Asia's tariff-hit chip investments to recover by September: Towa
TOKYO -- Japanese chip tool manufacturer Towa says Asian semiconductor investments disrupted by tariff threats from U.S. President Donald Trump could rebound by September.
Towa President Muneo Miura said in an online news conference on Monday that the company forecasts a recovery in orders starting in its second quarter, which ends in September. Investment in memory chips used for advanced artificial intelligence applications would likely take longer, he added, forecasting a recovery by the end of this year.
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Asahi Shimbun
2 hours ago
- Asahi Shimbun
Hopes and fears build as Junglia Okinawa's opening nears
Construction on Junglia Okinawa as seen from The Asahi Shimbun's corporate plane ahead of its July opening on May 3 in Nakijin, Okinawa Prefecture (Tatsuya Shimada) NAHA—With a hefty price tag totaling 70 billion yen ($483 million), Junglia Okinawa's roller coaster-esque journey is barreling toward another summit as the theme park's much-anticipated July 25 opening nears. The construction of a theme park in the northern part of the prefecture is a clear departure from Okinawa's state-led economic promotion measures after the prefecture reverted from U.S. to Japanese rule in 1972. Junglia is one of the southernmost prefecture's largest private-sector projects ever, but it is not the first. Sour memories are resurfacing in some residents who remember another tourism endeavor that backfired even as expectations rise for the new park. When finished, Junglia will operate in Yanbaru, the name for the main island's northern half in the region's dialect. The mountainous area is about 90 minutes from the prefectural capital by car. The park, which will reportedly offer more than 20 attractions, is replacing what was a roughly 60-hectare golf course stretching across Nago and Nakijin. A dinosaur-themed ride and hot air balloon experience are among the attractions with an onsite spa as well. FAILED UNIVERSAL STUDIOS PROJECT No major undertaking is ever free from complications. Before Junglia, the operator of Universal Studios Japan in Osaka announced it was opening a park in the northern part of Okinawa's main island 10 years ago. The central government strongly backed USJ LLC's project, with then-Chief Cabinet Secretary Yoshihide Suga saying a new theme park was the key component of the government's economic promotion measures for the prefecture. However, the project plans were withdrawn about a year later after USJ's management was reshuffled. Dreams of building a theme park in the area would lie dormant until 2018 when marketing firm Katana Inc. and other companies announced a new plan and set it in motion. The only remaining tie to USJ was Tsuyoshi Morioka, who played a key role in reviving Universal Studios Japan and went on to found Katana after going independent. PURPOSEFULLY LOCAL The local business community has high hopes for Junglia. Unlike other extensive projects, the park's operator Japan Entertainment Inc. is based in the prefecture and was specifically founded in June 2018 as part of Katana's efforts for the theme park and larger goal of revitalizing Okinawa. Local ownership may provide Okinawa with a better chance to rebound from the unintended 'zaru keizai' (sieve economy) conundrum. The situation is the unfortunate outcome of the government introducing subsidies in an effort to eliminate the financial disparity between the island prefecture and the mainland; Okinawa was ruled by the U.S. military for 27 years following the end of World War II while Honshu experienced rapid economic growth during the same period. Mainland companies winning contracts for the high-percentage subsidies ultimately made it difficult for locals to benefit from the projects tied to them, something Junglia seeks to avoid. "It is also a project intended to boost the economy in Okinawa and its northern area," Morioka said during a news conference held in January. Japan Entertainment has emphasized the importance of hiring locals, saying it will employ a total of about 1,300 full- and part-time workers by the time the park opens. Junglia's shareholders also include leading Okinawan corporations such as Orion Breweries Ltd., headquartered in Tomigusuku, and Naha-based department store operator Ryubo Holdings Co. "It is a private sector-led project of an unprecedented scale,' said Denichiro Ishimine, Okinawa Electric Power Co. adviser and former head of a council for Okinawa-based economic associations. 'Located at the gateway to Asia, Okinawa has high international competitiveness for its nature and traditional culture originating from the Ryukyu Kingdom era, and the project can help improve the quality of tourism in Okinawa." Counterbalancing this sentiment are voices of concern over tourist congestion. Because Junglia is being built between the prefecture's expressway and the Okinawa Churaumi Aquarium in Motobu, which is already popular with tourists, it is feared that chronic traffic snarls, noise and other negative impacts could worsen the living environment. While Okinawa Governor Denny Tamaki said during a prefectural assembly session that the prefectural government intends to make maximum use of Junglia's opening to create jobs and develop infrastructure around the site, he added, "We hope that the park operator will continue providing information to local residents and having conversations with them." POST-EXPO FALLOUT Some area residents still hold bitter memories of what came after the economic boom driven by the 1975 Okinawa Ocean Expo. The expo was held three years after Okinawa's return to Japan as part of the central government's First Okinawa Promotion and Development Plan. Today, the aquarium stands on the expo's former grounds. Yasukichi Miyagi, 81, a mango farmer in Nakijin near Junglia, owned a construction business at the time. He worked as a subcontractor for a company outside the prefecture while the expo venue, roads and other facilities were being built. This work required he purchase a small fleet of heavy machinery and hire enough people to fill orders. But the number of expo visitors fell short of the expected 4.5 million during its half-year run, and many companies that made major investments went bankrupt. Miyagi's firm escaped bankruptcy but he had to cut staff and equipment to barely break even. Since then, the village's population has decreased by about 40 percent from approximately 15,000 in 1950. Although Miyagi has a sense of crisis that the village could eventually disappear, Junglia is something positive to talk about. That said, it remains uncertain how the large-scale tourism project will affect the community and if those in charge can prevent history from repeating itself. "I wonder if it will really work," he mumbled. 'INEVITABLE CHALLENGE' REMAINS According to Moritake Tomikawa, a former vice governor of Okinawa Prefecture who is now a professor emeritus of economics at Okinawa International University, the addition of Junglia could be a way to solve problems such as depopulation and low-income levels. This applies not just in comparing the prefecture to the mainland, but the island's regions where the north lags economically behind the south. Despite the potential windfall, making the prefecture's economy solely dependent on tourism is still an unstable venture because it is easily influenced by external factors—the COVID-19 pandemic being the most devastating example. The prefectural government previously promoted manufacturing without much success and Okinawa's industrial structure remains weak. "As we move forward to achieving Okinawa's economic independence, it is an inevitable challenge to develop another industry on par with tourism," Tomikawa said.
Kyodo News
4 hours ago
- Kyodo News
Ishiba, Trump to meet on G7 fringes: Japan PM
KYODO NEWS - 19 hours ago - 09:29 | All, Japan, World Japanese Prime Minister Shigeru Ishiba said Friday that he agreed with U.S. President Donald Trump to meet in Canada on the sidelines of the Group of Seven summit next week. Ahead of another round of ministerial-level tariff talks in the United States, Ishiba told reporters after a 20-minute phone call with Trump that Japan's stance of urging the administration to eliminate its higher tariffs on Japanese products remains unchanged. Ishiba also said he and Trump shared the view that peace and stability in the Middle East are important, following a spike in tensions after Israel's attack on Iran. "We confirmed that we will further deepen our discussions on bilateral cooperation when we meet next week on the occasion of the G7 (summit)," Ishiba said, adding that no specific date has been set. The two leaders agreed on the need to accelerate ministerial negotiations to reach "a deal that will be beneficial to both Japan and the United States," Ishiba said. The premier said the leaders did not discuss in their call the possibility of him visiting the United States prior to the G7 summit. Ishiba and Trump also held telephone conversations twice in late May. Japan's chief tariff negotiator Ryosei Akazawa, known as a close aide to Ishiba, is expected to hold talks with senior U.S. officials in Washington on Friday, ahead of the two-day G7 meeting from Monday in Canada's Kananaskis. Tokyo has been calling on Washington to reconsider its tariff policy targeting imports ranging from cars and auto parts to steel and aluminum. It was the third telephone conversation between Ishiba and Trump in roughly a month, with the previous one on May 29. Ishiba, meanwhile, said he extended birthday wishes to Trump during the phone call requested by Japan. The U.S. leader turns 79 on Saturday. Related coverage: Japan hopes for special treatment as Trump hints at auto tariff hike Trump says U.S. Steel controlled by him with "golden share" Japan PM hopes for progress in U.S. tariff talks, in no rush for deal
Nikkei Asia
9 hours ago
- Nikkei Asia
BOJ weighs slowing pace of tapering JGB purchases
TOKYO -- The Bank of Japan is considering slowing the pace of cuts in its government bond purchases from April 2026, as concerns grow over a rise in yields on superlong bonds. The central bank has reduced the pace of monthly Japanese government bond buying by 400 billion yen ($2.8 billion) every quarter since last summer in an effective shit to quantitative tightening. But in light of volatility in the bond market, the BOJ's policy board will discuss easing the pace of slowing to 200 billion yen per quarter.
