochemical Ind. also is mass-producing enzymes by recombinant DNA for pharmaceutical - screening. Thus, various companies are showing active movement. Furthermore, various companies are now beginning to emphasize the development of new chemical substances ~ and the establishment of new processes for existing chemicals by applying biotechnology techniques. Newspaper Commentators' Views Tokyo NIHON KEIZAI SHIMBUN in Japanese 30 Jan 81 p 8 [Y. Shioya, K. Murakawa, Y. Takagi, Science and Technology Section; Moderatdr: T. Kono, chief, Science and Technology Section] [Text] Biotechnology fever has been aroused in industrial ~ circles. It was triggered by the development of genetic engineering, a"magical" new technology in wtiich revolution- ary new medicines are manufactured using E. coli. Does biotechnology hold a force for innovation comparable to electronics, currently in its heyday, as is being whispered in industrial circles? In addition, progress in biotechnology - is even about to realize a cloned man, previously conceivable only in the world of science f iction, as well as revolutionary genetic therapy. Regardin~ biotechnology, in which expectations for innovative technology and fears of the "manipulation of life" are mixed, journalists in charge of science and technology for this newspaper exchanged their views. ~ 13 Fc?R OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY 'The fever backstage - Moderator: Biologis ts are amazed at the rec2nt biotechnology boom in industrial circles, saying: "We never have had such an experience." Particularly, "genetic engineering fever" s eems to ~e conspicuous in Kabutocho [Japan's Wall Street] and Kitahama.... A. In the stock market, it is said that regardless of food, medicine, or chemicals, names that appear to have the slightest involvement are being bought one after another. _ For example, the sto ck of a firm that deals with a reagent called restriction enzyme, which is used in genetic engineering, is being bought even though the enzyme does not contribute very much to the sales. Things have become a~it overheated. ~ C. Hewever, it has recenCly been disclosed that there is a trend to formulate a joint common resear ch organization centered on Toyo Rayon and on prominent companies _ of Che Mitsui group such as Mitsui Toatsu Chemicals, Mitsui Petrochemical Ind., etc. It is certain that they have seriously begun considering the necessity of developing biotechnology. Moderator: Speaking of competition, I understand there is a shortage of talent in - - this field, and outs tanding researchers are being vigorously recruited worldwide. B. In Japan, also, those firms with foresight have been making efforts to train personnel by dispatching researchers to Euro-American universities, etc., �or several years. However, the laggards that have just beco?ne aware of this importance, after being stimula t ed by the recent biotechnology fever, have begun hastily secur- ing talent. Consequently, the shortage of ta1PnC has suddenly become apparent. ~ Japanese researcher s in this field are very active. However, the majority of them - are working in Euro-American universities or national research organizations. There ~ are apparently 40-5 O researchers in the United States alone. Some firms prepared a talent map of Japane se researchers in the United States and are planning to recruit researchers from among them. But researcfiers in this field have by nature a strong belief in advancing research based on their own scientific interests. Tt is question- able whether they wi 11 easily respond to corporate persuasions for applicat.ion first and commercialization first. C. Th~~ Mitsui group's p.lan to formulate a common research organization also seems to have as an objec tive the formation of support for talent. A. A surprising fact recently is that enterprises in different fields, such as shipbuilding firms, plants, engineering, etc., have also begun to show interest in biotechnology. For example, at Mitsui Shipbuilding, Chairman I. Yamashita and his subordinates are enormously involved. However, they do not directly handle micro- organisms or genes, as do the pharmaceutical or chemical companies, but place emphasis on develop ing peripheral technology such as fermentation tanks or fermen- tation plant contro 1 techniques. Moderator: Approximately what scale of growth potential does the biotechnological industry have in the future? ~ ~ 14 FOR OFFICIAL USE ONLY i APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 ~ FOR OFFICIAL USE ONLY C. There is an estimate of 3 trillion yen in one of the biotechnological fields, - genetic engineering concerns, alone. However, this is a very rough calculation, and it is difficult to forecast the future market scale now. It i~ certain, however., that this is a basic technology in which great expansion can be expected in the future. Moderator: Compared with the electronics industry, which produced television and computers, how does it fare as a future technological innovative force? , A. The electronics of today is a technology that first biossomed because of the modern physics introduced in the first half of the 20th century--especially the basic = science called quantum theory. Biotechnology is about a leap forward as an~industrial technology based on biology, which made rapid progress after World War II, especially focused on the genetic engineering that appeared due to achievements in molecular biology, which attempts to understand life phenomena on the chemical level. B. Nowever, biotechnology is not going to manufacturz new products like television sets or computers. I think it is a production technology for manufacturing esisting c~mmodxties at low cost by conserving energy. Consequently, the fields of applica- tion are extremely broad, from pharmaceuticals to petrochemicals, agriculture, and energy. But, it must compete with conventional technology. I suspect that the road to commercialization may be harsher than expected. Moderator: Euro-American countries are apparently e:�en more enthusiastic about _ biotechnology than Japan. C. In Europe, government and private bodies are working together. Sem~government, semiprivate biotechnology research developmex~t ent.erprises are being established one after another, such as GBF (a bioenginaering research institute) of West Germany, Transgene of France, Celltech of England. A. In the United States, they do it a little differently. Although it i.s not quite a revival of the pioneering spirit of the West, private venture business has tfie leadership and ~s selling its technology to the world. B. Genentech, Cetus, Genex, and Agrigene.... Genetic venture is indeed in full bloom. Moderator: What is formi~dadble in the United States is the fact that giant capital is backing these venture~. C. Cetus is backed by SOCAL, a major oil company. It is said that they are building a test plant in order to put to practical use the applied technology of the enzyme industry for petrochemical processes developed by Cetus with an investment of 15 million dollars. B. Genentech is collaborating with the top insulin manufacturer, Eli Lllly, and the world's biggest pharmaceutical firm, Hoffmann-La Roche. Moderator: Because of the technological accumulation in the fermentation industry, Japan is regarded as an advanced country in biotechnology, but we should not be caught off-guard. It appears that the Japanese Govern~ment also has begun to emphasize biotechnology so as not to fall behind Euro-American countries. 15 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 _ FOR OFFICIAL USE ONLY B. The next-generation basic industrial technology program of the Ministry of International T!:ade and Industry is a starter; the ministries of Agriculture, Forestry and Fisheries and of Education, as well as the Science and Technology Agency, each planned pro~~cts independently, causing the ill effect of divided administration, ~s ltsual. _ J The Ministx�y of Agriculture, Forestry, and Fisheries, by mobilizing the work force - of the affiliated research organizaCions, emphasizes that it is the main house for biotechnology; the Ministry of InternationaZ Trade and Industry counters with the technological and research association system, gathering vitality from the private - sector; the Science and Technology Agency also asserts its position, using the role of "regulatory agency" as its shield mainly at the life science promotion division of the National Health Institute. Light and Shadow ~ Moderator: Against this excessive enthusiasm, c�riticism of the promoti~n of biotechnology has been heard late~~C._ _ B. Progress in reproductive control techniques such as extracorporeal fertilization, cloned animals, surrogate mothers, etc., are related to biotechnology, and such shaded areas of this technology and thPir social effects are increasingly being pointed out. _ A. In the field of animal husbandry, the surrogate mother has alread}T become a ~ practical technique, and fertilized bovine eggs of superior stock have been trans- planted into "poor stock cows" to have them deliver calves of good stock. Reproductive control techniques, such as transplantation, artificial insemination, and multiple ovulation to Froduce twins and triplets, have precedence in the livestock industry, - but according to the experts they are directly applicable to man if he wants them. C. In that sense, the problem of life science reYated to social ethics is widely debated, and in fact, it is in need of some rules foi research. For the moment, howe~ver, we have only the ste*_-eotyped warning to "put a brake on reckless: research." A. A certain scholar has stated: "Things are,only at the stage of gaining the awareness of the general public." To be sure, it is necessary first of'all to have accurate knowledge regarding biotechnology. Otherwise, it will end ~ip in an unpro- - ductive argument between the cheap proponent theory for acquiring budget and research - funds and the allergic-type opponent theory. I believe it is necessary to have more _ specific discussions. Moderator: The question is whether social values and ethics allow it. C. Technical feasibility and whether or not to use it in human society are entirely different questions. It is improper to relate the cloned mice in Switzerland directly to cloned man and to the mass product~on of Hitler's copies, and thereby to insist on terminating such research. \ A. The time when we will be able to prdduce a copy of a man from a single human dermal - cell is still a long way off. Cloned mice is a big topic in the sense tfiat it consti- _ tutes research necessary to detect carcinogenic mechanisms or the process of cellular differentiation. = 16 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY - Moderator: Genetic engineering came into the limelight because of the msnufacturing of interferon by an American firm, Genetech, and of a pure amino acid by Ajinomoto, among othezs. What else is attracting attention as a technology to support - biotechnology? . B. The "tissue culture" well known as Toyo Rayon's interferon manufacturing process and the "cell fusion" being advanced by Mochida Pharmaceutical to develop a manufactur- ing technique for immunodiagnostic agents are attracting attention. . C. Tissue culture means sampling a part of the human body and propagating the cellular tissue. It is difficult to grow and propagate cells in an artificial environment _ such as a container, but if it can be done we can grow pancreatic cells and have them directly produce insulin for diabetes. An artificia~ ~.iver also becomes feasible. Moderator: What is produced by cell fusion? _ C. Immune antibodies that kill viruses and bacteria by attaching themselves to them are produced by white blood cells. It is difficult to p~oduce such antibodies - coznme:cially by artificially creating an environment identical to the inside of _ animal bodies. However, there are hardy white blood cells that grow anywhere. So they are fused with white blood cells that produce immune antibodies by using special viruses or special chemicals, and hybrid white blood cells are formed and cultured. The idea is to use antibodies produced in this way as diagnostic reagents. - A. The Max Planck Institute of West Germany is producing a"pomato" by fusing the cells of a potato and a tomato. Although it is possible to grow tfie plants hyT~rid cells into an adult plant, as in the ~omato, it is very difficult to grow ttae hybrid cells of animals or animal and plants into a perfect parent. Moderator: It is said that the final goal of biotechnology is the bioreactor.... A. This is a future technology seen in science fiction, whereby chemical factories no longer are gigantic plants, and everything is ~ade by the system. B. A living oYgani~m can be called an "ultraprecision chemical-production factory." If it can be applied to industrial production, a very efficient system can be - developed that will save energy and resources. Bioreactors simulate this system. C. Living organisms produce substances by combining many kinds of higfily efficient catalysts (enzymes). Althougn that stage has not been reached, Tanabe Seiyaku for the first time in the world made practical a technique for fixed enzymes where one _ kind of enzyme is fixed by enveloping it with macromalecul2s so that the enzyme can be used for a long time. It is still the world leader. Mcderator: However, an ideal bioreactor cannot be made unless genetic engineering, - cell fusion, tissue culture, etc. are comuined properly. A. For example, create a copious amount of microorganisms in which the genes of a milk cow are inserted by genetic engineering, and then fix all of them. Next, add chopped hay into the bioreactor tank, and milk will come out the b ottom. Such a dreamlike mechanism is not entirely inconceivable. - 17 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY ' B. However, rather than develop somet~iing like an "~mpty treasure chest" by spending an immeasurable amount of money and time tY?e skillful conversion of existing inefficient chemical processes has priority. For example, Cetus Corp. has developed a sysXem to - use fixed enzymes in the process of manufacturing ethylene oxide and propylene oxide, raw materials for synthetic fibers and plastic by oxidi.zing ethylene and propyl.ene. A. Biotechnolog~?, which is sometimes called tt~e "second atomic power," Yias a broad base, and each field should be suhjected to tY~orough assessment and be individually defined. Otherwise, it may we11 be terminated after mereYy clancing to the tune with- out being accepted by society. ' C. There is also a problem of application for bio'logical agents. I believe we have come r.o the stage where certain ordinances should be made as soon as possible between - the developing party and the receiving society. CUPYRIGH.T: Nihon Keizai Shimbunsha 1981 ?722 CSO: 4105/117 - 18 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 _ FOF OFFICIAL LS~; ONLY ~ SCIENCE AND TECHNOLOGY U.S.~JAPAN TIE-UP TO SEEK MASS PRODUCTION OF INTr.RFERON Tokyo BUSII~SS JAPAN in English Vol 26, No 4 Apr 81 pp 28~29 IT~t l Green Cross, a drug manufacturec bacilli, it is safer ~nd the technologies based in Osaka, announced on Febru- for cultivation and commercial pro- , ary 12 that ii hari signed an agreement duction are very advanced. Although with Collaborative Research Incorpo- single-cell organisms, they belong to a rated of Massachusetts, a leading high order, ha~:.^~ functions similar to American gene~ic resesrch company, cells in human beings, animals and commissioning t}ie lattcr to conduct plants which make recombination of research on mass produc~ion of inter- genes more diffici~lt than in th~ case of feron ([F) through recort,bination of colon bacillus germs. If recombination yeast genes. The use of yea.~t bacteria, can be successfully achieved, it will be which is said to be more suited than possible to obtain a much greater colon bacillus germs for commercial volume of proteins, such as interferon, production of IF, is cevolutionary and from yeast bacteria than from colon without precedent. It is planned to bacilli. complete the development of the U? ~t?e mass production of IF using process for mass production by May, Yeast bacteria, Green Cross claims that � and efforts will be rnade to get com- ~e process is very much the same as in mercial production under way in a fermenting beer. After it receives yeast _ year and half. bacteria with recombination ger~es from Collaborative Research, the com- Green Cross has also reached an pany says it will seek to start com- agreement with GENEX of Maryland mercial production within a year, or to produce albumin from serum two at the most. Cost is expected to protein through colon bacillus germs, a be less than one-tenth ~that of inter- two-year research and development feron made from white blood cells - project. aow being used in clinical tests. A These agreements are tha first joint dosage of one million units will cost effort on recombination of genes be- less than $5. tween a Japanese firm and American As a result of these latest tie-ups, compa�ies. If plans procced as sched- the drug industry in Japan will be " uled, gene engineering, which is re- thrust into the field of gene recombi- garded as the last industrial frontier, nation on its home ground. Interferon will have made great progress toward is regarded as a ne~~v "dream drug" that practical application of recombinant holds the possibility of controlling genes, cancer and all types of diseases caused Yeast bacteria has been used sin~ce by viruses, but at the present time olden times as the fe:menting ageni in there is an acute shortage of the drug the production of alcoholic beverages, for clinical use. It is believed that the such as wine, beer and sake, and in recombination of yeast genes, along condimeiits such as soy sauce, as well with the recombination of colon bacil- as for pickling. Compared tc coton 19 ~ FOR OfFiCIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY lus genes, will quickly solve the supply New Phase in Gene Engineering problem which is holding up progress (Comment by Professor Yasuharu in gene engineering. Oshima, expert on fermentation at Also, if albumin can be commercial- Osaka University) ly produced, efforts will surely be The commercial production of made to produce other drugs from yeast bacteria genes through recombi- serum. It may not be long before nation opens up a new phase in gene similar techniques will be applied to engi,neering. My feeling is: Has it al- antibiotics and vaccines. ready progressed so far? As can be _ It will be the first time in the wocld seen from the history of rice wine that commercial production of inter- production, yeast bacteria can be culti- - feron will be achieved through a re- vated on the basis of experience alone. combination of yeast bacteria genes. It is extremely suited for commercial _ There is also no precedent for drugs production. If recombination of genes ~ _ manufactured from serum being put to prosresses successfully it will be pos- practical use. sible to use a vaziant yeast to produce Gene research in Japan has just rice wine fust and then medical drugs. started. Since gene engineering is now The Japanese are confident of their - being taken up in both the public and fermentation technology. If experts in private sectors, the latest tie-up agree- the ~elds of chemicals, organisms and ments aze ~ure to rock the entire drug fermentation collaborate under capa- - industry. ble leadership, the development of gene recombination in Japan compa- - rable to that in the United States is - _ very possible. I believe that Japan can catch up with the United States in this field just as it did with motor vehicles - and computers. COPYRIC~IT: Z981 The Nihon Kogyo Shimbun ~ : CSO: 4120 ~ 20 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 J FOR OFF[CIAL USE ONLY SCIENCE AND TECHNOLOGY JAPAN LA,UN(~iES DOMESTICALLY-PRODUCED N-II ROCKET Tokyo BUSINESS JAPAN in Engl.ish Vol 26, No 4 Apr 81 pp 25-26 ~Text~ The first N-II, Japan's largest Since September 1975, the - rocket, which will enable Japan to National Space ~gency 1-~as used the launch its own satellites for practical N-I rocket to launch six artificial use, was shot into the atmosphere satellites, among them the Ume No. 2, carrying ~he experimental satellite a utility satellite to observe the iono- ETS-4 at 5:30 p.m. on February 11 sphere. 3ince 1976, the Agnecy has from Tanegashima Space Center in been endeavoring to develop a rocket Kyushu. of a higher power. In comparison with The Pd-II was launched for the N-I, N-II is 2.8 meters longer and 45 purpose of confirming its ability to lift tons heavier. Also, the solid�fuel sun- stationary satellites, and succ.essfully plementary rockets attached to the put the ETS-4 in transfer orbit, one first stage were increased from the stage prior to the stadonary� orbit. N-I's three to nine. T7xat the satellite entered the destined With the N-I, the flight was radio- orbit was confirmed in the afternoon controlled by the ground station, but ~ of February 1'?, after detailed calcula- with the N-II, the inertia inductive tions were ,nade when the satellite had method of correcting orbital erior was circled around the earth and returned used for the first time to control the to pass over Japan. After 7 p.m, on the flight automatically by eZectronic - 11 th, the National Space Agnecy an- instruments loaded in the second stage nounced, "The rocket made its flight of the :ocket. Also, whereas N-I is accurately and the satellite separated capable of lifting satellites of only the from the rocket '7 minutes 34 sec- 130-kilogram class into stationary - onds after launching and is presumed orbit, N-II is capable of lifting satel- to have entered the destined orbit." lit~s of the 350-kilogram class and has _ The satellite was named "Kiku No. 3." three times the accuracy of its pre- According to the program, Kiku decessor in placing a satellite into the No. 3 was scheduled to be placed ia an planned orbit. ' elliptical orbit witn a perigee of '30 ETS-4 is the first large satellite to kilometers and an apogee of 36,000 be produced solely with Japan's own � _ kilometers on a 10-1/2 hour cycle. technr~logy. It is cylinder-shaped, '_.8 Kiku No. 3 is Japan's 21st artificial meters tall, 2.1 meters in diameter, satellite. It is the 18th launched by a and 64 kilograms in weight. Because Japanese-made rocket. the main purpose of this launching is 21 FOR OFFIC[AL USE O1~iLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 ~ FOR OFFICIAL USE ONLY - ~ to confirm the tlight eFficiency of the N�II rocket, the satellite will not be stationary. The main body is loaded with numerous electronic instruments ~ utilizing the most advanced tech- nology in space development, such as an earth scanning sensor and pulse plasma engines, which will undergo space ogeration tests for approxi- mately three months. N-II Rodcet Resume: The N�II ' rocket is Japan's lugest rocket, replac- ing the previous N�i rocket, and is capable of lifting stationary satellites ~ of t,he 3S0-ldlogram class. It is 35.4 _ mcters in length, 2.4 meters in dia� - meter, weighs 134.7 tons and has three stages. The first and second stages of the rocket use liquid fuel and the third stage uses solid fuel. The first stage is equipped with nine supplementary - rockets. It costs approxima~ely 'i`-10.1 - billion to manufacture one N�II rock- et. Th~ N�II is scheduled to launch - - eight satellites by 1985, including the stationary weather satellite No. 2 - (GMS-2) which is to be launched in the summer of 1981 and the station- _ ary communications satellite No. 2 - (CS-2b) to be launched in 1983. _ COPYRIGHT: 1981 The Nihon Kogyo Shimbun CSO : 4120 ~ 22 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY SCIENCE AND T~CHNOLOGY HITACHI PROJECTS TOTAZ FACTORY OPERATION BY COMPUTERIZED ROBOTS ' Tokyo BUSII~ESS JAPAN iii English Vol 26, No 4 Apr 81 pp 26-27 ~Text~ - Hitachi Ltd. has launched a project anal~�sis of work at various tactories of to develup a robot to replace com- the company, assembly work takes up _ pleteiy assembly-tine workers. Its en- the largest amount of time, accounting _ tire technical staff is involved in the for 35% of the standard working hour~ effort. This includes the company's 5 of all Hitachi employees, followed by laboratories and 17 factories with the mechanical work 15% and testing Production Technolugy Department work 10%. Othe: work a~counted for serving as the nucleus. According to ihe rema::;:r~g 40�l0. The company the program, the company will intro- plans to reduce the number of its duce industrial robots io 60% of its assembly-line workers by 70% of the mechanical assembly process five years present number by introducing robots, hence, and eventually realize factories and at the same time, to improve with unmanned workshops. In this productivity by 70~Io. Predictably, the - project Hitachi aims at completing an introduction of robots Hill be accom- = intelligent robot which has built�in panied by such labor management m?~ro-comp~ters as its brain. has problems as personnel reassignment, senses of sight and touch, and moves, but the company intends to cope with _ keeping pa~~e with the flow of an the problems through re-education and - assem~Iy line. The company plans to transfers for its assemblyline workers. cucn.*,~ercialize the robots after it has As the company expects a particularly installed therr~ in its uwn factories. serious shortage of technical staff deal- _ Tnis "assembly-line rationali2ation ing with software, it will follow a _ project" will involve some 500 tech- policy of training blue-collar workers nical staff inembers. There was a to fill the vacancies in this field. similar effort some years ago when a According to the plan, five years from ~ projeci team of 150 staff inembers was now, the company will hzve some - organized to produce video tape re- factories where blue-collar workers _ co~ders at the Tokai factory in Katsuta will completely disappear from as- City, Ibaraki Prefecture. The new pro- sembly lines, w{uch will be managed jact is on a far larger scale. and operated by white-collar workers. _ Hitach~ has undertaken this projeci The new develo~ment project en- - of develuping an assembly robot be- compasses (1) standazdization of as- ca~ : it has judged that mar:power sembly robots, (2) development of saring througli 2he automation of as- tools which ~uill serve as limbs for the semb:y work, which constitutes a robots, (3) improvement ut software major part of the manufacturing pro- and (4) develonment of sensors which cess, will be a decisive factor in im- will serve a~ sensory organs for the proving the company's labor praduc- robots. In tt?e field c~f software, the tivity in the 1980s. According to an System Development Laboratory and ~ 23 : FOR OFFICIAL USE ~NLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 ~ ~ ~OR 9eF1C1AL USE ONLY the Production 'I'echnology Labora- tory of the company will lead the efforts to develop a robot language. As , regards development of sensors, Hitachi Laboratory will take charge of che sense of sight, the Central Labor- atory the sense of touch, and the - Mobara factory in Chiba Prefecture and the Sawa and Naka factories in Ibaraki Prefecture will join in develop- " ment efforts. A special feature of this _ project is the practical application of - an assembly robot with attachments - for walking, a new concept, with the aim of diminishing the amount of space it requires in a factory. At Hitachi Ltd. 150 industrial robots are currently in use, doing handlin~ and welding work. Five years hence, the number of robots will be increased to about 600, most of them on assembly lines. ]f everything goes well, unman- ned assembly line~ will appear in some of Hitachi's factories as early as in the latter half of 1982. Japan is said to be an "advanced country" for robot development, and _ Hitachi is one uf the representative rubut manufacturers. At its Narashino factory in Chiba Prefecture it produces some 3Q industrial robots a month. It - also plans to commercialize the new . � robots and put them on the market when they are fully developed. COPYRIGHT: 1981 The Nihon Kogyo Shimbun - CSO: 4120 _ 24 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FaR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY - ~ HITACHI CHA,LLENGES IBM WITH HIQi-SPEED GIANr COMPUTER To!cyo BUSINESS JAPAN in English Vol 26, No 4 Apr 81 pp 27-28 _ ~Text~ Hitachi, has recently placed on with such tremendous performance ~he mazket a super giant computer, the new giant computer can well com- - HITAC�M-280H, and a medium-sized pete with fast computers made by IBM . computer, HITAC-240H, the former and other manufacturers for several - being che world's fastest in computa- years to come in total systems and tion. 14-280 has been developed by TSS response. Hitachi to rival the IBIN-3081 that As a result, in Gibson M~S, it [BM introduced last November. This is boasts 17 MIPS, 10% faster than - the first attempt by any Japanese IBM-3081 and the world's fastest in computer manufacturer to compete computation. This is also 20% faster � with IBM in the field of super giant than Nippon Eiectric Co.'s ACOS computers. Hitachi's new giant com- System 1000. In the rase of the puter has adopted in its logic circuits compact HITAC N-240H, its computa- - highly advan~ed hardware such as i,S[s tion speed is 1~ MIPS. and photo channel adaptors with the It has adopted photo channel world's fastest integrations and speeds. adaptors in order to utilize photo fiber Hitachi has also prepared wide-ranging in its hardware. As a result, CPU's unbundling and ?5 program products (central processing units) can be con- - as software in direct confrontation nected with a cable with a maximum with [BM's products. length of 3,000 meters and a CPU and Tliis new computer has adopted as an input�output unit with a cable its logic circuits ECL-LSIs with 1,500 1,000 meters long. gates {circuit delay of 0.8 nano~ The fact that the new giant com- seconds)~chip and 550 gates (arcuit puter is equipped with so many pro- delay of 0.45 nano-seconds)/chip, the gram products is attracting wide atten- fastest integrations and speeds in the tion. Hitachi has prepared such varied world. Especially the circuit delay of software in order to compete with 0.45 nanu-seconds ~n the case of the IBM not only in the performance and latter LSI with 550 gates/chip is SO~Io price of hardware but also in soft~~are to twice as fast as conventional prod- so as to definitely emerge as the ucts. winner in the giant-computec competi- Its control memory and buffer tion. Hitachi has prepared 25 program - memory, each with a speed of 1 K bits, products including dispersed manage- are oi bipolar type with an access time ment programs, DISM/H, and host uf 7~iano-seconds. The speeds of its command control programs, HCCF/H. ma~n memory are 54K bits (with an The prices of the new computers access time of 150 nano-seconds) and start from ~�40 million per month for 16K bits (with an access time of 100 M-280H and '~10 million per month nano-seconds). for M-240H. Deliveries will start from The maximum ~apacity of its main the latter half of this year, rougiily the memory is 32 bytes while the maxi- same period as that of the IBM-3081. ` mum number of connected channels is Hitachi expects that within four 32. Its total throughput is as fast as years it can sell 120 M-?80Hs and 500 90M b;~tes~sec. Hitachi believes that M-240Hs. COPYRIGHT: 1981 The Nihon Kogyo Shimbun - CSO: 4120 - 25 FOR OF~ICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY ' SCIENCE AND TECHNOLOGY IC, MA.CHINE TOOL INDUSTRY CONTINUES TO EXPAND Tokyo BUSINESS JAPAN in English Vol 26, No 4 Apr 81 pp 33-34 [Text~ BADLY affected by the recession Matsushita Elactric I~~dustrial Co., the . following the second oil crisis in industry's output is expected to 1979, most of Japan's industries are further increase by 50% to 6.5 million suffering from dua business. But there units this year. The prices of popular- are exceptions and some industries are type VTRs have now been reduced to enjoying unprecedentedly good sales less than ~1:i0,000, a factor that has and favorable business results. They sharply increased both domestic sales include those producing video tape and exports. ~ recorders (VTRs), integrated circuits diff~usionV oR VTRsr ~s only hat the - (ICs), machine tools, cameras, _ watches, and several others. Along threshold, and that great expectations _ with the pcogress in electronics, these are being placed o.: expanding sales in industries have continued to show the future. The domestic diffusion rate remarkable progress in output and at the present time is only some 7%, a - sales. Exports are also steadily increas- figure that is expected to surpass 10% ing. At the same time, it is obvious this summer. According to Tokyo that they are exerting utmost efforts St?ibaura Electric Co. (Toshiba), all to develop highly advanced tech- VTR makers are optimistic over the nologies and to increase sales. future growth of sales which are ex- pected to show explosive growth. VTRs Other VTR makers include only There has been a sudden increase in Philips of the Netherlands and demand from general consumers for Grundich of West Germany. The video tape recorders which now rival superiority of Japanese VTRs seems to color TVs as che most popular choice be secuce. All Japanese makers are when purchasing visuallaudio equip� increasing their outputs. Toshiba, ment. The industry's total uutput of above all, intends to triple its VTR VTRs last year increased by 80�Ia over production within this year. the previous year to ~730 billion However, there are some difficulties including sales of video cameras and facing the optimistic Japanese VTR tapes. On the contrary, the output of manufacturers. Austria, for instance, _ - colur TV sets showed an increase of has recently taken action to restrict only 1 l~o to ~710 billion. the import of Japanese-made VTRs, - The number of units produced which might lead to a widespread reached 4,430,000, roughly double trade boycott. Another problem is that of the previous year. According to that an excise tax of 5% will be 26 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY imposed un VTRs f'rom this October. output of 1(;s increased by 49% in The tax will be raised to 10% from value last year over the previous year, next October and further to 15% in expocts showed an increase of 69%. In October 1983, addition, demand for ICs for general If trade friction becomes wide- use is very strong as symbolized by spread in EC countries, Japan's VTR VTRs which take almost the entire exports will be seriously affected. output of transistors produced by one When the excise tax is imposed, the leading manufacturer. One of the mar- _ makers say, they will have to increase keting managers says, "Japan's IC and the prices of their products, perhaps semiconductor industry is far superior from next year. to its U.S, counterpart as its exports are still rapidly increasing because of ICs and Semiconductors the high quality of products. In addi- The output of ICs and semiconduc- tion domestic demand is still strong tors increased by 35% in value last for use in general-purpose equipment: year, but according to production esti- But the dark side of the IC industry mates for this years, the output is represented by 16 kilo memory gcowth rate is expected to slow down elements for computers and ICs for to approximately 23% or so this year. use in automoblles. As the manufac- _ All the manufacturers, however, agree turers produced an excessive number that their output last year showed an ~f inemvry elements, last summer's excessive growth and ~'eel that a 20% inventories reached a level cor- growth is more realistic. Plant and responding to a five-month demand. _ equipment investments in fiscal 1981 The appropriate level is considered to are expected to surpass those in the be one to one and a half month's previous fiscal year. The industry's consumption. Prices tumbled and the total production of ICs and semi- unit price is now around $2, less than conduct~ors is expected to exceed the half the original retail price. But at ~1-trillion level for the first time in least one manufacturer is still history this year. confident. `"Theprices will regain their T'he main factor that is supporting original level by this summer," he says. this tremendous growth is the export The competition among manufac- of ICs which assucraes roughly two- turers is becoming more and more - thirds of the total output. While the intensified. "Of the leading 20 manu- Output of ICs and Semiconductors Output and Export of VTRs in Value and IC ~xport Growth Rate Output and Export of Machine Tools in Value Q Output of ICs in Value (In thousands) (~1 billion)~ Tota! output in value 1.OOU (~l billion) Growth Rate 700 NC machine tools ~ Output in Number I for 1C Exports ~'a 1,OOOr 600 Total exports in v~lue Exports in Number \ 100 Exports of NC machine 5,000 r ~ ~00 tools in value - ~ ~ I ~ ~ aoo I C 3.U00~- 500 ~50 300 I ; 200 r ~ t,oool ; . ~ ~ too ~ ~ , ~ . ~ ~ ~ 1977 1978 1979 1980 1981 1977197B1979I9A0 1981 ~976 1977 1978 1979 1980 (estimate) (estimate) 27 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY facturers throughout the world, only 1973. Accordingly, the industry has - five will be able to survive the harsh been enjoying a high level of sales for competition," says the manager of a more than 10 years. In value, the leading manufacturing company. industry's output incressed by 17.4�'0 in 1978, 9.3% in 1979 and 13% in Machine Tools 1980. Against the baclcground of active Though some people in the indus- plant and equipment investme'nts for try are cautious in their outlook - labor saving in industries centered "Our exports are expected to drop around the auto industry and favor� considerably in growth rate from last - able exports destined for the U.S. and year's 22% because of the uncertain Europe, the machine tool industry is business activities in the U.S. and the enjoying expanding sales. The indus- h;g}11y appreciated yen quotation," try's total uutput in 1976 was they say - many others ins~st, "Both . ~ ~�228,600 miliion including sales of our domestic sales a?.d exports ~vill the 68 member companies of the increase by well over 20p1o this year - Japan Machine Tool Industry Associa- with the output expected to exceed tion. Last year, however, the output the ~500-billion le~vel. reached ~683 billion, roughly tripling Concerning the reasons for this in only five years. Exports also in- success, industry sources explain, "We creased from ~�76,100 milli~n in 1976 have developed new functions one to ~269,600 million, or 3.5 times. after another such as automatic opera- Especially favorable are sales of tion, tt;.e wider use of electronics, numerically-controlled (NC) lathes built�in flash units, automatic focusing supported by electronic technology and others. We have thus been creating and machining centers with built-in new demands and exerting efforts to automatic tool changers (ATCs). These decrease costs, successfully widenir.g machining centecs can be used for the range of demand:' vazied purposes such as drilling, thread As for camera exports that assi~me . cutting, grinding and milling. more than 60% of the industry's ~otal _ The ratio of NC machine tools output, the president of one of the against the total output of machine manufacturing companies says, "Our tools was only 22% in 1976, but it world market share reaches 100% in _ reached more than 50�!0 last year. single lens retlex cameras and as high Japan's machine tool industry has as 75% in middle-priced cameras. Yet been successtul in taking the lead in we have not had trade friction prob- thP V,'~iiu~; iiid~il4~i. l1dUS~Ty hV S~Cl~~- ~~;T1S." Tye camera LIIdUSi~'' 15 8X- fully adopting etectronic techriology. pected to enjoy higlily favorable saies However, the EC Commission has re- throughout the world for many years _ - cently decided to monitor Japan's to come. . exports uf machine tools along with ' Japanese�made autos and color TV Watches sets. Retlecting these unfavorable fac� pomestic sales of watches, which - tors - and they have become pheno- have generally increased by 12% or so menal recently - Japan's machine tool a year, showed an increase of only 6% industry has bec~me prudent in invest- last year because of sluggish personal ing in plants and equipment. No spending. 'The industry expects that optimistic outlook can be anticipated sales will recover in the latter half of ' by the industry. this year along with the recovery of personal consumpaon. Cameras What makes the outlook of the Leading camera ?nanufacturers un� industry bright, however, is hig}ily animously agree that the camera indus- favorable exports. While no precise try suffered most seriously from the statistics are ava~lable yet concerning depression in 1965 immediately after the number of units produced last the Olympic Games in Tokyo, but this year, the industry's output appears to was their only setback. The industry have increased by 43~10 over the previ- was quick to recover from the depres- ous year to around 86 million units. sion following the first oil crisis in Exports accounted for the steep in- crease. 28 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY Thuugh it is expected that conven- tional mechanical watches are fated to gradually disappear because of the appearance of quartz watches, these old�type watches showed explosive sales in the Middle %.nd Near East and ~ Central and South America last year, and favorable saler; are continuing. The industry's output of such watches in- creased by 30�I~ last year and the ~ industry has been forced to further increase production. A key to the future growth of the industry is in determining how to . - expand the world demand f~r watches that now stands at 330 million a year. COPYRIQiT: 1981 The Nihon Kogyon Sb.imbun � CSO: 4120 - 29 � FQR OFFICIA,L USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 F4R OFFICIAL U5E O1VLY SCIENCE AND TECHNOLOGY TELECOMMUNICATIONS HFAD DISCUSSES PROGRESS IN COMMUNICATIONS SYSTEM Tokyo BUSINESS JAPAN in English Vol 26, No 4 Apr 81 p 61 _ ~Article by Arinobu Morizumi, Director General of Telecomanunications, Ministry or Posts & Telecommunications~ ~Text~ T HE greatest problem relating to nations for the quality of its uniform Japan's telecommunications nationwide services as weU as its immediately after World War II was to technology. The number of telephone establish policies to rehabilitate and subscribers ~s expected to reach some expand the telecommunications facil� 38,660,000 soon, about 25 times that _ ities that had suffered a crushine blow at the Uime when NTT was established. during the war so as to restore tele� In the field of international tele- communications services to the peo- communications, KDD has exerted ple. In order to achieve this goal, the great effocts in installin8 wide-band government introduced legislation con- communicarion trunk lines such as cerning telecommunications in the submarine cables and international fust half of the 1950s and established satellite communications. Along with the basis for the current monopolistic the diffusion and expansion of domes- setup for supplying public telecommu- tic communication networks in many . - nications services. These consist of countries, KDD has formed a global Kokusai Denshin Denwa Co., Ltd. network of communications, thus en- (KDD) and Nippon Telegraph and larging Japan's vital role in the inter- Telephone Public Corp. (NTT); p?s for national society. domestic public telecommurucations The diffusion and expansion of services, NTT has, since fiscal 1953, telephone services have thus reached a been exerting efforts to complete its very high level, both domestically and facilities to fill the backlog of orders internationally. In accordance with the for installing telephone sets and to improvement in the people's living, computerize all telephones ttuoughout and the diversification and enhance- the country. Plans to expand telegraph nient of society, new telephone equip- and telephone services have been ment has been developed and commu- undertaken six times. Along with the nication services with moving vehicles marked growth of the natian's eco- - automobiles, trains, ships a.nd air- nomy and the raising of the standard craft - are being steadily e�panded. of living, demand for telephones in� Along with the rapid progress of creased at an unexpectedly rapid pace. electronics and new demands from NTT achieved its main targets through business, industry and the general pub- its managerial efforts and technical lic, more advanced and diversified - renovations in the first half of the communication means such as data ~ communication and picture commu- ~ 1970s. As a result, Japan s telecommu- nication are becoming widespread. nications are recognized by many 30 FOR OFFIC[AL USE ONLY . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 i FOR OFFICIAL USE ONLY Data communication, which uni- nications systems were revised, fac- formly transmits and processes data simile communicati~n has shown rapid by connecting computers with com- diffusion, supported by the fact that munication circuits, was launched in the performance of facsimile has im- fiscal 1964 in Japan. Since fiscal 1971 proved and costs have been reduced. when restrictions placed on the use of The number of facsimile units now telecommunications circuits were being used in Japan totals more than lifted, data communication has rapidly 100,000, the second largest number become widespread. During fiscal after the U.S. 1979, NTT counted for data commu- The development of telecommuni- nication 4,568 systems including man- cations heavily depends on technical - agement of inventories for sales, scien- progress. Constant efforts to promote tific and technical computations, in� research and develogment are needed. formation on the distribution of per- It is also necessary to establish highly ishable foods and medical information. reliable and economical telecommuru- These serviices are now playing a vital cations networks on a nationwide role for the nation's industrial and scale. Specialized equipment is a basic economic activities. requirement. Negotiations between the In order to cope with such rapidly United States and Japan concerning inereasing ~iversified and improved NTT's equipment procurement based utilization of telecommunications, the on GATT (General Agreement on existing communication networks cen- Tariffs and Trade) ragulations on _ tered azound telephone networks aze government procurem~nt, as agreed to rarely sufficient. New digital commu� at the Tokyo Round (multiple trade nication networks that can fit new negotiations) for the purpose of ex- technologies represented by very large panding trade, were concluded at the scale integration and computers will be end of last year. As a result, NTT needed. For this purpose, NTT has adopted ths so-called three-level sys- begun to offer network services de- tem including competitive bidding and signed for new types of data communi- two stages of ~oint development. The cation, Knovm as DDX, a circuit ex� new system took effect on January 1, . change service wa, introduced in 1981. December 1979 and packet exchange ~ Development of the most advanced service in July 1980. In addition, KDD technologies through intemational has started in 1980 an international competition and joint research and computer accsss service (ICAS) wt~ich development among advanced indus- maintains direct connection with a trial countries will assure the further data base in the U.S., allowing retrieval progress Af pioneering technologies. of vacious information on line. Data To promote this goal, NTT is respon- communication between both coun- sible for encouraging competitive tries is thus actively being promoted. biddings, both internationally and Along wi4h data communication, domestically, concerning the prc,cure- facsimile communication is also rapid� ment of required equipmen,t and ly growing. This method of communi� materials. On the basis of the newly cation is most suitable for Japan as concluded agreement, NTT is exerting complex Chinese characters are used in efforts to implement the new proce- writing. Sinca 1971 when telecommu- durs for procuring equipment and materials. 0 COPYRIGHT: 1981 T'he Nihon Kogyo Shimbun. CSO: 4120 31 ~ FOR OFFICIAL USE ONLY r APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFEICIAL US~ ON~LY ~ SCIENCE AND TECHNOLOGY NTT'S COMMUPTiCATIONS TECHI30LOGY F'OR INFORMATION-ORIENTED SOCIETY DESCRIBED Tokyo BUSINESS .JAPAN in English Vol 26, Nu 4 Apr ~1 pp 65-74 ~Article by Masaya Yamauchi, Ma.naging Director and Chief Engineer, Nippon Telegraph & Telephone Public Corporation~ C Text ] T ODAY telecommunications net- that telephone service will cont~nue to 1L works in Japan have sprsad to be the main part of NTT's business, cover overy part of the nation, becom- and that we have already become able ~ ing indispensab~e for business, industry to fully meet the quantitative demand ar?d che people in general. 'fhe role for telephone service. In the future, played by telecommunications as the NTT wi1.1 promote the development of central nerve center of our econamic new, easy-to-use, low-cost telephone and social activities has become in- services, while at the same time im- creasily important. At the end of fiscal proving the style concept and con- ~ 1979, the total number of telephones venience of the equipment. in use in Japan reached 53,630,000, Secondly, N'i'T also must strive for which made Japan second in the world expansion of various services other following only the United States, than the telephone service. To accom- while the number of telephones per plish this, formation of a new com- 100 people was 46.0, which ranked munications network will become Japan in seventh spot. necessary. In addition to this, we must On the other hand, the devel- strive for further expansion of digital opment of electronics such as LSI has data exchange systems such as circuit accelerated creation of new tele- switching and packet switching sys- communications media, and is making tems, construction of a public facsi- required telecommunications services mile communication network, and the more sophisticated and diversified. development of visual information ser- Under such circumstances, the role vices represented by ~APTAINS to be played by Nippon Telegraph & (~~acter and Pattern Telephone Telephons Public Corporation (NTT), Access Information System) and VRS Japan's principal provider of tele- (Video Response System). communication services, is considered Thirdly, although our tele- to be of vital importance as a kn~ow- communica~ions technology has al- ledge�intensive ind~lstry. As such, it ready attained the highest level in the has a great responsibility for pro- world, we must continue our ef- moting techonological research and foru, laying emphasis on the devel- development. opment of both basic and new tech- _ For that reason, we of vTT must, nologies such as LSI, digital and op- = fust of all, strive for qualitative im� tical fiber communication technology. provement in our telephone service so pi~talization of a network is very ; as to meet the needs of our technically effective in terms of economy, re- advanced society, taking into account liability and fle~tibility. NTT plans to - 32 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 ~ FOR OFFICI~.L USE~ ONLY - digitalize indivldual networks such as CoUect call service was inaugurated the digital data network, public facsi� ~ August 1980. ~ mile communication network and Data telephones equipped with an others whose digitalization is urgently ~strument to display the telephone required, while at the same time di- number called on pushphones (push- ~talization of the telephone network button telephonP sets) and provided also is to be promoted. As a future ~th a store-and-forwacd function of plan, the individual networks will be the telephone number called can be - integrated, and further efforts will be u~d ~~~put~output device for made to construct an integrated- ~ta communication as well by con- = services digital network (ISDN) aiming necting it to a data processing center at a telecommunications network that for processing. such transactions as enables economic and efficient pro- credit card verification, sales manage- ~ision of convenient, easy-to-use and ment, reservarion and credit advice. _ diverse telecommunications services. Sa1es of this data teleph~ne began in Improvement of Telephone Service December 1980 in Tokyo, Osaka and Nagoya. In addition, the development of the As to the telephone service, the EK-50 type key telephone system is basic service that enables us in general being promoted to realize improve- to talk with anyone no matter how ment in service functions and mini- distant the place on a real-time basis aturization of paired cables thrnugh has already been realized. However, introduction of microprocessors in an this situation is still far from the ideal area where the number of extension telephone service where any person telephones exceeds 20. can communicate with any other per� son anytime and anywhere. For Data Communications Services - example, even though telephone con� Data communicati~ns have made versacions can be made from vehicles steady progress. With the recent devel- such as automobiles, trains and ships, opment of communications and com- or with the hard of hearing, these puter technology, the variety of mate- services are utilized only to a limited ri~ processed by data communica- extent. It cannot be claimed, there- tions has become wider and the equip- fore, that the demands of the nation ment more sophisticated. The number are fully being met. of domestic data communications Automobile radio telephone service systems at the end of fiscal 1979 was firs! provided in December 1979 reached 4,668, while at the same time - in 23 Wards of Tokyo as a mobile domesdc data communications circuits communication service. At present, ~ u~ totaled 107,086, the service is provided in the Tokyo Since the telephone network has its - and Osaka areas. The service area will >i~itations in transmitting digital sig- be gradually expanded to meet future nais, NTT has promoted the. develop- demands. ment of a digital data exchange net- Ft~rthermcre. NTT began selling in work to overcome this problem. A - January 1980 the "Siiver Phone circuit switching service was inaugu- Hibiki,' a bone conduction telephone, rated in December 1979 and packet - for those with serious hearing prob- switching service in July 1980 as lems who were not aided by "Silver advanced data communication services Phone Meiryo," an earlier model for for digital transmission and switching. the hard of hearing. In the circuit switching service, a Cordless telephone sets equipped circuit is set up for each communica- with a radio circuit (using frequencies tion, as in the case of the telephone of ?50 MHz band and 400 MHz band) network, and communication is made replacing the cord on regular sub- between two terminals at the same rate scriber telephone set can be carried of speed. The multiplex time-division anywhere for convenient use. Cordless signals are transmitted over a digital telephone sets were introduced into transmission route. Since digital signals service in May 1980 in four cities, are switched without conversion, high Tokyo, Yokohama, Nagoya and reliability can be secured. In case of Osaka. the packet switching service, data is 33 FOR OeFICIAL USE ONLY � APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY not directly transmitted and received Ministry of Posts and Telecommunica- between the sender and receiver, but is tions and NTT. _ first divided into singlP packets of 356 Furthermore, NTT began experi- octets (1 octet = 8 bits). After they ments on VRS in January 1979 in the are once stored in the switc;hing equip� center of Tokyo, for the time being on ment as packets with address informa- ~ lnhouse VRS system serving some tion, they are transi'erred through the 100 terminals as the test subjects. - switched network and sent to the This system, differing from CAP- addressee. Each time a packet is trans- TAINS based on character and pattern ferred, error control is conducted, information, is capable of handling resulting in very high transmission instantaneously color pictures, infor- quality. Furthermore, the packet mation in motion and sounds, in addi- switching system allows communica- tion to character and pattem infor- - tion between terminais with different mation. At present, experiments are - rates of speed, and thereby permits being conducted by adding a new t7exible system :.onfiguration. digital-rype information file and expanding the functions of the system. Visual Communication Services Finally, the video conference sys- Visual communication services now tem, which can connect two con- under development are facsimile, CAP- ference rooms located at a distance TA[NS, VRS and video conference from each other by video and audio, services. enables its users to see the conferees in - Facsimile service nas rapidly come another conference room on a TV into wide use in Japan where com- screen, and to participate in a video plicated kar~ji characters form the basis conference as if they were in the same of writing since transmission of the room. NTT has been conducting since _ kanji is possible and because no full- 1976 a monitor test on the video time operator is needed for this se~"vice conference service offered for public _ as is required for telex service, this use between Tokyo and Osaka. system has become widely used. At Furthermore, hTT has developed a present, Japan ranks second in the low�cost video conference system world - the United States is first - in which can be installed in a user's facsimile�transmitting equipment in building or on his premise. This sys- use with a number that now exceeds tem has been undergoing tests since 100,000. From the viewpoint of March 1978 between Tokyo and popularization of facsimile, NTT has Osaka with satisfactory results. promoted the development ot' a sub- scriber tacsimite communication sys- Basic Technologies to Support Services tem, incorporating easy-to�use, inex- We are promoting the developr~lent pensive and compact facsimile equip� of various basic technologies in order ment with a network having diverse to support the previously mentioned service functions suitable for facsimile ~ervices, ta add sophisticated functions communications such as multiple ad� and to meet the ever-increasing needs dress communicatian and automatic for new services. reception. This system is expected to (,gI Technology: ISI is expected to be put into service very soon. contribute not only to computers but The development of an intera^'ive also to other telecoc:~munications visual information system is now� in equipment such as switching equip� ~ prugress in technically advanced coun- ment, transmission equipment and ter- cries. This system enables a user to m~~ equipment as very important obtain whatever information he wants elements to support the future tele- t'rom the large volume of information communications systems. LSI made of stored whenever and however much he a large number of interconnected fine wants as visual information through elements has shown rapid improve- - his access to visual inform3tion centers ment. The num~~r of elements we can from his terminal combining a regular put on a chip has been doubled each TV set with a pushbutton telephone year, thanks to the improvement in set, In Japan, the system called CAP- fine element processing techniques - TAINS has been under joint experi- such as the electron beam exposure ments since December 1979 by the technique. At present, a 64 KbitJchip 31~ _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE OMLY RANf Irandom access memory) con- tronic components such as LSIs, dif- _ tatning tens uf thousands of inemory feririg from the ones of the existing elements on a silicon chip of several switching equipmen~, and converts the mm. square is being introduced into pu~ of digital signals passed information processing equipment in through a transmi~ian route, changing the DIPS 11/5 series. Furchermore, we the positional relationship in terms of , have developed a?56 Kbit/chip MOS time and space for every message unit. memory, the highest integration in the plgitalization of switching equipment world, which contains some 580,000 undertaken starting with inter- elements on a siL�con chip some 6 mm. office switching equipment and fol- square, and successfully confirmed its lowed by local switching equipment. performance. Software Techonology: With the Digital Technology: The rapid devel- progress of electronization of equip- opment uf LSI technology in recent ment due to the advance of electronic years has brought about drastic technclogy, software is expected to chanees in circuit systems, mounting, become the nucleus of all technol- equipment constitution and software ogies, while at the same time che tEChnologies, and has had a great volume of softwaze and its importance - impact on transmission and switching are increasing rapidly. Since an systems. Furthermore, it was ISI tech- enormous amount of expenditure is nology that made the digital system need~d for the development of soft- ~ possible, replacing the traditional ware, and its preparation is labor- analog system. The digital system intensive viewed from the internation� translates every signal into a combina- ai oint of view it is a challen e to P~ , B tion of "1" and "0" pulses, and a improve suftware programming pulse train is multiplexed on a time productivity. divisiun basis for transmission and To meet this challenge, and to swiiching. promote reduction in software devel- NTT is vigorously promoting the opment costs, productivity improve- development and introduction of digi- ment such as curtailment of the devel- tal transmission and switching systems. opment period, quality improvement Digital transmission systems which such as reliability, flexibility and have already been introduced into capability, and improvement in main� commercial use are the DC-1001~i tenance, we are striving to adopt soft- System (1,440 voice channels/system) v~rare development techniques, and to applicable to medium and short dis- develop equipment to automatically tance routes over coaxial cable, the produce software products and high _ DC-400M System (~,760 voice leve! language capability to facilitate _ channels/system) having the la;gest programming and maintenance. transmission capacity in the world as a ppdcaJ F'ber Communieations = digital transmission system and appli- Technology: The optical fiber com- cable to long distance routes, and the munications system uses optical fibers _ 30 GHz Band Radio PCM System ~ its transmission line, and transmits - (20L�PI System having a capacity of information over lightwaves. We have 5,760 voice channels/system) appli- developed completely OH free VAD cable to long distance transmission opucal fiber system of less than 0.5 routes up to ',500 kilometers. Further- db/km with longer wavelengths rang- more, for a digital radio transmission , system, we are promoting the develop- ~ng from l...�m to 1.7�m by re~ning ment of 5 GHz Band Digital Radio the optical tiber manufacturing System (transmission capacity of 200 method (VAD method) which was Mbls/sysj through the improvement of developed by the joint efforts of - [baraki Electrical Communication utilization efficiency of frequencies ~boratory and three electric wire by using the i6QAM modulation system, thanks to the development of manufacturers in 1976, and by adopt- ing a high-degree purification method multilevel modulation and demodula- by W}~ch impurities in the fiber can be tion technology. reduced to less than one ppb (one As to digital switching systems, we billionth). This has removed some rest- are promoting the development of r~ctions on optical fiber communica- digital switching equipment which forms message channels with elec- tions, made a wavelength division multiplexing system possible, and FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 I FOR OFFICIAL USE ONLY taken a great step toward the develop- t~ie telex network and the~ telegraph - ment of lightwave communications. switching network. In recent years, The first field trial of a lightwave however, computers have come to be _ communications system was con- used a?idely in every field of our social ducted in 1978, centering on a 48-core and economic activtties. As a result, _ multi�mode optical fiber cable over a the volume of digital information has _ distance of approximately 20 kilo- increased, while at the same time meters betwee:~ the Karagasaki Con- semi-conductor components technol- trolling Radio Relay Station and the ogy such as LSI or digital signal Hamacho Telephone Office in Tokyo. processing tech.nology has shown Subsequently, the second field trial remarkable progress. It has become was carried out over an ld kilometer practical to transmit in a digital form distance in Kawasaki in 1980 with not only data signals but video signals satisfactory results. Commercial test- such as facsimile which is analog infor- _ ing is scheduled to start this year. mation in itself and even telephone Sateilite Communications Technol- signals. Consequently, it is now pos- ogy: Satellite communications has the sibie to establish an integrated services capability of transmitting high-quality di~tal network (ISDN) aiming at a information to any place on earth, telecommunications network capable ~ irrespective of geographical features, of groviding convenient, easy-to-use providing signals over a wide area, as and diverse telecommunications serv- compared with the existing communi- ices eccaomically and efficiently cations lines. [n December 1977, thr~ugh integration of individual digi- "Sakura," a medium-capacity geosta� tal networks at the final stage. Prior to tior.ary communications satellite for that, individual d~gital networks suit� experimental use, was launched from able for data communications and _ Japan to undertake various experi- Structede and~~e 1 teleph nes netwo k ments. NTT is now developing demand- also must be digitalized. N.T.I. is assigned time divisiun multiple access For the above reasons, equipment capable of improving the steadily promoting digitalization of utilization efficiency of commumca- individual networks such as the digital tions satellite channels by severalfold, data network and the public facsimile and s lightweight (some '.2 tons) COe3mnn~antin e ated sr stemming at _ 301~'0 GHz band small earth station g g~ y that can be installed un a rooftop, Conclusion - aiming at the develapment of the For NTT, whose business has communicatians satellite II (CS-') entered int~ a more creative arxa along which is scheduled to be launched in with the ro ress of the so-called 1982. Fur the time being, CS-2 will be ~formation society, there can be no used for pubiic communications cir- obvious indicators of future develop- cuits with the purposes of providing ments as we could count on before, reliabte communications at times of and it seems that the smooth iech- emergencies, setting up communica- nolo ical develo ments as we have tions lines with isolated islands and ro gessivel actueved in the ast can remote areas, and setting up additional p g y p circuits at ordinary times. no longer be expected in the future. However, we accept this as a chalienge. Establishment of an Integrated Digital It is our intention to make i:ather Network efforts to meet the expectat'sons of Tetecommunication services have the nation through our vigorous research and development activities so been proMded so far by separate and as to provide new and improved independent networks such as the tele- services economically and etficiently phone network for telephone service, by merging new ideas with new tech- ncilo�ies. 0 3~ - F~OR OFFIC[AL USE LY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFiCIAL USE ONLY Conceptual Diagram of a Future Telecommunications Network rr~n~u rraruit ~ Cummumntwn Communkubn ~ Procaung ~t Cenler ~On~K Inrwmuwnl Infmma~wn hoca~~n/ Pranun~ C ~3 ~n x - ~n^' "aF~ 3~ '+~t ~ n-3 R 3 _ . - ' , ~ ~ a = _ - , - _ . ~ l_._. . .:J Ilome irlrcommumc~uun Cence~ iHumc Trrmmalfl ~o~n; ~Trvnb ~Opucal Fiber.l'ouul Cable. Mi.rowave ~nd Salellitel Subunber Lme ~Opucul I'iberl COPYRIGHT: 1981 The Nihon Kogyo Shimbun CSO: 4120 � , FOR Q~F[C'~AL US]E ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 - FOR OFFICIAL USE ONLY SCIENCE AND T~CHNOLOGY NEW HEAT PUMP SYSTEM TO ACNIEVE GREA.T ENERGY SAVINGS DESCRIBED Tokyo BUSINESS JAPAN in English Vol 26, Na 4 Apr 81 pp 91-94 [~rticle by Takehiko Shimura, Technical Official, Office for Promo ting the Moonlight Project, Agency of Industrial Science & Technology~ i TeXt ~ APAN'S energy consumption with coal, three large-scate pro~ects are - ~.mount~d to some 390 million kilo� being promoted, including the devel- liters ca;:ulated in terms of oil in fiscal opment of MHD (magneta 1975. If ~apan is to achieve sound hydrodynamic) power generation, and - - economic g;rowth, its energy consump- the development of new systems for tion in 1985 is expected to reach as storing power generated with cells. much as 740 million kiloliters in terms plong with chese projects, another of oil even though great effort is large-scale project to develop new ' exerted to save on energy consump- technologies to save energy consump- - tion. The nation's oil imports are non is under way. This research and estimated to total 510 million kilo� development is aimed at developing liters. It is evident that in case the new systems to utilize wasta heat. import of such a huge volume of oil Emphasis is p?aced in this project on becomes difficult, not only the alter- t~e effective recycling of restored native us~ of coal, natural gas, nuclear waste energy exhausted in the form of energy and trydraulic power but also heat in order to enhance the general - the development of such new energy effic,iency of primary energies utilized sources as solar energy, geothermal in machinery and facilities. energy, wind power and wave power In fiscal 1975, of the nation's total will be needed. Improvement in the energy consumption, the steel industry _ performance of machinery and equip� assumed 18.0�l0, the energy division ment in the consumption of such including the power industry 32.2%, - primary energies does not lead to the the transport industry 15.4%, the expanded effective use of primary agriculture, forestry and fishery divi� energies as compared to the develop- sion 2.5%, and the general public ment of pioneering technolo~es, but 23.5%, As seen above, the steel indus� a when compared to the efforts re- iry and all the mining and manufactur- quired, such improvements in machin- ing divisions including the energy divi- ery and equipment will generate effec� sion assumed the laxgest part of the na- tive results and can be achieved in a tion's energy consumption. Further- - comparatively short period af time. more, some 48% of energy consumed The effort should not be made light ~ these divisions is discharged as waste of. heat, regardless of actual utilization, In the Moanlight Project, in order into the atmosphere, rivers and the to improve il~e power generating ~a, In many cases, such waste heat ~ - efficiency and contribute to the pro- generates pollution in various forms. rriotion of thermai power generation Even though recovered, such waste 38 . FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 = FOR OFFICIAL USE ONL:' - heat is low�grade energy in most cases heat source. These studies have been - _ and has been recycled for cost reasons. entrusted to private research organiza- Convention~, difficulties in utilizing cioces. waste heat must be overcome by devel- uping new technologies to utilize it. Compression-Type Heat Pump System Based on this ~oncept, the researct~ As shown in Diagram 1, the and development of a new technical compression-type heat pump system is _ system to utilize waste heat was designesi to generate process hot water started in fiscal 1976 as a quasi�large- with a temperature from 100� to scale project for the purpose of devel- l60�C utilizing heat from low- oping technologies to recover and temperatute waste water. The system - utilize waste heat from factories envisions new�type vaporizing equip- including steel mil~ls. Along with the ment adopting the principle of flush initiation in fiscal 1978 of the Moon- ~Porization and des;gned to vaporize : light Project that is intended to a heat medium with a low boiling develop new technologies to cut point by means of the heat of warm energy consumption in general, the waste water (30 to 60�C): The vapor- - former project was included in the ~d heat media is compressed in the - program and more strenuous efforts screw compressor whose rotor is _ have been exerted to promote research sealed with a heat medium. The tem- - and develop~rent. This project is ~erature of the heat medium is raised _ expected to be concluded in tiscal through this process. The temperature 1981, we would like to introduce in is further raised through the high- this article a new heat pump system temperature generator, adopting the which has been developed to recover P~ciple of the absorption-type in _ studies conducted thus ~ar that high- heat from warm waste ~vater with a tem erature water from 100� to _ temperature from 30� to 60�C. 160gC. Designs of all elements of the Heat from warm waste water with a m~~e were started in fiscal 1977 temperature from 30� to 60�C is plen- and various technical roblems have tiful but of low grade, and has rarely p been utilized. But if such heat is used been studied by repeating trial manu- _ as a heat source for a heat pump to facture and operation of related - generate hot water or steam, it be- machines and equipment. Studies were - comes highly useful. Con rentional finished in the fust half of fiscal 1479. heat pumps, however, have been able Methods to control the system as to generate hot water with a temper- assembled as a heat pump have been ature of only 60�C or so. If it becomes studied. In fiscal 1980, a pilot plant possible to efficiendy generate hot combining all the components was ~ water with a temperature from 70� to manufactured. It has been confirmed 90�C or brine with a temperature ir? studies conducted thus far that - = lower than �10�C for making ice from 1uBh;temperature water from 100� to such low�grade heat, re~onal air- 160 C can be gained from watnt waste - conditioning can be materiaLzed water with a temperature of 60 C. The ~ almost without requiring additional pilot plant manufactured (450,000 energy from some other source. But, kcal/hr) is one-twentieth in size as - as mentioned above, conventional compared with an actual plant and its technolugies have been generally screw compressor is driven by a diesel unable to generate warm water with a engine. temperature of more than 50�C or Absorption�Type Heat Pump System - cold water colder than 0 C. [n this Three types of heat pumps are project, therefore, research and devel- included in the absorption-type heat - opment have been conducted to work pump system. The first one uses warm out a compression-type high temper- waste water as a heat source but needs ature heat pump system to generate a high temperature exterior heat processed hot water with a temper- source for driving the pump. The ature from 100� to 160~C utilizing second pump needs no energy to heat recovered from low�temperature drive itself but needs cooling water. waste water. Another one is ar~ The third one is an ice making cycling absorption-type heac pump system machine that is designed to ge!~~erate that is designed to generate refrigera- cold water for cooling and brine tion utilizing warm waste water as a for ice making from hot water and cold water generated by the second- 39 = EOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY 1 ~ rype absorpdor. heat pump. The devel� also, it has been found that brine of - opment of all these machines is being less than -12�C can be realized by = promoted. Another stage of this devel� using warm waste water of 60�C as a _ opment will be to Work out a plant for heat source. Now a pilot plant is b tesg heating and cooling through general remodeled to more thoroughly systema[ization uf these machines. the process. These pilot plants are one- Diagram 2 indicates the principle of thirtieth in size as compared with the heat pump. actual plants. ~ Basic expenments were started in If abundant low�temperature warm fiscal 1977 and trial manufacture of waste water can be recycled in the each part has been repeated. As for the throughf the aboveiemetk?ods l oil con- first�type absorption heat pump, - studies were completed in fiscal 1979 sumptio ared to conventi nal metho'ds ~ and this new rype heat pump is now as comp machines, commercially produced as an altema- using boilers, ice makin8 _ tive for ordinary boilers. Concerning etc. In addition, the average deprecia- the second�type heat pump, a pilot tion period of these heat pumps has - plant (120,000 kcal~hr) was con- been found to be one year or so. In structed in fiscal 1980 and is being ~~S respect also, efforts are being remodeled to improve its efficiency. made to put them to pcactical use O _ _ As for the ice making cycling machine the shortest possible time. Diagram 1 Utilization plant ~ ~ Screw compreuor _ High Hot water temperature (100 - 160�C) ' generator _ ~ = ~ ~ ~ ~ New type vaporizer i i ~xhaust heat source - ] i [ ] ~ + ~ i i i i i ,p ` - ~ A ~ Warm waste wat~~ u (30 - 60�C) ~ y ~ ~ - ~ / - _J 4~ FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY Diagram 2 _ High temperature generation Absorption and Gquid (Cold media condensation) condensadon 4 Reh~er ted nntm ll) 1 Externil hat ~ource I1) (C) or (Cooting watm 12) lC)1 ' ~ (Wvm wate w~acer (2)) Q Cold ~ Absorption Absorption liquid Air extraction } liquid (Dilution) , media i i Warm wu~e wuar f U 12) b W~ter bemg hated (1) l2) I or or IBrme, eec. lCl) . ICooIL~ watar /Cp . I CO~fI (1) Fint�tYP~ hea[ pump - mC a l21 S~cond�type hwt pumD I ~ . _ _ . J (C) Ice making cycla (First heat pump only) ~ Waste heat recovering Temperature raising ~ (Low temperature generation) (Heat absorption) i __J COPYRIGHT: 1981 The Nihon Kogyo Shimbun ~ CSO: 4120 1~7- - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY ~ SCIENCE AND TECHNOLOGY AIRCRAFT INDUSTRY DEVELOPMENT INCREASES Helicopter Industry Tokyo NII:KEI SANGYO SHIMBUN in Japanese 8 Jan 81 p 7 [Text] In the Japanese aircraft industry where there is always a lot of talk about both commercial and military planes, the policy of boosting the helicopter sector has surfuced as an issue. Although recently the helicopter industry is introducing new model pro~ects almost yearly, the three makers--Kawasaki Heavy Industries, Mitsubishi Heavy Industries, and Fuji Heavy Industries--sti11 lack strength to get out of the present license production based on imported technology and start ~ cultivating the market on their own. At last, the Kawasaki Heavy Industries is _ beginning to make it on its own through international joint development; however, it seems that before a"helicopter with the [Japanese national flag of] Rising Sun" - can "take off" on a full scale, there will be many problems in terms of both personnel and money. Production Would Be Fxpansion-Based Th.e Defense Agency plans to procure in large quantities the armed ground attack support helicopter, "AH1S," which will be used by the Ground Self Defense Force as of 1982. The AH1S, developed by America's Bell Helicopter, is equipped with missles (4 on each side) and 70 mm rockets on its slim 0.9 m-wide body; it is capable of attacking tank forces at low altitudes, skimming just above the ground level. The _ ~ Ground Self Defense Force has imported one in 1979 and another in 1980, an.d is testing them; they plan to have a total of about 50 craft ready for battle in the future. In case of quantity procurement, it is likely that a domestic manufacturer would produce them on license basis and that would most likely be Fuji Heavy Industries. For the past 2 years, Mitsubishi Heavy Industries has been producing ASW [antisubmarin-: warfare] helicopters, the "HSS2B." This model is an improved version of the "HSS2" developed by Sikorsky Corporation of the United States and produced by Mitsubishi - Heavy Industries on license; the improvemenC by Mitsubishi includes its ability to be carried on ships and better ASW equipment. According to the Defense Agency's mid- term operations estimate, which constitute its equipment budget plan, 51 craft will be purchased by fiscal 1984 and. it is expected that the HSS2B "is the model for which there will be the heaviest demand in the helicopter industry in the future" (according to an industry spokesman). - ~ 42 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY ~ Also, Kawaskai ~ieavy Industries has, since the "latter half of last year, begun mass-production of "BK117," a multi-purpose :'~elicopter which is a prc,duct of ~oint development with West Germany's MBB [Messerschmitt-Balkow-Blohm]. By the end of last year the two companies received orders totaling some 120 craft~ Kawasaki Heavy Industries is emphasizing this model as its new mainstay for future commercial . demands. Although these three companies are moving in three different directions~ gC a glance, it would appear that the Japanese helicopteX industry is steadily moving toward improved technology and increased production. Not Good Enough for the World Market The actual state of the industry, however, is so weak that "judging from the present situation, it will take more than 10 years before Japan's comprehensive forces of technology and sales can compete in the world market," (according to Kozo Hirata, - managing director, the Society of Japanese Aerospace Industry Association). "To - begin with we are decidedly too short of eingeers to take a leap in the future," (says Ken~i Ikeda, managing director, Mitsubishi Heavy Industries). Even Kawasaki Heavy Industries, which has the best record in terms of both the number of models produced and production volumes, says that, "Of the 600 technicians working on air- craft body, the helicopter personnel numbers only 150; therefore we cannot help but priortize research and development" (says Moto Yoshiwaka, director, Rotary Wing Aircraft Sales Dept., Aircraft Division). Each company is engaged in many long-term projects which require a great number of engineers. These include the new YX (YXX, the next term commercial aircraft), MTX (next term intermediate-level training jet), STOL (short take-off and landing) research craft, and CCV (reflex improvement aircraft). Consequently, even if a company wants to transfer engineers from the fixed wing division, it cannot do so because of shortage in engineers in that division. In addition, because "among the aircraft, the helicogter is most mechanically involved, there are that many more difficult techno- logies to consider, such as those involving vibration, automatic stabilizer, etc" (according to Atsushi Kasai, managing director and director of the Aircraft Division, Fuji Heavy Industries). This further aggravates the shortage of engineers. In terms of finance, too, it cannot be said that the industry is on a sound footing. At present, the total annual production of helicopters by the three companies is valued at 3 mere 28 billion yen (just 10 percent of the entire aircraft industry). It is said that the development of a new helicopter would cost at least 10 billion yen, and furthermore that "both in terms of technology and sales, the risks are high," (according to Toshiro Murai, director, Aircraft Dept., Mitsubishi Heavy Industries). A company cannot simply increase the amoi~nt of development investment. In this respect, Kawasaki Heavy Industries` development of BK117 is seen by the industry sources as a "valiant undertaking." C~nsequently, the present position of the respective manfacturers is that of "waiting for the development and production of military aircraft whose demand prospect is certain." From the mid-1950's to the mid-1960's the Defense Agency made plans for domestic development of a new helicopter called HX. The plans went as far as the ~ basic design stage, but eventually fell throiigh. According to the manufacturer involved in the development, the experience was bitter: "While tfie Maritime Self Defense rorce requested large models, the Ground Self Defense Force wanted smaller ~ craft. The differences were never adjusted, and the project was discontinued." 43 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOIt OFFICIAL USE ONLY A Time to Consider Promotion Measures - The aircraft industry has, in passenger aircraft and engirie divisions, improved its strength through accumulation of experience in sub-contract production for leading foreign manufacturers. However, in the helicopter division, it has been mostly the case in which "although several subcontract offers were made, they had to be turned down because what could be gained in terms of both profit and technology was minimal," (according to Mitsubishi Heavy Industries). The talk, also, of Fuji Heavy Industries doing subcontract production of the rear section of Bell's newest 214ST, in progress _ since last fall, has been suspended. The executives in charge of aircraft production of manufacturers find that [helicopters] are "not as tempting as combat aircraft or passenger planes," (acc:ording to managing director, Ikeda). ' The industry's top manufacturer, Kawasaki Heavy Industries, has set a goal increasing = its production of helicopters from 60 billion yen between 1975-1979 to 100 billion yen between 1980-1984. Fuji Heavy Industries plans to increase its production from - 24.4 billion yen to 32 billion yen during the same period. In comparison, however, with world standards these figures are insignificant. For example, Bell's annual helicopter sales is said to exceed 900 million dollars. - Thus far, most of the helicopters flying in Japan were developeu by foreign manufacturers. - H2licopters for industrial aperations, such as ones for spraying insecticides, con- _ ducting land surveys, and for new reporting are mostly built by Bell and Aerospatiale (France); and last year, Russian-made craft were i~nported and are in use now. Many expect Kawasaki Heavy Industries' BK117 to increase its share in the Japanese market in the future; however, it would appear that a time has come in which Japan must review the industry's present status and consider helicopter promotion measures. Industry's Joint Ventures , Tokyo NIKKEI SANGYO SHIMBUN in Japanese 27 Jan 81 p 1 ' [Text] Beginning this fall, the Japanese aircraft indus*_ry expects to have its _ various commercial aircraft projects organized under a single "core unit." The three ma,jor aircraft manufacturers--Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries--have been studying the formation of the "core unit" since last fall. To date, it is strongly felt that the functions of the "core unit" would consist of (1) serving as a recipient of government subsidies, while principally involved in developing and conducting research in [aircraft] technology; - and (2) the projects responsible for profit-making operations, such as mass-production ' and "after=sales services," as in the case of the Japan-U.S.-Italy joint development of the Boeing 767 passenger aircraft, will be consolidated under a"business division" - of the '�core unit." Although rahat is needed now is compromise of requirements between the aircraft bod,y manufacturers and Ishikawajima-Harima Heavy Industries, the manufacturer of engines, the aircraft industry now entering a period of internationalization rxill be at once moving in a direction of complete restructuring. At present, the commercial plai~e divisions of the aircraft industry, with the exception of cases of individually developing a new plane, have separate contact - points, even for the ~oint development of new models in which the entire ~ndustry , participates as a whole. For the YS11 passenger aircraft, there is Nihon Aeroplane : Manufacturing Co. (headquarters, Tokyo; presently involved only in after-sales services of spare parts); for the development of the Boeing 767, there is the Civilian Trans- port Plane Development Association; and for the Japan-Britain joint development of _ the RJ500 jet engine, there i.s the Jet Engine Technology Research Association. 44 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY ~ On top of this, since a study is now being made of the new YX (YXX, the next term commercial aircraft) Development Project, another contact point would be needed ~n the future. There is a fear that such a complex industrial structure would lead to decentralization of the industry's strength and contribu~.e negatively to the develop- _ ment of the industry. Because of this, last summer, the Aircraft Division of the a Aircraft and Machine Industry Council made an interim report on the formation of an integrated organization and the industry began its study of ~:ie feasibility of such an organization. _ - On the other hand, the Ministry of International Trade and Industry, by the end of last year, solidified its position to dissolve the Nippon Aeroplane Manufacturing Co. which had been established by 50/50 investment of the government and the aircraft industry. With this, the industry began to accelerate its examination of a new core organization. As a result, to date, the industry has decided upon a basic policy that the "core unit" would be a corporation, either as a joint stock corporation or an incorporated body, that would conduct research and development of large commercial - aircraft projects, and absorb the New Aircraft Technology Development Center, which currently comes under the Japan Aeronautical and Space Industry Association. The YS11 and those profit-making projects, by virtue of mass-production (such as, the Boeing 767), "will be placed within a division of the core unit," (according to an executive of the industry). - However, an attempt to make ["the core unit"] an organization capable of encompassing _ both the production of aircraft bodies and engines is encountering some differen~es of opinion between and the rest of the industry. The former insists that, "there is no such case of joint production ar,ywhere in the world. Since the engine is sold to many aircraft b~dy manfacturers, the engine division should be independent." Because of this, it is expected that the FcJ500 project may - not be incorporated into the "core unit" and that the industry will be "two-tiered," consisting of the aircraft body and engine divisions; however, the aircraft industry _ plans to determine its course by this summer, with reference to the council report. By fall, it hopes to establish the core unit. 1. Commercial Aircraft Development and i~~~~~~t~~e~3 Production Structure Devised by - ~~9'~~~�~t~~9 Aircraft Industry Z~ ~~2x,1~1 2. Core Unit (development operation and ;rt~' gt~a~~~~t:s- recipient of subsidies) (Affiliation) ( < New Technology Development Center ~ s le ~v` R ~ 3. (Note)--under Pxamination Y ~ ~ ~ 4. YS11 Project ~ z ~ 5. B767 Project ri :~:x, ,n~~ ~ 6. New YXX Project (future) i~(F)'~~�Z:~:~-r,- - 7. RJ500 Project (future) ~x:; � zr~t-n- 8. Aircraft Body - Engine Manufacturers 9. Subcontractors, Parts, Material Manufacturers 1~5 FOR OFFICIAT. USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY 10. Present Commericial Aircraft Development, Research and Production Structure ~ 11. YS11 Pro~ect (Nihon Aeroplane Manufac- 4u ~~0~~(l9N~' ~f~C' ~S#~I turing Co . ) ~~s ~te ~ Rj 12. B767 Development (C~mmercial Transpnrt ~t ~ a;~;~~R q~ x Plane Development Association) ~ ~ ~ p~~ ~ ~ 9 13 . FJR Research ~ ~ ; U3) ~y*., RT 500 Development - . ~ ~ y~ (Jet Engine Technology Research ~ ~ ~ Association) 14. New YX Project Study - ~ ~~~-n- =�~~>t-n- Japan Aeronautical and Space Industry � F~;i ~~:~Mf_h_ Association ~ 15. Aircraft Body Manufacturers ~ 16. Engine Manufacturers 17. Subcontractors; Parts, Niaterial - Manufacturer~ Fan~ et STOL Tokyo NIKKEI SANGYO SHIMBUN in Japanese 30 Jan 81 p 19 ~ [Text) The development of the firsr Japanese fanjet STOL (short take-off and landing), promoted by the Science and Technology Agency and the Na~iox~al Aerospace Laboratory, is approaching a high point. Hailed as a~et most suited to Japanese airport con- diti~ns which require short runways and low noise levels, its research and de�~elopment has been conducted since fiscal 1977 through joint efforts of domesti.c aircraft manu- facturers. Last year the manufacturers began working on the major portions of ti~e - c.raft, such as the development of a domestic jet engine and manufacturing of the - body; it is expected that if everything goes zs planned, the craft will be completed during fiscal 1983 and the first test flights will begin. The Science and Technology Agency, whi~h has been promoting the project, wants to develop the STOL as a successor ' to the ''YS11," the major domestic air transport now becoming obsolescent. In the immediate future, [the AgencyJ will make all efforts to develop its major equipment and instruments. - To Be Completed in 1983 ~ Although the demand f;,r air transportation in Japan is increasing every year, expansion and construction of new airports are becoming a problem; furthermore, due to noise . problems the use of airports is being regulated severely. The fanjet STOL is a new model whose development is being promoted with domestic technologies as a carrier suited for these heavily regulated air transport conditions. Since the development - of the commercial STOL craft has been thus far limited to two cases worldwide, one by NASA and the other by U.S.-Canada joint venture, it constitutes a challenge to the entire field of new aircraft development. The STOL is unique in that its fan~et engines are mounted above and forward of the front wings. When large flaps are lowered during r_ake-off and landing, the exhaust gas from the engines flows downward along the upper surf~ces of thQ front w~.ngs and flaps; this creates a large uplift force and allows the craft to talce off and land within a short distance. 46 FOR OFFI~iAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY The present intermediate-short distance jet transports require 1,500-2,000 m runways, but th~ fanjet requires only about half that distance or 800 m. Also, since the engines are mounted on the front wings and the craft can take off and land at a ateep angle (normally, entry angle is at 3�, but for STOL it is 8-10�), anuther advantage of the fanjet lies in the reduction in the size of noise affected areas surrounding the airports by as much as 1/10 of those areas affected by conventional - ~ets. For this reason, it is expected that local airports with 1,200 m-class runways which could heretofore accomodate only the YS11's will be able to handle craft with greater transport capabilities and this would contribute to large reductions in airport consolidation expenses. The STOL now under development is 30.3 m long and can accomodate 100-150 passengers, equivalent to the capacities of the conventional B737 and DC9; it weighs 45 tons. A revised version of the domestic jet transport C-1 is used for the body and four FJR710 fanjet engines, developed under the "large-scale project" of MITI's Agency of Industrial Science 4nd~ Technology will be used. Japan has accumulated experience in research and development of such aircrafts as _ the commercial transport YS11, military G-1, STOL hydroplane PS1 and of fanjet engines by the Agency of Industrial Science and Technology. The present development [of the STOL aircraft] is conducted on the basis of these experiences and dcaestic technologies. Five aircraft manufacturers, Kawaski Heavy Industries, Mitsubishi Heavy Industries, Fuji Heavy Industries, Shin Meiwa .Industry, and Japan Aircraft, are engaged in the development of the STOL body; three companies, Ishikawajima-Harima Heavy Industries, Mitsubishi Heavy Industries, and Kawasaki Heav,~ Industries, are pz~~ticipating in the development of the egine. The development [of the STOL] started in fiscal 1977 and basic designs were completed between fiscal 1977 and 1978; the manufacturing of the powerful lift-off system began in fiscal 1979, Based on these, as of the current fiscal year, work has begun _ for the manufacturing of such major parts ~s the body, control systems, and the FJR engines. _ The total cost for the development of the STOL craft has been estimated at about 20 billion yen; 4,385 billion yen hzs already been appropriated in the government budget proposal f~r fiscal 1981. It is expected that the prospect for a continuous and steady development of the craft i~ good. The Science and Technology Agency wants to complete the entire project within fiscal 1983, continue test flights through 1985, and thereby verify the technology of the STOL, Aircraft Parts Manufa..turers _ Tokyo NIKKEI SANGYO SHIMBUN in Japanese 30 Jan 81 p 7 [Text] The machine parts manufacturers are rapidly converging on the aircraft industry which is considered a promising growth industry of the next generation. This is because while aircraft parts such as bearings and rodends have been heretofore mostly exported to the United States and European markets, domestic demand for them has increased with [the scheduled production of] the next term major combat plane 47 FOR ~FFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY "F15" and the newest medium-class passenger aircraft "Boeing 767;" the latter being developed jointly by Japan, the United States and Italy. Furthermore, because the - specifications of the aircraft industry require far more accurate and precise proces- sing than that required by ordinary industries, the parts manuracturers can expect _ a"bonus" in the form of greatly improved technological standards. - Tokyo Screw Manufacturing Co, the leading screw manufacturer, will expand its _ production facilities for aircraft screws by investing about 1.3 billion yen during the coming 2 years. This equipment investment will be targeted for suxface processing, heat processing, and machine processing facilities. This step was taken in order to cope with the changes in demand situation of the F15 and the next term sub-detector P3C, both of which will mave from test-production to delivery stage. In conjunction with this, the percentage of aircraft screw sales in the total sales of the said company is expected to rise from 25 percent (about 3.2 billion yen) in the September 1980 period to 30 percent (about 4.2 billion yen) ir~ the September 1981 period. As its sales to the Defense Agency increase so would the stability of its - management. According to president Takami Takahashi (concurrently, chairman of Tokyo Screw) of Japan Miniature Bearing Co., Ltd. which is the parent company of Tokyo Screw: "We. would like to reinforce the facilities at Tokyo Screw in the future. This would _ be supported by the en tire minature bearing group." At the same time, Japan Miniature Bearing itself will strengthen and expand its ~ product line for the aircraft industry. This company produces, mostly for exports, miniature bearings, rodend bearings, and micron gears for aircraft; however, its policy is to channel these products to the domestic market as soon as tfie market becomes active. Qn the other hand, the precision ball screw industry has also concluded that, "After this spring when every company in the industry would have completed its program of equipment reinforcement for the time being, there is the danger that the supply and demand balance with respect to the major screw user, i.e., the machine tool industry, might break," (according to pres~dent Takatoshi Kondo, Tsubakimoto Seiko). Based on this view every company is now rushing to open up new markets. Under this situation, one of the new markets which the leaders of the industry, Nippon Seiko K.K. and Tsubakimoto Seiko, are eyeing is the aircraft industry. The reason for this is that precision ball screws are used in aircraft bodies and are indispensable for high performance machine tools whicfi process aircraf t bodies and their major parts. Consequently, it is regarded that when domestic production (~ncluding license production) of combat, surveill~ance and passenger planes increases, "there will be demand [for screws] that would be greater than the increased amount [brought en by the domestic aircraft production]," (says president Kondo). In addition, although these are not parts manufacturers, Mitsubishi Heavy Industries ~ and Kawasak~ Heavy Industries are emphasizing the development of servo (super precision oil pressure) valves. Furthermore, in the area of bearings too, NTN Tokyo Bearing Co., Ltd. is promoting expansion of sales of aircraft bearings; it would - seem that for same time to come the macFiine parts industry will continue to converge on the aircraf t industry. 48 FOR OFFICIAL IJSE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY New Co~miercial Aircraf t Tokyo NIKKEI SANGYO SHIMBUN in Japanese 3 Feb 81 p 8 [TQxt] The sel.ection process of overseas partners for joint development of th~ new YX (YXX next-term commercial aircrafts) is approaching a decisive stage. The possi- bility of a joint~ venture with Airbus Industry of France and West Germany is slim. - The consensus of the Japanese aircraf t industry is that "a joint devElopment will most - likely take place with America's Boeing and Holland's Fokker", (according to Kiyoshi Yotsumoto, chairman, Kawasaki Heavy Industries). The attitude of Boeing, expected - to play a central role in the joint venture, is one of extre~e caution. It is said _ that Boeing's "real intention" is one of "keeping its interest unpublicized," (says a representative of aircraft industry) so as to avoid competition with other crafts _ which Boeing aims to sell. The Japanese aircraf t industry wants to select its partner _ before the beginning of the fiscal 1981, the year for which subsidies for preliminary designing have already been approved. The success of the negotiations would appear - to depend considerab ly on the internal affairs of Boeing. On 20 January, Iwao Shibuya (managing dix~ector, Fuji Heavy, chairman ' c~f the YXX Special Committee of the Society o~ Japanese Aeronautical and Space - Contractors, and Kenji Uchino, vice-director of Commercial Aircraft Development Association vis~ted the Boeing headquarters and exchanged opinions with Boeing representatives. Originally, Kenji Ikeda, managing director of Mitsubishi Heavy Industries and Satoaki Yamada, managing director of K~wasaki Heavy Tndustries were - to accompany the two officials so that "full-scale riegotiation:" could be held. Since, however, "Boeing was unprepared for a full-scale talk" (according to managing director Ikeda), the delegation was limited to the two officials named above who in fact made up the advanced party. "Subcontract Coloring" To Be Washed Away "All we did was to explain Japan's position to Boeing" tsaid managing director Shibuya); this was the official announcement concerning the talks. As for the XXX development, the Japanese industry is soldifying its basic policy consisting, among others, of (1) at the stage of the determination of [mutual] intent, Japan will participate in all business areas, including basic designing, detailed designing, rnanufacturing, ~ and sales; (2) Japan will be responsib le for sales in specified districts. This is ~ because the industry aims at washing away the "subcontract" coloring whicfi now permeates - the YX project that is developing the Soeing 767. , The negotiations are focused on sales network. According to s proposal submitted by � - Fokker, Boeing will be responsible for the United States market, Fokker the European market, and Japan the Asian market. For Boeing which has always dealt with markets worldwide, it is strongly felt that the restriction of the market applicable only to - this joint development model is unacceptable; at the end of last year [BoeingJ sub- mitted its own version of sales and production systems based heavily on its previous records. The present visit to Boeing was made because "if Japan remained silent [Boeing] mdy take it as Japan's c~nsent" (said managing director, Shibuya, Fuji Heavy Industries). It is, hawever, unlikely that a single meeting would lead immediately to resolution of opinions. 49 ~ ~ FpR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIQ?L USE ONLY Besides, Boeing is now busy trying to develop and sell its 767 (210 seats) and 757 (180 seats). It is also conducting a study in demand for the 737-300 (130 seats), a revised model of Boeing 737; the final decision to develop or drop this model is expected to be made between this March und May. So Long as Conditions Fluctuate... Since the YXX project aims at development of 140~150 seat class aircraft, it would not 3irectly compete with the existing plans. However, it is natiiral for Boeing to feel that if it were to reveal the new plan it would affect th~ buyers of the _ Boeing 757. In so far as demand situation after the latter ha?f of 1980, wh~n the YXXs are scheduled to appear, remains uncertain, there will continue to be too much fluctuation in conditions surrounding the projPCt to allow for any determination of concrete proposals regarding development schedule, the size of the aircraft, etc. - Under these circumstances, the real feeling of Boeing seems to be cne of "letting the present plans settle down a bit before comvaitting itself to 'next' [series of projects]." The Japanese industry's policy concerning the present development plan is to obtain a tentative agreement by the end of March. Since Fokker officials will visit Boeing before they arrive in Japan on the 4th, the two parties will discuss the strategy of - Boeing. Since Japan's partner [Boeing] is the world's larges~ passenger plane manu- facturer, it is unlikely that things will progress according to Japan's wishes; on the other hand, if Japan keeps on making compromises, the basic policy of the YXX development would fail. Independent Research Is Important - The Japanese [aircraft] industry is taced with these conditians. Although managing director Shibuya of Fuji Heavy Industrie~ says that "Since Boeing is well aware of Japan's situation such as the budget system, *_here are no prolilems," it is doubtful whether talks among the three parties includ;_ng Fokker will be resolved smoothly.... Among the aircraft industry sources, there are those who are beginning to voice the view that "the present situation would last for another 2 or 3 months. Japan cantiot cope unless it can catch the post-~mid 1980 market trends and conduct independent research." COPYRIGHT: Nihon Keizai Shimbunsha 1981 . 9710 . CSO: 4105/122 50 FOR OFFICIA~ USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFiCIAL USE ONLY SCIENCE AND TECHNOLOGY DIRECT STEP-ON WAFER MACHINE TO BE FOCUS OF SUPER LSI WAR Tokyo NIKKAN KOGY~ SHIMBUN in Japanese 26-28, 30 Jan, 2-4, 6 Feb 81 [26 Jan 81 p lI] ~ [Texr,] When the subj ect of super LSI comes up, electron beam exposure immediately comes to mind. Now, despite the fact that mass production of 64 K units con- sidered to be the gateway to super LSI has be~uny there is no talk of the use of electron beams other than in the production of masks. This is becau~e l.ight _ exposure optical technology, which in the past was thought to have approached its limit, has undergone sudden development and most recently has become capable _ of making circuitry of the order of 1 micron, while the turn of electron beam technology had not yet come around. Th is is why wz looked into light exposure optical technology = activities in waf~r-stepper which is presently the topic of - discussion in the semiconductor industry. 1 Micron Order Is Possible "Japan, which bested the United States in the 16 K, was expected to increase its margin of superiority even more in the matter of 64 K units, which are much more difficult t~ produce, and tnere was the possibility that this situation would relight the flames of the Japanese-Amer ican semiconductor battle once more, but the situation is just the reverse. American industries such as TI and Mostec already possess production capabilitie s for the 64 K in the form of the "indica- tor" that is the stepper which they acquired early in the game. One of these companies is said to have 20 such unit s already on hand. In contrast, the Japan- ~ ese companies have steppers on order but these are limited to only two-three units at best, and the situation is far inferior. To be sure, 64 K can be pro- ` duced without steppers...." (official 05 a certain semiconductvr maker) The semiconductor makers made their in itial super LSI by the exposure techniques of each company, but the next product (actual production of 64 K and 256 K) will be produced by steppers, according to a consensus of company officials which was arrived at very recently, and it appea.r s that it will be this fall before the capability will be acquired" (man in charge of steppers for a certain campany). - _ "The top production tacilities for producing semiconductors in the eighties will probably be sputtering and etching facilities" (ufficial of equipment makers _ other than steppers). - - 51 . FOR OFF[CIAL USE ONLY = ' - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY _ "The preaent units ar.e only good for 256 K, but units aimed at 1-0.7 micron _ line width have appeared, and once the 1-micron level can be assured, a 1 r ;.i- bit super LSI should become possible. It should be possible to go to 1'~.~~1L ex- posure by 1990 at this rate" (sect3,on chief in production of one of *.he ~aker's production technology section). American Influence Ix~troduced Large Volume The above reflects the most recent situation in the semiconductor industry. Now, what is this so-called stepper, which does not use electron beam engraving (mask - forming is used) but uses optical technology to mass produce super LSI and which ~ already controls the semic~nductor contest with the Japanese? This technology was first developed and announced by the GCA Company of the United Stat~s and the product was called D9W (direct step-on wafer) or waf~:r st~epper, and it is now called wafer-stepper. It is called a one-tenth reduction projected - light exposure facility in Japan. Explaining this facility in simple termin- - ology, unlike the method of one-step transfer fram a. photo mask with mask aliner, _ as was the practice in the past, the circuit pattern of 10-fold enlargement on a mask original plate reticle is pro~ected through a lens directly on a wafer at - 1/10 reduction to ef~ect the transfer, and this operation is repeated (step and _ repeat) to expose the entire wafer surfa~ce. Near ~ltraviolet light is used for - the light source, and the so-called 3-mi~ron barrier of the past nas been over- come by a wide margin, to about 1-micron width. At the same time, the facility - is suited to mass production, unlike the electron beam syste~. When the GCA Company announced this development in the fall of 1977, there was sudden attention: there was a stampede of orders, and the New York TIMES intro- duced this facility. The American semidonductor market, whi~h ha.d been badly hit in the quality and mass production technology related to 16 K production to the extent that more than 40 percent of the American market had been taken over - by the Japanese, decided that the only way it could recoup itself in the next race for the 64 K LSI was the early introduction of steppers, and they all placed - orders. It is said that the leading industries such as TI, Motorola, and Mostec have 20-30 units apiece. - 256 K Will Actually Be Produced The Super LSI Technology Research Group in Japan directed attention to this direc- tion at an early date. The GCA Company "first demonstrated this ma.chine to .Tapanese users" (assistant director in charge of research and development). A couple of these units were brought to the Super LSI Research Group in 1978, and four units were brought in in 1979. The research results coming from this group ~ included development of the reduction pro~ection transfer device "VL-SR2" and the 256 KDRAM of NJIS which a year before had drawn worldwide attention. To date ' a total of 34 GSW units have been acquired by Japanese companies, which h~ve - - evaluated this unit, and reportedly the conclusion was reached recently to go to _ the stepper for production of 64 K LSI and on. 52 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY _ Top Business Secrecy - - Now, when we inquire of the makers about items relating to the stepper, their �aces change color and they say: "We have no co~ents to make on that sub3ect." - "The top knowhow in the business" will be required hereafter where the stepper ~B ~ concerned, and this is not something that can be realized overnight. A single - unit costs 200 million yen, and mass production requires several dozen such units. As a result, several billion yen will be required once the decision to "go" is made. If trouble should occur after introduction and the units are not usable - for mass production, "a business responsibility which could not be rectified even by suicide" will resul.t. There is every reason to insure that no mistakes ~ are made. This is the agonizing final decision. If a rival should now say, "if - they go for it, so will we" and simply tags along, that rival is in trouble. - This sLrategy is not one which can be treated lightly. When a certain maker announced the start of production of 64 K LSI, there was the rumor "exposure " technology ie the future," and the attitude of the various companies toward the stepper intensified immediatel~, according to a certain story. The semiconductor industry has become very psychotic about the stepper. Now, it is said that once the number of sCepper units a company has acquired or ` has ordered becomes known, then the intentions of that company r~garding semi- co:;ductor strategy will be revealed because the treatment capacity and layo~cer p~operties of the stepper are well known. It may be said that the number of stepper units is the top secret for any company. The selling outfit can say: _ "we sold a total of so many units, but we absolutely cannot discuss sales to any - individual ulant," it emphasizes. _ . In any event, at p�resent there is a rush for orders and rw~:ex~ r.s 3elayed, so that the distribution during the course of this year is th~ contro...:ing force in the business. The stepper is presently the strategic item on the market. [27 Jan 81 p 12] [Text] Successive New Introductions While it is too much for the present stepper, if improvements should be intro- = - duced so that a 1-megabit super LSI memory (a dynamic RAM will have 1 million transistors and the same number of condensers, for a total of more than 2 million units) became capable of mass production, the stepper would most likely control the 1980`s as the light exposure device for "mass production" of super LSI. If this should happen, a vast demand and market would open up. Recently, many new businesses have entered this area to engage in this line. - These are all world famous names. Looking over these names, in the United States . there is the GCA Company, followed by the aircraft parts maker RTE Company (formerly Electromask Co) and the Optometrics Company (subsidiary of the large - automobile parts and semiconductor device maker, the Eaton Com,pany); in Europe _ the Sensor Company (Lichtenstein), Thomson CSF Company (France), and the Phillips - Company (Holland); and in Japan Nippon Kogaku, Hitachi Limited, and Canon which have announced developments or have announced entry. 53 _ EOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY At the present time, GCA is unquestionably the leader, and as of the end of last - year it had introduced 1S0 units, of which 34 were purchased by Japanese makers. This year it expects to produce aboiit 200 units, of which 45 will be shipped to Japan according to Sumitomo Corporation, which is the Japanese representative. = While GCA is having the field to itself, Che situation of the late comers is - that of 3ust about getting to the production stage or setting up the system for production. In Japan, Hitachi has delivered severai units, which is about the _ only record thus far, and most of the companies are in the demonstration or seminar stage. These companies say: "The actual competition will start this year, and the high water mark will be 2 years hence." Desirable Sales Rights To be sure, the stepper battles involve not only the makers but have also enfolded those companies which have participated in importing semiconductor devices in the past. If a semiconductor d~ndustry were to go into stepper introduction, it would have to purchase several dozen high-priced units costing 200 million yen apiece, and the handling costs would became very large. This is why the trade companies are looking toward import representation rights even where there is none;~this _ fight for acquisition is said to have caused f ierce battles and maneuvers, and the situation is reportedly continuing. Such being~the case, what is the demand and the market for steppers? According to Sumitomo Corporation, which is the representative for the GCA Company, this situation can be deduced from the sales situation of a one-to-one projection ex- - posure device which the prosperous Perkin Elmer Company is in. The products of the Perkin Elmer Company f irst appeared 5 years ago, its sales have topped 500 units for the last 2-3 years, and this pace is ex~ected to continue another 2 years. When a product becomes a mainstream item in this manner, sales can be _ expected to increase for about 7 years, and production can rise to as high as 500 - units per year. At the outset most of the companies engaged in produc~g 64 K product were using patterns formed from 3-micron-line width, and these steppers could compete one to ~ - one. As more experience was gained in production a:id the line caidths could be narrowed eventually to an improved stopgap level, a line width of 2 microns ~~ill enable production of 64 K units, a 256 K product will make one the sole producer, = and 3emand will be expected to rise up to a high water mark in 1987 as ~udged from - - the industry logic. It is said that f ive or six steppers are required to produce 100,000 units or more of 64 K per month. Since it is said that the more aggres- sive companies will introduce SO-100 steppers, the world's industries will order a considerable number. GCA Alone Will Produce 3,000 Units According to the American survey company, the Data Quest Company, the number of steppers installed throughaut the world is expected to total more than 1,000 units in 1982, increasing thereafter to 3,000 units in 1983 and 4,000 units in 1984. GCA has a more conservativP estimate of 1,700-1,800 units in 1983. This company plans to produce 150 units in 1980, 200 units in 1981, 300 units in 1982, and 51~ FOR OFFIC[AL USE ONLY ` APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY 350 units in 198?, and it should have a total production of more th3n 1,000 by the end of Z983. It plans to increase production to more than 500 units per year thereafterY so this company is expected to have produced 3,000 un its by the end - of 1987. Since this will be augmented by production from other companies, a unit price of 200 million yen would be equivalent to a market scale of 1 trillion yen. Between 260 and 300 steppers are thought necessary for Japan by 1983, while the - total by 1987 is expected to come close to 800 units, according to Sumitomo Corporation. Nippon Kogaku is more optimistic and predicts demand for as much as 1,000 units over the next 5 years a~d a total market of 1,500-2,000 units. One-to-One Facility Counterattack ~ To be sure, it is not necessarily the case that the stepper market will develop as predicted. It is said that Perkin Elmer will soon market a" one-to-one - exposure device Model 500 which can be used with a S-inch wafer with resolution of 1 micron" (business director N.C. Macdonald). Since a one to one is a total surface exposure mode, it is only natural that its throughput (fiandling volume) _ will be greater than that of the divided exposure mode stepper. If this happens, the future of the stepper will see some great changes. Kenmatsu Semiconductor, _ which serves as representative for Perkin Elmer, actually predicts that the stepper = will not see too great expansi~n. Counter to this situation, the stepper pr~ponents claim "the Model 500 is a dream machine" (Vice President G. Les Eaton). "Can they resolve problems such as pre- cision of superposition warpage and defects (layovers)?" ~assistant reseaxch and development director G.L. Liesser). A semiconductor engineer said: t0I do not believe 7. micron engraving is possible by one-to-one technique, but this is a claim by the most reliable optical maker in the world. The actual situation is that one car~not state positively what the future holds for the exposure device." In any event, it appears that the semiconductor industry in preparing for the age of the super LSI is going to shift from the use of electron beams to some sort of optical technology for the pattern exposure which is the heart of the production _ line. Prec~icted Total Wafer Stepper Units _ ~=,.-~T r~~-7 o)~'~i~ o ~t~:~. lt!;rr. ~ a-r:�x~~ ~ o=~z�~3- , 2 - )000 4 a GCA#t T-99=~ F#1 ~2U00 ~ i00U 5 ~-X!f 1980 81 82 83 80 BS 55 ' FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE OI+1LY Key: 1. source: Rosen Electronics Letter 2. units - 3. Data Quest Co 4. GCA Company 4. Rose Company _ ~ [2$ Jan 81 p 12] [TexL] The Once Booming EB "Aiming at super LSI development, Super LSI Joint Laboratory succeeds in electron beam engraving" (15 March 1978 issue of paper A). "Super LSI will become practic~l as Toshiba aucceeds in developing production equipment r~r engraving circuits with electron beam" (18 July 1978 issue of paper S) . "Joint Laboratory works on super LSI engraving device c~~velopment with capability _ of 0.5-micron design" (16 May 1979 issue of paper A). "Super L Laboratory works in innovative electran beam device capable of producing - 1-megabit semiconductor" (14 February 1980 �iasue of paper A). As reflected by these items in various newspapers, the last S years up to very recently can be said to have been the age of a boom in electron beam (EB) exposure devices for the production of su~er LSI. About the time ~he Itek Company in the United States received the patent from Bell Laboratory to market EB devices (IBM and TI had. already been using self-developed units) the Super LSI Technclogy Re- _ search Group in Japan was organized, and this group pl~ced emphasis on ~B devices from the outset, with three laboratories out of si~t being dedicated to EB-related studies. These efforts were rewarded by the development of three types of EB equipment, including the vari?ble shape beam type electron beam engraving device. As news of EB development of this group and related industrial efforts was being broadcast, the concept that "super L5~ is production with an electron beam" grad- uslly became a"national consensus." The thought that EF~ can operate in the "submicron region" kept people f rozen to the scientif ic sense of awareness without _ _ questioning the practica'1 as~ects. This situation was abetted by the advanced nature of the IC industry along with the rapid growth of this industrial sector, and it was only after 2-3 years that the impression was created that ~B and mass _ production of super LSI are synonymous. The semiconductor companies all intro- - duced EB units one after the otber, and there was the growing impression that "the age of the electron beam is just around the corner" despite the proviso that this was for "mask formation use." Certainly, during this cuper LSI research period there was the feeling among re- ~ searchers and technologists that super LSI could only be produced with EB. "The light exposure technology of the past was the physical limitations of the wavelength of the light us~d and submicron level work is impossible" was the ~ view expressed. Actuall.y, there was the following announcement by this group (29 May 1977) which stated: "The photo Iithography of the past using ultraviolet light is capable of 3rawing ordinary LSI patterns of minimum 3-micron-line aidth. 56 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE UNLY This value is several tens of times the wa~elength of the ultraviolet ligY.t used in its production process, and it is difficult to make patterns accurately below this level due to light interference and diffraction. This is why it probanly will become absolutely necessary to use electron beams or x-rays of much shorter wavelength to create the f ind patterns required by super LSI." Now, why was light exposure thought to have limitations? Light Is "Liieitation of Equipment'.' For about the last 10 years, IC prodcction has relied on a contact method by - the mask and wafer are placed in intimate contact and expo~sd9 and this w~s the technology employed in the p;aduction of 16 K memories and microns. Be- cause of the cl~se contact, patterns could be transferred with good contrast, .and logic dictated that submicron level work was possible. On the other hand, the mask and wafer were in contact constantly, and rhis �aas a source of defects which was further augmented by poor precision together with the incidence of damage to the expensive mask. The proximity (spaced) method was developed which placed a - slight gap between th~ mask and wafer, but nuw the resolving power was limited to 4 microns by the diffraction of light (light was not propagated according to the , slit width but expanded in diffuse manner). This effect was compounded with poor precision, and the actual minimum line width was of the order of 5 microns. _ The one-to-one proje.ction mode exposure device which next appeared on the stage utilizes the mirror principle to pr.oject the pattern of the mask on the waf~r as a narrow ~tmage, there is need to scan the mask and waf er separated by several tens of centimetiers in a synchronous manner in order to realize full surface pat- tern formation, and the precision of this scanning mechanism presented difficul- ties. That is why it was claimed tha.t the minimum dimension possible was 3 microns ~ _ despite the resolving power being 2 microns. _ - In this way, the 3 microns which represented the "limitation of light" actually was the "limitatir~n of the equipment" incorporating the optical system, the precisioz machine:ry, and the electronics, and this limit was considered to be _ roughly 10 times the wavelength of the light used for all practical purposes. It _ may be said that this certainly was not a physical limitation of the wavelength of ' light (0.4 micron). It was the stepper (the one-to-one device which uses near ultraviolet light of short wavelength is one such item) which broke through this limiration of equipmeait to bring the system c:loser to the limitation imposed by the wavelength of light. This device has filled the wide gap existing between EB and one-to-ene equi,pmdnt. At the same time, it has had the effect of pushing ba~k EB dev~lopment until the day that the submicron region becomes necessary. 120 Billion Yen Required . Certainly, EB has the following major attributes: 1) it enables ready duplication oF submicron dimansions, 2) it can directly transfer patterns to wafers, and 3) a si~ort time elapses from research and development to commercialization. Now, what � happens when EB is put on the production line? The direct engraving capability of . 57 FOR OFFICIAL USE ONLX APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY - EB is three plaCes per hour, which ia only one-tenth the speed of the GCA step- per. Assuming that 10 steppers make up a 64 K production line and further assuming that a year's production will involve 20 steppe~�s, replacing th~~f~e with EB will necessitate 200 EB, with each EB costing 600 miilion yen for a total of 120 billion yen, and the economica goes completely off balance. At the present _ rate, it may be after 1985 before EB's turn comes around. _ Trends in Lithography Equipment by Minimum Dimensions - 100%--r 6 t~'"lfrt ~ G C A ~ - . i 2 ~ ~ ~ ~ 1 i ~ ~ ~~488 xl~~'I~c~~~ ; ~ i ~ ~ i i i ~ : ~ 1919 DS~Nyf'sC ~ ~ ~ ; , i9es~~-e'-aA~C ~7 h ~ ~ ~ ; �.5 1975 7oix4i3i*jiC ~'1~7fi~ - 3 i i ~ i ~ ~ I ~ i i ~ i I C ~ i i ~ ~ ' i iq ~ ~ ~ ~ ~ ~ ~ , , ; ~ o .i i ~ 6~c~F~-1'i~( ~ 9 ~ i~) ~ / t~ I I i I ~ ' ~ ' ~ ' 0 0.3 0,5 I 1.25 2 3.0 4 5.0 u a Key: 1. number of IC produced 2. 1988 x line exposure ' 3. 1985 electron beam exposure 4. 1979 DSW mode 5. 1975 pro3ection mode 6. source: GCA 7. close adhesion mode 8. limiting dimensions (micron mm) [30 Jan 81 p lOJ [Text] High Resolving Power with Reduction When IC chips with fine patterns are being produced, light exposure technology of - the past was sai3 to have been beset with the three problems of 1) how to form the fine pattern = resolving power, 2) how many layers of patterns to be developed - at the specified site = position adjustment, and 3) how to handle fine dust par- ticles = defect countermeasure. "How to overcome these problems ;aas the techno- logical sub~ect," explained principal investigator Meiko Takanashi, who was in charge of ~evelopment of the one-tenth reduction exposure device at the Central - Research Laboratory of Hitachi Limited. The resolving power is determined by the numerical aperture (NA) and the exposed area of the wafer. The numerical aperture has the relationship ~ NA = 1/ 2F(1 + N) (F = lens aperture, N= reduction ratio) - and a large numerical aperture is associated with high resolution. The numeri- - cal aperture can be ~nade larger by increasing the reduction ratio. Even when a _ reduction of none-twientieth (0.05) is effected, the mask becomes laz$er while - ther~ is no change between one-tenth and the N value so one-tenth is suitable. For example, the numerical aperture for the GSW is 0.28. In contrast, the N value for the one to one is 1, and the numerical aperture cannot be made greater than 0.2, as a result of which it is inferi~r to the one-tenth reduction facility FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFF[CIAL USE ONLY by two times. "The world's industries including this company have deemed the stepper to be more advantageous than the one to one. This is the only reason we ar~ rushing to prociuce this unit, and this is the logic we are following" (Tgkanashi). Submicron Level Possible ~ The resolving power will also impr~~ve by lowering the wavelength. The theoreti- cai line width for practical purposes is calculated from the followin~ relation- ship between wavAlength and numerical aperture: S~~(1 + N)F (W in microns). According ~o this equation, line width can be made smaller by making wavelength, reduction ratio, and F nuWber smaller. By introducing the limiting values of � these different quantities, the limiting line widttt is 0.445 microns. In this way, the one-tenth reduction exposure method theoretically can bring the resolu- = tion down to the wavelength of light c~r, in other words, to the submicron level. The wafers are gradually being made of a larger diameter in order to improve the IC production efficiency and are reaching the 5-6 inch diameter size. As the exposed area becomes this large, it becomes difficult to focus the pattern over ~ the entire area, and the pattern is distorted: "Combining, a large area with fine finishing dimensions is difficult" (Vice President Lisser of GCA). This sttua- - tion can be rectified by dividing the total area into subdivisions of workable - size for the exposures, and a reduced exposure effect can be exploited. Mechanical Precision Is Foundation Even when high resolution is attained, it is necessary to keep this as close as possible to the theoretical stage. "Just how to develop at the de~ired position" = is the alinement problem, the solution of which is the number one difficulty in ligh~ exposure, and this was the barrier. "This problem was conquered by a mech- anical mode" (Lisser) through the stepper. A wafer resembles a potato chip and will expand or shrink with various thermal processes and even return to its original state. Tna glass of the mask will also expand. A 100 mm diameter silic6n piece will expand 0.3 micron per degree Celsius - while the mask will expand 1 micron. As a result, there is overall distortion in _ the pattern and a blanket exgosure will result in great difficulty in absorbing the error, and the precision can be of the order o= f 1 micron. In contrast, the ' stepper makes exposures of the order of 10 mm square, so that even if the wafer should deform or ~eturn to initial shape, the development can be made individually according to the situation at hand, making position alinement rhat much more - advantageous. It is said that the precision of this alinement is of the order of 10-20 percent, and this is an improvement of up to 0.25 micron for a minimum dimension of ~..25 micron. _ In order to stop exactly at the desired poeition, i~t is neceasary first of all to detect the position by submicron unit~, and a laser beam capable of ineasurement to 0.05 micron is used for this purpose. A shortcoming~~of the stepper is the - slow treatment speed of the step and repeat mode, and this can be partly compen- sated by reduction in exposure time and an XY stage with high-speed movement. On the other hand, position alinement requires superfine movements of submicron level, 59 FOR OFFICIAL USE ONLX APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY and stops must be made within 0.3-0.4 second.. A technology �hich satisfies - these twa cor.ditions is required. This has been attained by the combination of me~hanical finishing technology with craftsmanship~like preci.sion and servo mechanisms, and this is the area where e3ch campany prides itself. Dust Particles Form No Image The photomasks used at present are not perfect and suffer from chrome pinholes and peeling as well as adhesion of dust particles. Dust particles of 1 micron will pass through the filter, and the particles which stick to the mask accumulate sharply with time. They are then directly transferred to the~wafer. If the line width is less than the 1-micr.on leve'l, a 1-micron particle become the source of a fatal flaw. Since as much as 10 masks can be stacked against ons another, the presence of defects in each layer will greatly reduce the total defPCt-free area - through the 10 layers, and the layover becomes extremely poor. The reticule used in the stepper is the original plate, and the pattern can be 10 times as large. The use of a clean room eliminates dus~ particles large ; enough to cause fatal defects in circuit patterns with this margin. For example, if even a 5-ndcron particle adherea, it is reduced to 0.5 micron on transfer. A 1-micron dust particle, which is a lethal defect in the one-to-one mod.e,.~is transferred as an 0.1-micron de.fect by the stepper, and it is actually not de- veloped on the wafer. This is wi~,y there is a decid.ed improvement in the layover ~ffect. In addition, monochromatic light n~~eds to be used to avoid light interference, hYgh degree illumination sources ne.ed to be devised to reduce exposure time, an - automatic focusing unit which incorporates dynamic range into its focusing depth, and establishment of alinem~en.t t~chniques with prec:tsion of 0.2 micron are some of the technologies which ?:he stepper has incorporated. In any event, the founda- - tion for high resolution s,~nd precision is mechanical precision, and it was this technology in the variouss areas of detectian, me~surement, and precision mechanical finishing which made it possible to brea~c through "the 3-micron light barrier." Cc,nceptual Diagram of One-Tenth Reduction - Projection Exposure Device - ~ ~ ~ 1w~A~:-- ; ' i ,otsmr~u~--- ~ ~ ~ (~919i~) , 3 ~ 1 10~'I`L i:l '1 z 4 ` \ I ~ I 5 x t ~a1?''~ ~ xrKNo J Key: 1. illumination thread 2. ZO X magnification of original 3. one-tenth reduction l~~ns (re~icsle) 4. wafer 5. XY movable base ~ 60 F~'~R OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 ~ FOR OFFICIAL USE ONLY [2 Feb 81 p 15] [Texrl "SA1" Classification The GCA Company (presldent and manager, Mo Greenberg), which is the pioneer of the stepper, has compiled a good reco~d to date and intends io produce more than 3,000 steppers by 1987 and grab more than 80 percent of the market by that time. Its mai.n plant iG located in the city of Bedford, Massachusetts, and its sales for 1980 totaled 160 million dollars. Now, 60 percenr of this business was in semiconductor d~vices while the rest was accounted for by vacuum furnaces and laboratory measurement equipment. Th~s is ane of the few over 100-million-dollar businesses from the ranks of the innumerable medium and small makers of the semi- conductor industry. The famous industrial credit survey of the United States, the "Dun Repc~rt," has given this c~mpany one af its few "5A1" ratings, which is the highe~t classification with respect to the business status of an organization. Its industrial scale is increasing, as attested by the construction of a plant . last spring at Chelsford in Massachusetts and very recently a new GSW (name of stepper made by this company) plant an Andover also in the same state, and it~ building ~rea is now 10 times what it was 3 ye~rs ago. At present it pro- duces 16 steppers per ~nonth, which is expected to be increased to 25-30 units by - the end of the year. Its work force ha; increased five times over the 160 of 3 years ago, of which 300 are said to be development personnel. Studies Initiated From 10 Xears Ago We inrerviewed the vice president in charge of GCA technological development, _ Lisser, when he visited Japan a short while ago, with regard to the development of the stepper. What Is the History of GSW Development? Lisser: GCA 1?as been manufacturing a photo mask production facilitq called a step and repeat camera for more than 20 years. The application of this unit to the direct exposure of wafers.and break through the limitation~~of light exposure was being considered more than 10 years ago. We actually produced a facility far pattern exposure on quartz, and the mask production facility "3969" on which development was started. in 1973 was designed with GSW in mind. There was no need _ for this facility at that time, but along about 1975, there was a strong request from IC makPrs that rather than electron beam exposure, "we would like to see a start made on fine engraving using t'~e light exposure tec:hnology of the p~st " and development of GSW was initiated. The first model was demonstrated on 6 October 1977. - Have You Broken Through the Vanguard of Development? Lisser: We cannot say that we are the first. There is also the Woltratic Caspar Thomson CSF which has been announced. We have no patent. It may be said that this facility is a product of the needs of the time. 61 FOR OF~IC[AL USE ONLV APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY Rival Maners are Continually Appearing Lisser: The facilities put out by other companies still have not demonstrated their basic capabilities and design. This is particularly the case with the capa- bilir.y when a number of units have to be matched for production in which it has to be demonstrated that there 3re no ~Lndividual traits and deviations between units. The reason there is high demand for GCA.units is its high reliability, low variab ility between units, and the ready adapt~.bility bo mass ~~roduction. Performance Seems To Suffer at First Glance , Because it is thP first maker in the field, "GSW when compaced witY,. models put out by makers appearing later seems to suffer in comparison at first glance ~ased - on the cataldg.performance," said a representative of Sumitomo Corp~~ration. Cer- tainl}~, when compared to the 1-micron resolving power and submicror.~ position aline- ment capability of 0.2-0.1 micron claimed by some of the other companies, the resolving power of 1.25 micron and total posit3on alinement precision of 0.35 micron of the GSW gives a feeling of considerable inferiority. On the other hand, "the semiconductor makers claim that ~SW is the most reliable," acco~!ding to Sumitomc Corporation's strong statement. The steppers in Japan are all GSW ex- cepb f or those produced domestically and the single RTE unit. It is intended for use in mass prmduction lines. According to an official of a certain semiconductor maker, "the essence lies in whether the performance as originally intended can be fulfilled on the production line," indicating his awareness of the situation. A number of reasons come to mind why great reliability is attached to the GSW, but it eventually boils down. to this company's more than 20 years' experience with the Fhotorepeater and the matching performance between machines wh~ch the rps~archers refer to as;no deviation. In other words, the technological strengt~ which ha.s pursued mechanical precision to give the XY stage to extreme precision in perfor-- mance. Polishin~ at NASA This company has been developing instruments for analysis of astronomical photo- graph s, in the course of which it has been developing measurement instruments for NASA. It turn~ed to use the precision fabrication technology it developed in this area to the production of semicanductors in the micro area and announced the use of the photorepeater in the early sixties. In this manner, it has always been in the f orefront of precision fabrication technology. It uses a special cast product j developed by NASA for the XY stage main body, and it is claimed that this material has stability for over 15 years. ~ The XY stage, which works in con~unction with a laser measurement system, is a three-layer construction consisting of two layers of coarse movement stages over - which floats a fine movement stage supported on a plate spring in which the f.inal positioning is made by operating this fine movem~nt stage with a linear motor. This unit has very high mechanical precision, and it is said Co equal anything the precision fabrication makers of Japar, reputedly the best in the world, can o.ffer. - About a year ago, a cert3in maker had been planning to introduce the stepper and inquired of Sumitomo Corporation the construction of the GSW and caught a glimpse ~ 62 FOR OFFICIAL US~ ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 ~ - FOR OFFICIAL US~, ONL~' of the XY stage, whereupon he exclaimed, "surely, nathing to match this unit is - poosible," according to a story that made the rounds. Ympro�~~ements to the Second Generation - This company's forte lies in the equipment which has been demonstrated throu~n _ actual perfiormance, to which has been in~orporated various improvements as per - requests from the u~ers. For example, the replacement exchange of the wafer - - alinement and wafer h3ndling reticule which was formerly done by hand is now automat;ed and is now linked with the wafer transporting deyice. In addition, the � resol~~!.ng power has been lowered to less than 1 micron and alinement precision _ to Q.l micron in the seconci-generation units. These are said to be op tional items, and the most recent units are said to include a field retrofit policy. - The problem is dPlivery~.time. "We are presently able to guarantee delivery no earlier than the end of 1982 on orders received now, but we are making every _ attempt to assure the Japanese their share of units. Once production can be in- - crea~ed to 25 units per month with the completion of the new plants, there should - be ~.dequate capability to meet any sudden increase in orders after 1982," said ` $umitomo Corporation. "In comparison, t:~e cap~city of rival makers is less than ' 10 units per month, Can they han~'le these increasing orders with such production?" is the cutting retort. [3 Feb 81 p 12] [Text] We Do idot Get Excited or Panic There are five American and European makers competing with the GCA Company wrich at present is the sole pro3ucer of steppers, and these companies ~re Optometrics, :TE Semicon (formerly Electromask Company), Thomson CSF, Phillips, and Sen~or. these companies Optometrics has initiated sales activity in Japan through _ It:o and Company, RTE Semicon through Dai Nippon Printing, and Thomson CSF through _ Japan Kameda, These companies have y et to deliver their first units to semi- conductor makers. These companies maintain that "the stepper battle has just be- gun. Our turn will come after 1982. We have the high capability 'second- geaeration' units, and w~ will be in time for the deci~;ive conflict." This is the co~non view, and they say: "We will not get excited or �panic." Resolving Power of 0.8 Micron The catalog performance of the Optometrics Company stepper is cansiderab le. Its resolving power is cl~imed to be 0.8 micron, placing it in ~the submicron level. _ Its position alinemen~t is claimed to be 0.1 micron level super precision. Its treatment capability is claimed to be 50 wafers per hour, and this is also very fast. The positioning of the reticule aud stand is perfo~ed automa.tically. _ Furtnermoce, it is a compact unit, and there is no need for a temperature con- trolled room among its many features. In other words, it is a so-called model "second-generation" stepper. A certain official of the Ito Company set out to - sell this catalog item to a potential customer abov.t a year agc which wa s a tim~ when aw~reness of the stepper was not nuch advanced so that the party he ~aas ma~Cing his sales pitch to did not give him undivided attenti~n but said: "This 63 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONL`~ does not seem to be a saleable item." As the summer wore on, there was a change to an attitude of' complete attention, and the custo~Qr said, "if this performance can be realized, we would l.ike to purchase it right away," in a comple~e r~versal of attitude. Ito Company h2s since received an ordex irom that company and was ahout to present a dem~n s~ration last fall when the first trouble with this unit was experienced in the United States, so that the 0 Cv~;~any was tied up in correcting this mal- function, and no unit has a~ yEt been ahipped to Japan, according to reports. "Since it is a precision instrument, we expect some troubles at the outset. We are not worried. There has been some feedback from the market, and once these troubles are all cleared up, it would ~e of advantage tio possess this unit." . This is the attitude of Ito, and the first demonstration model is expected in the = summer . - Ito Company expects that the three large makers will need at least 60 units each if the market it envisions should materialize, �or a total of 180 units. This will be f ollowed by 14 other potential customers who are expected to need an average of 30 units each or a total of 420 units. . Add~d to the above will be 1G0 units purchased by foreign capital. In this manner, this company thinks that a total of 700 units or so will be needed to fulfill domestic demand. Since this is = a quantity which GCA alone will probably not be able to handle, there is still considerable time for entry by other parties. Use of the TLL Mode RTF. Semicon also has a proven record in the area of photorepeaters, and it entered - stepper development relatively early, in 1979. It has already sent a demonstra- tion model to Dai Nippon Printing. The product of this company has resolving power - of 1 micron (0.5 micron at best), and it uses the same through the lens (TTLj mode for alinement as Optometrics which can be used with each die, and the pre- cision is the very high value of 0.2 micron. The unit is completely automated, and there is no need for ad3ustments or pre3.imC~rary preparatory operatioris. There is also a dust finding mechan ism for the reticule. - RTE Semicon has the advantage bhat its representative in Japan is Dai Nippon Printing. Dai Nippon Priiiting has more than 20 years experience in the pr.oduc- tion of photomasks, which is said to be the most difficult process in the semi- ccnductor production procedure, and it has the technological strength that it supplied nearly all the makers with these phot~masks, so that thi~ company can provide overwhelming technological support. The RTE Semicon product has already been used by RCA and Fairchild and has a num- ber of outstanding orders. It has a plant in Woodland Hill, a suburb of Los _ A~zgeles, w~ich has been expanded t~o a monthly production of 10 units and is soon expected to be i-~creased, according to.present plans. Accompanying this expansion ~ will be a large re~!~iction in waiting period, and this situation has prompted its _ entry into the Japanese market. IC plans to make a vigorous assault on the market , with its sp~cial campact "Model 8C~ SLR." 6?~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000400010018-7 FOR OFF(C[AL USE ONLY Units Assuring 0.7 Piicron Appearing ~ Thomson CSF announced its photorepeater and stepper combined facility in 1975, - and Japan itameka Enterprise says "this company was probably the first in stepper - development." A practical stepper was developed in 1977, but it was mainly used - for in-plant purposes and there were some problems with the speed and other items. That is why the decision was made in 1979 to dev~Iop a next generation unit based on a new de~ign c~ncept, and this program was announced last fall. The firsc unit of this new model rolled off the line this spxing, demonstrations are scheduled starting in June, and sales are expected to be initiated next spring. This new facility will be marketed with emphasis on 1) increasing treatment volume, 2) improving precision, and 3) diversifying use, as its three main features, The units to be marketed ~rill include the two types for usual LSI use (1-2 microns) (one-fifth and one-tenth reduction) and submicron use and large size use (for magnetic valves anrl CCD use), for a total of four types. Am~ng these units the one to which semiconductor makers have been giving the _ greatest attention is that for submicron use. It guarantees minimum line width of 0.7 micron and is s~~d to be capable of even going to 0.5-micron-line width by pulling out all stops. This is because a lens of the very high numerical - aperture of (index of resolving power) 0.45 is used. It also has fast treatment speed, and as a general use instrument it can handle 80 4-inch orafers per ho~ir - - (40 wafers per hour by position alinement at each die) and 40 wafers per hour (20 per die) in submicron use. This fast prodsction speed is sa~d to be the result _ ' of a double diffraction mode in which alinement signals are generated simultane- ously from tw~ sites. Ths problem with this high peiformance is what the eventual price will be. Development of this facility has been carried out under the semiconductor group in ~ _ this company's central laborato~y, and the actual production and sales w~ll be - entirely handled by its subsidiary, Kameka. Kamek.a Company will expar.d its plant in the city of Paris to three times its present capacity by this fall, and its present nianpower of 60 is expected to be increased sevQral fold in this burn- - ing display of it..~ ir.terest in stepper production. Stepper production at this _ plant is primarily intended for in-plant use, but it also plans to market some units in line with the French Government's plan to fosrer its electronics indu~try. [ 4 Feb 81 p 12 ] [Text] Greatest Interest Shown at Exhibition ~'~t last November's Seikai semiconductor show, an assembly of specialists of the ~ = sEmi.conductor and related industries for this semiconductor producing facilities _ exhibition, the item which drew the greatest attention and the greates;: number of = visitors was the reduction exposure device "NSk-lOlOG" made by Nippon Kogaku, as " � everyone wh~ ~vas there will agree. The precision work group in charg~ of this company's stepp~r at this exhibition said: "We gained great conf idence." First _ - of all, the visitors all flocked around this facility, rating the unit as very - promising in accolades from external as well as interna3 sources. Second, it is 65 FOR OFFiCIAL USE ON ~LY _ ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY difficult to obtain and operate a stepper, whicr. is a highly precise instrument in the ranks of semiconductor production equipm~:nt and which requires the use of a special temperature-controlled room, yet this unit when installed in this - exhibition hall with its atrocious conditions sti1.:1 operated an opening day even - though it had only been installed the day before. "That is because it has a mechanism which operates instantly, and we gained a great deal of confidence in - its technology," said the party in charge. ~ You Are Small - This company has long supplied the GCA Company with lens for the photorepeater, so it is not exactly a stranger to steppers. When members of this company visited GCA in matters p2rtaining t~ the lens, they said: "We may become a ~ competitor in the future, but we would like to see your plant," whereupon GCA = replied tn a rather carefree manner: "You are small; sure you can see ttie plant." Now, as this c~iuY3ny struggled under adverse conditions until it was able to pro- _ duce its owct steppers, it also possessed the lens-making capability which has been the bottleneck in mass production, and it now is a potential competitor which GCA cannot disregard. During the course of the exhibition, GCA made several trips to the Nikon corner to survey the enemy's situation (this show is famous for looking over the competitor's situation and searching for representatives) and measure the throughput of the stepper with a stopwatch in one hand and a tape reoorder in the other. It is said that this episode reflected the Japanese- American competition in these production units. ~ It was about 4 years ago when this company investigated its entry into the stepper _ field. By chance there was an inquiry from the Super LSI Technology Research Group, and rhe net result was that this cempany undertook actual production under the guidance of the group which was attained in 2 and 1/2 years, and delivery was made. "At that time, we were not well ~cquainted with semiconductor processes, and we felt as though we had a large elephant by the tail," said the party in charge. Since delivery, there has been no evaluation or feedback from the group, , but this experience was the basis for the self-development of the NSR-lOlOG" through the company's indep~endent technology and on suggestions from and discus- _ sion with sPmiconductrr maker technologists. - LTSe of Clear Len~ ~ Because this company is a lens maker, the outstanding feature of this facility is the very clear lens which is used, and it is said that new technologies were developed in the areas of material, polishing, and axial setting. Since the lens is ~o clear, the aperture can be the very large value of 0.35, as a result of which - the high resolution of 1 micron is possible. In addition, 1) the illuminat~on system is brighter, as a result of which the exposure time can be shortened and - the fast throughput of 60 4-inch wafers per hour can be realized; 2) a high-speed precision XY stage using an interference sche~ae is empleyed, making for good stability and reproducibility; and 3) alinement precision is 0.25 micron while the off axis mode is used in position alitzement. At the same time, a TTL mode can be exPrcised by the use of two units when there is need for alinement at each = die. ~ 66 - FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OF`FICIAL USE ONLY This company announced this development in February of last year, and as there were no damestically produced steppers at that time, it received tremendous reaction and encouragement from the semiconductor companies. `Phe reasons for this great acceptance included 1) the price was a low 135 million yen; 2) there - wae no language barrier, and aftercare is simpler with a dome.atically praduced item; and 3) the fast delivery date. In addition, it is said that there were people from all the semiconductor makers (25 companies and 50 businesses) taking notes at the seminar held last fall. All the companies participated in operating this fdcility and evaluated it for actual resolution, alinement, and throughput, ` which they rat~d very highly. No ma.tter how cheap it may be, this is a high priced item which costs 1.5 billion yen for 10 units, thereby necessitating a ~ prompt decision and responsib ility, so the parties in charge at the various _ companies are extremely discrete. On the other hand, there is a need to obtain steppers faster than other companies and beat them ta the draw if any company is going co wl:n out in the production - of 64 K and the succeeding super LSI, and the distress of the semiconductor in- dustry is easy to understand. To be sure, Nikon is always said to force the - issue by saying: "Please do not divulge any order plans." _ There are presently orders for 5 units, and several large compan__as are can- sidering orders at the 10-unit level. It is said that practically every company _ has orders for a single unit. In view of this favorable sales picture, this company is planning increased production of steppers at its Oi plant, and produc- tion is already several units per month. There are plans for more future expan- sion, but the present situation is said to be one in which delivery can be made - within a year. Confidence in Its Participation This company has had one or two experi~nces in the past in producing mask _ aliners where the semiconductor production deivices area is concerned, but it - quickly withdrew from such production, and this stepper repreaents the first - real shot this company has fired in this area. This facility has been the cen- tral axis for retrieving lost ground in the area of semiconductor production eq~uipment. At the same time, it later announcec' its� sutomated reticule defect finder and light wave interfezence coordinate mzasurement device, which are being systematized as associated equipment in the strategy this company is pur- suing to develop this semiconductor production facility as the first post camera - candidate, To this end this company hopes t~ "capture at least half the share of the Japanese market and more specifically sell a total of 500 units." [6 Feb 81 p 16] [TexfJ Hitachi in Quick Decision To Enter Hitachi Limited was the next to follow Nippon Kogaku in d~mestic production of steppers. This company announced the development of its one-tenth reduction - pro~ection exposure facility in May of last year and immediately entered into _ production. It has already received orders for more tha.n five units for use - both in its plant and for external use, and it is to be noted tha.t this company _ - has led Nikon in actual delivery. = 67 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY The stepper of this company can transfer superf3ne circuit patterns of 1-micron- line width on ailicon wafers with position alinement precision of 0.2 micron, and - it has an automatic correction of positional errors by fi�ie movement correction - - of the reticule in the new positioning scheme which is employed. There is, however, a problem in the area of sales of the stepper produced by this company in that it will be handled by the measurement equipment business group (sales will be handled by fiitachi Sangyo) and there is the question of how well thi,~ business can be integrated in with the other semiconductor efforts, according to industrial sources. Where rival makers are concerned, a purchase of the Hitachi stepper will result in the key step of the semiconductor process, pattern exposure, being controlled by H~.tachi and incurring the possibility that their business strategy may be controlled from the outside. This fear may stand in the way of sales. Thus any sales will be limited to companies which do not compete to any ~ great degree with Hitachi, At the same time, the maintenance control is initially a very impor~ant item for this type of equipment, necessitating the dispatch~of service people along with the ~xod~.ict, so that a sudden expansion in sales is difficult. This is why the present sales plan is fairly restrained, with sales of 8 units in 1980, 20 units in I981, and 30 units in 1982 being planned at the present timE. Pathfinder in Reduction Exposure In addition, some problems have crop~ed up in the product which has appeared on the market, and it is said that a modified version is now being quickly developed. Furthermore, the activities at the Musashi plant which is the stronghold of this company's semiconductor activities are said to be at fever pitch in efforts to come out on top in the race for the 64 K, and how to maintain both programs is a major problem. When these problems are licked, it is thought that this company w~.ll be in a good position to confront GCA. Canon has greater experien~e in semiconductor production equipment tha.n its rival, Nippon Kogaku. It developed this country's first mask aliner "PPC-1" in 1970 and succeeded in ~oncontact development through equal magnification projection, followed by development of the proximity (gap) mode aTiner in 1973 and the world's �irst use of a continuous ultraviolet light source in 1978. It introduced a one- half facility in the area of step and repeat mode reduction exposure in 1973, = followed by a one-fourth facility in 1975, indicating its pioneering role. ~ At the present time, this company has bested the American campanies K and S, Caspar, and Cobilt to top the world in sales of the close adhesion (in sense of proximity) mode. While it is sometimes said that the contact mode has seen its _ time, the actual situation is not so, with orders in~reasing each year, and salea are taking place automatically without any business activity. A Canon official said at last fall's semiconductor exhibition: "While everybody is talking about the stepper and gathering at the other company's (Nikon) exhibit, ~ahat is seeing actual sales now is the contact m4de PLA-500, and we have already sold 300 units over the past 3 years. The reason people pass by our display ~s because every~ne knows what our unit can do." 68 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY The semiconductar strategy of Canon is one o+~ "take over the market b,y appearing - later on the scene with the best product," as demonstrated by its success with the contact mode. In this guise its present target is said to be to be'invasia~~ of the field of mirror type projection 3evices~,on which Perkin Elmer presently has a str~nglehold, and it developed a facility for use with 5-inch wafers, which Perkin Elmer has not yet marketed, 2 years ago and invaded the mark~t last year. This facility has resolution of 1.5 micron,~and a line width of 1 micron can be re$lized with a continuous ultraviolet source for the production of super LSI. A ~ number of orders are said to have been received, and production~is r~ported to be proceeding smoothly. The stepper is presently ur?der development, and it is said that the latest versyon - of one-fifth or one-tenth reduction exposure with laser beam auto alinement " mechanism is e~ected to appear in the market in 1982. Canon believes that the Japanese influence of Nikon and Canon will take ovea~ in - the end in the two areas of the mirror mode and the stepper mode. They base this conclusion on these two Japanese makers being optical equipment makers with the capability of producing lenses while most of the Western makers with the exception - of Perkin Elmer use a Zeiss lens, as a result of which they not able to match - the Japanese products. At the same time, there are:limitations to Zeiss' lens production capacity, and this is expected to become the bottleneck in mass pro- duction. Then there is the delivery time. The Western industries must pick up - _ orders for delivery from now to the end of nex~ year or they will be lost. There is the possibility of better instruments appearing in the interim. This is a point where the Japanese industries are said to be in a better position because of the faster and more reliable delivery date. - - Perkin Elmer Is Still the Greatest Concern Now, what concerns the various s~~pper makers is not so much rival stepper makers a~ the Perkin Elmer Company. Kanematsu Semiconductor which represents Perkin Elmer in Japan says: "In the first place, attention was directed at the stepper because of the appearance of the S-inch wafer, which made a radical change in the - situation. The large semiconductor industry began moving toward a 5-inch wafer, � - intending to get into the b4 K and higher area in which they re~ected the Perkin Elmer mirror mode because it is a 4-inch affair. They thought that a 5-inch . mirror would be difficult to achieve so ~hey went to the stepper. Now, if Fer.kin E1-ner succeeds in coming out with a mirror which can be used with 5-inch wafers and has a resolution of 1'micron ~using continuous ultraviolet light),.this _ unit urill be superior to the stepper both in throughput and price. This is why the rival companies are claiming that this 5-inch instrument cannot be pr~duced." The sled for the wafer, which is a problem point in the mirror n;ade, is said to be rectifiable by using a number of rod-like vacuum checks on the ~tage to hold the wafer down by vacuum, thereby holding the wafer in a horizontal manner and ~ relieving the problem. Now, if the wafer size were increased to 6 inches or more, the lens and mirrors would have to be so large that the conditions would become too taxing. It is said ~ that Perkin Elmer is putting considerable funds into research into the x-ray and 69 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY electron beam exposure devices in preparation for such a situation. It is said that the stepper is also under consideration. An engineer of a certain semi- _ conductor maker said: "Perkin Elmer is a lens maker so it will not limit itself to the mirror mode should the stepper be more promising and it would certainly go into the stepper. If this hapgens, it will be Ieft to the few optical equip- ment makers of the world to come up with new steppers of independent design, and this is why Perkin Elmer is being highly regarded. ` - Industries Engaged in Wafer-Steppers - 1~~ 2 DfJ~ 3 bt'~t 4G C A(jIE~) 1977 ~~i~~� 4; , T3~l...''--la ~ SRT ~:i 1979 *~~R]~~1~sfP,,~.~f~, ~ : ~ ;~l }~~'~ff19~~ 1 _ F~1'y~m) 7~ 1980 p}~~~~ 5t~ 7~'~~~~ ' . ~ 7't - ( ~T:i;i s 5t-f 1980 AE3~9Y.-~ CE3~) 1980 X~B~~~~3f~i8~~X 1 9~i]Yl~i'~ 1980 1 1 n 7 e~J �v 7�.Z 1980 ~j 1 03~ '1~1 f 0.1 19 i ~ (~~i5t) ~t~~~-~~F~~ 111~1(77i~F 1981 ~~~~~'~1~,~91J~~~: ' 12~~1 ~ 1982 N4~7= 21 - I 13~'5........_ J=JL~.`_.......,,_ ................:L~-. vl~-~O~l~fl.... (~IEf~D ~~r'C9~13~~ ~ 2 Key: 1. campany (country) 2. development 3. remarks 4. GCA (USA) 5. RTE Semicon (USA) Optometrics (USA) 7. Sensor (Lichtenstein) 8. vippon Kogaku (Japan) 9. Hitachi Limited (Japan) 10. Phillips (Holland) - 11. Thomson CSF (France) 12. Canon (Japan) i3. Perkin Elmer (USA) - 14. Sumito:no Corporation is representative, has a proven record, presently developing electron beam - 15. Dai Nippon Printing is representative, developing compact model 16. Ito Company is representative, 0.6-micron resolution listed in - ~ catalog performance - 17. researching x-ray exposure using 0.35 large numerical aperture - lens 18. has entered Che equipment race, also sells electron beam equipment _ - 19. 1 micron resolution, t 0.1 micron precision, also dev2loping = elec~ron beam 20. has develope~~ top catalog performance equipment, also developing elec tron beam 21. pioneer in reduction exposure, tops in contact mode 22. developing new one-to-one equipment to counter stepper COPYRIGHT: Nikkan Kogyo Shimbunsha 1981 2267 CSO: 4105/137 70 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOP. Or'FICIAL USE ONLY SCIENCE AND TECHNOLOGY ELECTR~-MECHaNICA.L MAI~iUFACTURERS TO CUT IN-HOUSE IC AND LSI PRODUCTION Tokyo JAPAN ECONOMIC JOURNAL in English Vol 19, No 950 14 Apr 81 p 9 _ ~Text~ Japanese producers of limited number of large Sony Corp. is now observing "electro-mechanical products" makers with huge investment the principie to hold down con- ~ such as video tape recorders, funds will control the semi- sumption of semiconductors it = cameras and copying ma- conductor business in the produces for its own to aruund chines~ have started holding future. one-third of the total consump- down in-house ~roduction of TDK Electronics Co., a tion. integrated circuits and large- Tokyo producer of magnelic ~Iatsushita Electronics Corp. scale integrated circuits tapes and ferrite products, had plans to hold its semiconductor- mainly because of snow�balling been aggressively tackling in- related plant and equipment de~~elopment costs. ICs and house production oF semi- expenditures in fiscal 1981 at LSIs constitute the core oi elec� conductors. It once set up a the previous year's level of tro-mechanical products, semiconductor manufacturing around ~22 billion. ~ Recently, several electronic company jointlj+ with Fairchild, In sharp contrast, Nippon ~ components manufacturers but TDK-Fairchild Corp. was Electric Co. eNEC), Hitachi, have discarded in succ.ession later liquidated. Recently, how- Ltd., Fujitsu Limited and other their earlier plans to mass ev~r. TDK has changed the major semiconductor makers ~ produce semiconductors for ~~~~y and is now placing stress are trying to further boost their own use. Canon. Inc., a on development of application production. The combined total leading maker of cameras aad and� peripheral techni~ue of plant and eyuipment invest- copying machines, has decided rather than semiconductors ments of the 11 major Japanese on a policy of producing only themselves. semiconductor makers is esti- = very special semiconductors. ~ps Electric Co.. a Tokyo mated to reach ~ 170 billion in Instead, they will procure ICs, producer of tuners, switches fiscal 1981 on a construction LSIs and other semiconductors and volume controllers, has base, up 30 per cent from the from specialized makers. given up a plan to mass preceding year. Development of new LSIs produce semiconductors. now cost several tens of billions pioneer Electronic Corp., They hope to mass produce of yen a year. This can be ~�hich lans to raise the ratio of and mass market their semi- hardly met by a single pro- P conductors in urder to recover ducer of electro-mechanical ~ n-h o u s e s e m i c o n d uc t o r the huge investments. The prodnction to 20 per cent in a mountin ' su I ressure" products: Everr' specialiaed g ~ pp Y p few years from the present 7-8 makes semiconductor users semic'enduclor producers are ~r cent, �~ill limit its in-house feel it costl to continue in- no�' trying to limit production Y items in nrder to save develop- Production to those whose de- ~~e production. ment investments. signing and production can ;~other factor that dis- Under the situation, possi- hardly be entrusted to other courages semiconductor users hilit}� is ~~ery strong that a companies because of secrecy ~s the difficulty in securing and other reasons. technicians talented in the semiconductor field. COPYRIQiT: 1981 THE NtHON KEIZA.I SHINBUN, Inc. cso : 4120 71 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 - FOR OFFICIAL USE ONLY SCI~NCE AND TECHNOLOGY 'JAPAN ECOtdOMIC JOURNAL' CO~NTS OI3 SHIPPING INDUSTRY _ Tokyo JAPAN ECONOMIC JOURNAI.~ in English Vol 19, No 950 14 Apr 81 p 10 - CEditoriall ~Text~ The working panel of the governtr~ent's council on rationalization of the shipping and shipbuilding indus- tries has started study of future policies for ocean-going _ shipping on the basis of the proposal the council came out with in 1978. which, in essence, stressed maintenance and development of Japan's merctSant fleet despite the _ decline of its international competitiveness. This proposal led to the implementation of a three-~~ear program to help reinforce the nation's merchant tleet through subsidies and other preferential financial ~ schemes. As the three-year program is due to expire at the end of fiscal 1981 i neYt:~larch311, it is necessar~~ to formulate a - new long-range policy to strengthen the shipping indus- ~ try after fisca11982. One thing that must be kept in mind is the increasingly severe international environment surrounding it, Conclusions of the study by~ the council - are bound to have significant influences on the shape of the shipping industry in the future. - ~ti hat is important to begin with is to reconfirm the nece5sity of maintaining and developing the Japanese merchant fleet. This is only natural from the standpoint that Japan is an insular country distant from America and Europe and poor in resources. Her survival depends on the import of foreign materials and fuels to manu- facture goods to be sold abroad. The shipping industry has played a critical role in sustaining the development of the Japanese economy through economical and reliable movements of goods from abroad and to over- seas markets. It indeed is one of the basic factors that has contributed to the rise of Japan as an economic power. Another important aspect of the shipping industry is that it is a majorsource of foreign currency income. It is also significant from the viewpoint of national economic 72 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY security in that it ensures a stable supply of goods required for the nation's industry and life. It is obvious, however, that maintenance and develo~ ment of the merchant fleet presumes that the Japanese shipping industry retain international competitiveness. To this end, long-term, low-cost funds should be . made - available for the building of vessels for hauling key - materials and goods. Thereseems tobea particular need to forr:iulate adeqttate policies both in the ~uilding and - operation of vessels to carry liquefied natural gas, lique� fied petroleum gas and coal, which are rapidly growing in importance as substitutes for oil. Measures for reinforcing the corporate stability of shipping companiesarealsoup for review. The nature of _ the shipping business subjects ~ompanies to instabilit}~, as a high level of profits at one point can easily be wiped _ out later by a plunge of the market owing to e:cternal = factors, such as changes in the international situation, or - a slump, prolonged especiall~~ in this era of slowed economic growth worldwide. To cope with this, shipping companies should be allowed to accumulate internal re- serves when they are enjoying good business. All these measures to help the shipping industry gain in strength presuppose the efforts of both management and labor. There are many things that must be done to _ enhance Japanese shipping competitiveness, but of crucial importance is rationalization of the wage costs of the crews which are far higher than those in the shipping industries of developing countries. While negotiati~ns on this question are already in progress between manage- ment and lab~*, the point is to modernize and make more reasonable the ~~nboard working c~nditions, such as - lowering the reserve crew ratio, among other things. COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, Inc. CSO: 4120 = 73 - FOR OF~'ICiAL U5E ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY MITSUBISHI CHEMICA.L TO PRODUCE CARBON FIBER OUT OF COAL Tokyo JAPAN ECONOMIC JOURNaL in English Vol 19, No 950 14 Apr 81 p 12 ~Text~ M i t s u b i s h i C h e m i c a 1 the equipment simplification, Ind�~stries, Ltd. intends to com- MCI obtained test results indi- - mercialize its new carbon fiber cating that carbon yields can technique featuring the use of be substantially improved over coal as the *aw material those produced by the conven- - c rather than palyacrylonitrile, tional polyacrylonitrile baking as chussen by Toray Indus- technology. tries, Inc. and other fiber prc- Throughout 1981, NICI intends - ducers) by 1982. The chemical to carry out joint application ~ concern is urging autumobile studies with potential users, makers to jointly develop ~ including automakers. Its com- specific applications for the mercialization plan will be coal-based carbon fibers. formulated after the joint re- The :Viitsubishi imow-how search, including study of plant was developed as a spin-off of capacity and deterrnination of its needle coke production tech- capital requirements, is corn- nique. ~ coke shaped in the form pleted. 1QCI consumes about 13 - of needles is made from coal million tons of coal annually to , tar.) Its carbon prociuction does produce coke, making its raw not require fiber stretching as material position a favorable - needed in the processes utili- one. zing polyacrylonitrile. Besides COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, Inc. - CSO: 4120 74 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY - WESTERN INTERESTS DRIVE TO GET GENE ENGINEERING PATENTS IN .;APAN Tokyo JAPAN ECONOMIC JOURNAL in English Vo1 19, No 940 14 Apr 81 p 13 ~Text~ 7'he Japanc,5e F'atenl Office ture, however, seems to have GeneEnginecringRelated recently disrlosed lhat a been just as Western-dom- PalenlApplicatiousFiledwilh prednmimnt 73 per cent of all inated, with Japanese ap- Japauesei'ates~tOfiice gene engineering patent ap- plicanfs holdin~ only two cases, ~~a,,,,~~y, 1980 March, we~~ plications on its waiting list or 15 per cent of the total. c~ses since the beginning of last ycar The disclosure, lhe Patent ~u.s.~ - were filed b Western inlerc~ts. Uffice's [irst on ene en ineer- up;on~ co 9 y Pi Cefus CorP . . . . . 1 Only the remaining 2? per ::ent ing, was made in order to help G.D. Searlc6 Co . 1 were filed by Japanese equival- the Japanese public undersland u~i~ ~s tyol c'alilornia t enls, sug~esti~g a danger ~f lhe facls. The public seems to Sfanford Unlversity 1 Weslern domination of gene have become intcrested in the (France) Pastcurlnstllute 7 - engineering industrial ventures imporlanee and potential 0~ French Resea~ch in Japan, gene engineering since the Evaluation Bureau . 1 According to the office, a patent cla~sificalion revision. ~^^"11e:, ~nP Nethe~landsl Biogen S.A . 1 lotal of 29 applications for Observers thought the Fk1- f west Germany) Japanese patents on gene tent imbalanc~ spotlighled the ~'~~~aps^'~eeringlnslitute...... 1 engineering has been on [ile fact tha[ Western industrial AjincmotoCo ~ wilh tf~e office since January and other researchers have Milsubishi Chemlcal Indushies, Ltd . 1 - 1,198~~ Of the total, American been mounting a fierce gene SumitomoChemicalCo...... . 1 applicants accounted for a engineering patent drive in No~~ Induslrial ma'orit of 15, West ~ uro ean Ja an to head off Ja anese Sclence Insfilufe 4 - J Y P P E~ Aqency of Industrial G and .)apanese only 8. competition. Wilhout seme Science6TechnoloOy.MIT1....... 1 Japan's patent classi(ication really determined rollback eF- Source: Jap~nt,e Patent Olfice stand~rcl was cevised on lhat forts, ahnost all Japanese at- dalc to set ~ene enginecring tempts at gene engineering - apart as a newly-defined field would come up against a wall at the end of last year for if~s of tcchnulogy. This was in of locally established foreign pioneering gene splicing pro- kecpinR with the international patenl rights, as a certain cess developed by two scien- praclice of patent granting. Japanese chemical company lists. Uidil lhe end o[ i~'79, lhere lead~r has put it, they said. But no such patent has yet to - had been sir*~ilar applications Gene engi~eering, including be granted in .Japan. Japa- relaled lo gene engineering, but gene splicing, is rapidly nese patent authorities have re- they liave been wiclely scat- developing into a revolutionary cenlly continued lo announce lered among the older scientific and induslrial tech- their own standards of screen- classificafion calegories as nc~logy encompassing medical, ing such patents, sorting o[ _ parts nf olher kinds o[ lech- pharmaceutical, foodstuff, and ideas or processes and pre- n~~~~gY� many otl~er areas, notably new paralions, bul keeping all a~r '1'I~e office lias unofficially energy development. plications pen~ling. Variot~s figured tf~at such older gene In the U.S., Stan[ord Un~ver- Western interests have called engineering patent applications sity was granted basic patent for it lo start its screenings prohably totaled 13. 1'he pic- righls by the U.S. Patent O[fice sam. COPYRIGHT: 1981 THE NIHON KEIZAI SHIIQBUN, Inc. CSO : 4120 ~ 75 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY S~IENCE AND TECHNOLOGY _ SANYO ESTABLISHES WORLD RECORD WITH PHOTOVOLTAIC EFFICIF~TCY RATE - Tokyo JAPAN ECONOMIC JOURNAL in Engliah Vol 19, No 950 14 Apr 81 p~3 rText] A new world recorct in light- ' linuously lias been developed, it Lo-electric~ly energy conversion says. e:~te of G.91 per cenl has been 1'he cell produced on trial s~~t by Sanyo F;lectric Co., in an basis is only 2 millimeters ex~~eriment wilh solar cells of square. the ar~or{~tious silicnn type. But the new production Acc~rding lo lhe big Osaka method can apFly even to electric-electronic appliance making big celis of 10 centi- manufaclurer, lhe highest melers square. The photo- phutovoltaic efticicncy rates vollaic rfficiency, in the case of known so far are lhe 6.1 per factory production, thus could cc~nt sel by RCA Corp, of the be raised to about 5~er cent ~ U.S., and Ihe f,.47 per cenl by from only ~ per cent attained Fuji Electric Co. of Japan. lasl ye:,r, the company says. - Sanyc~ Eleclric's new solar Use of one reactor to make c~ll is of lhe s~me tliree-layer each differenl layer ensures kind as that ~f Fuji ElecUic. complele or, near-complete liut Sanyu says it made each elimination of undesired im- of the ltiree layers - tl~e p purilies in making the lay~:s, lay~: involvinR electron-short such as dil.~orane in m~king i~ e impi~rities, the i layer con- p layer and pfiospliine in - t~i~ning no impurilies, and the n proclucing lhe n layer. _ laycr conlaining electron- Atlainment of snmewhere lie- - r~dundant impw�itics - wilh a fween S and 10 per cent is said _ dif[ere~nt reactnr. necessary for comme~rcially liesides, a process to produce paying ventures to manir th~ lhree different layers con- facture su:~h solar cells. COPYRIQiT: 1981 THE N~HON KEIZAI SHIIVBUN, Inc. - cso : 41zo 76 FOR OFFICIAL USE ONL'Y APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY ~ SCIENCE AND TECHNOLOGY - FUJI DEVELOPS HIGH POWER TYPE SUN BATTERY Tokyo JAPAN ECONOMIC JOURN~L in English Vol 19, No 950 14 Apr 81 p 13 ~ Text ~ I~ uji Fleclric Co. has develop- _ ~~d a highly-efticicnt amorphous - silicon solar cell. its photovol- taice[ficiency, which is the sun- I;Kht-to-electricity canversion r~tc, reaches as high as fi.47 per crnt. 7'his development was hared at a scientif ic sympc~ium in'I'okyo recer~tly. 'fhe aniorphous silicon solar cell has a single cell surface si�r.e of only 1.2 square centime- ters, Fuji F.leclric said. 7'he new solar cell, on a stain- less base board, has three - layc~rs of amorphous silicon filming - a p-type, involving - electron-shorl impurities, a � ncutral type containing no ~m- - purities, and then an n�type = containing eleclron-redundanl _ im{~~urilies. It is topped with an ~ c~lectrically conductive trans- parent filming made of oxides of indium and tin. 'I'hc n~~w p-i-n c~n ~~umbina- tion? siructurc has proved lo be _ .~Imost i per cent hi~her in photuvollaic e[ficiency than the company's own predecessor of _ 5.5g per cent developed lasl y~ar. . COPYRIG~iT: 1981 THE NIHON KEIZAI SHII~itBUN, Inc. CSO: 4120 77 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 , FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY - UNIQUE SPECIES OF FUNGUS-PRODUCING CELLULASE IDENTIFIED Tokyo JAPEiN ECONOMIC JOURNAL in English Vol 19, No 950 14 Apr 81 ~Text~ 'I'he Japanesc~ Go~~ernment's The cellulase cor-~ing from H erm~ntation licsearch lhe new fungus has also proved - Ir~stitute I~as identified a new so eftective as to work even on species of fungu's-producing a 20 per cent thick cellulose cellulase, that has a sfronger solution, lurning the solution dissolution capacity than any into a clear 12 per cent glucose known precedent. solution in 48 hours. - Such a microbiological dis- A pro:essor of agriculture at covery t~as much to do with the Miyazaki University, well mal. ~n new energy-creating known for his studies on such binmass terhnology. biomass developing technolog; , According to the insti.tute at rated the new cellulase and the Yatahc 7'own, Tsuku'~a County, Japanese sludies on �uch en- - Il~araki Prefecture, of the zymes the most advanced in Agency of Industrial Science the world. But he also cited an - and Technology, the new energetic American research filamentous fungus species it drive to catch up and called for has named "Strain M-41," new Japar~ese eftorts to develop _ procluces cellulase with such low-cost mass-production strung titer tpotency to methcxis. separate cellulose inlo glucose) Obse; vers said tinding a as lo surpass even the t~est really good kind of cellulasc as - developed by the U.S. Army re- well as its prc?duclion source is search institute. becoming a worldwide race be- 7'hal Amer~~~sn-developed cause the modern key'biomass cellulase, now cotnmercially utilizing method of producing av:iilal~le in ,lapan, when tried etiianol ~eti~yl alcohol) as a on a l per cenl chemical solu- new kind ot fue1, out of planls tion of cellulc~se, has turned 65 cansists in fermenting the per cent of the cellulose content plants' starch or glucose con- in Ific solulion into glucose. But tents. Cellulose making up half = lhe cellulase dc~rived frrnn the the lx~dy of almost every ciried new spec;ies of fungus has at- plant hay so far been hard lo lained 70 per cenl. lurn into glucose efficieully be- cause of its hardness. COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, 7nc. CSO: 4120 ;8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY - ELECTROTECHNICAL LABO~2ATORY FINDS NEW WAY TO MAKE AMpYtpHOUS SILICON Tokyo JAPAN ECONOMIC JOURNAL in English Vol 19, No 950 14 Apr 81 p 13 r ~Text) - A new methcxl, oF producing of boron as dorpant results in amorphous silicon for solar ~generation in quality. cells, recently developed by the ~e laboratory has solved H;lectrotechnical Laboratory, this problem by preparing the , A~ency of Indu,trial Science & raw material gas as a special Technology, has worked so well mixture of hydrogen and silane as lo turn out product with an (silicon hydride) at the rate of ~ efficiency of 1,U00 times com 3o parts to one, an exce~ ventional items, tionally greaf content of Ueveloprnent of the new hydrogen, witl~ lhe addition of meth~x3 thus could open a way diborane, a sort uf boron for manu(acture of amorphous hydride, al a cerlain per- silicon lypes of solar battery centage, pressurizing the with much greater efficiency mixture to a level 20 times the tha~~ heretofore, although it best conventional praiuction would slill take some more method, heating it to 3W tinie tn enhance the photo- degre~x C. and releasing elec- voltaic efficiency of ami~rplwus Lric discharges between lwo silicon lo a high enough Ievel placed four ceriimeters for commercial pruducf ion. apart in the mixtu~e at 80 - '['hat levcl is said to he any- watts, 16 limes the best known whe~e between 8 and 10 per method. cenl, but the highest rate so far q~type amorphous silicon atlained in .Japan is less than 7 sample thus created has pro~~ed - per c~nt in experimerts and to be 1,OOU times as high in dark ab~~ut 3 pE:r cert in industi�ial trials. crn~ductivity ~a 5ol~r rell effi- - According tu the laboratory ~i~ncy uniti as lhose - am~~rphous silicon divides int~ made by the best conventional = � ~�~irirnis tYE~es, such as p-type process. I3esides, addition of - cel~rtrnn-shorU, n-lype (ele~- boron has never caused the - tron-redundant?, and p-i-n type undesirable quality degenera- - ( cornbinin~ the types p and n). tion in lhe sample. F'-I~~Et~ i~a~ been difficult io Thelaboratory'sachievement prn~iuce ati a solar cell material is expected lo draw attention of ~ - tx~cause th~~ nc~es~ary addif.ion private businesses engaged in C amorphous si~~con cells. COPYRIGHT; 198I THE NIHQN KEIZl~I SHINB;lN, Inc. ~ cso ~ 412o r" 79 FOI2 OFFICIAL U5E ONLY ~ ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000400010018-7 ~~'OR OFFIClAL USE ONLY SCIENCE AND TEC~LOGY .w' PHOTO TYPESETTING ARABIC LETTER PLATE DEVELOPED , Tokyo JAPAN ECONOMIC J~~URNAL in English Vol 19, No 950 14 Apr 81 p 14 _ ~Text~ _ - A Tokyo printing company should be written manually. has developed a cost-saving Compared with instant letter- electronic photo typesetting let- ing, the~ new plate can shorten _ ter plate for printing in Arabic the time required for typeset- _ that produces a major cut in ting to the onetenth with the type-setting work. cost being reduced to onefifth, - The new letter plate, accord- the company said. - ing to the yliddle East Printing, Printing firms in Arabic Co., facilitates electronically- countries reportedly have no typeset letters for headlines of photo typesetter using such let- catalogues, pamphlets and ters as they mostly adopt the magazines, the iirst of its kind instant farmula. In Western in the world. countries, too, instant tran- So far, it has been impossible scribing is common. = to photocompose or type Arabic The i~:iddle East oil-produc- lettecs for headlines, titles etc. ing countries are a lucrative Th?y, thus, have had to be market for electric appliance, manually written or tran- car, construction machinery scribed by designers. and plant makers. To success- - The company has made a d~ fully sell such products in the sign of such letters on its own region, they are required to _ and formed letter plates for prepare documents in Arabic. = typesetting wi~.h the following lianuals for various machines - features: . and equipment also should be plate caj~ cover all neces- written in Arabic. " sary letters as one letter can be Given this background, de- formed by combination with mand for printed matter in ~ another. .arabic is increasing rapidly. - -T}~pesetting is possible The Tokyo company intends without separatin~ letters, thus to solicit orders through promo- - ' maintaining the unique style of tion of the new machine. Arabic, which, in ~rinciple, COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, Inc. CSO: 4120 END 80 ~ FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000400010018-7