FANUC CORPORATION, Hitachi, Ltd. and Preferred Networks, Inc. Announce Agreement to Establish A Joint Venture Company on April 2, 2018; Yutaka Saito to Hold Concurrent Position as CEO of the New Company
January 31, 2018 at 01:44 pm
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FANUC CORPORATION, Hitachi, Ltd. and Preferred Networks, Inc. (PFN) announced that they have reached an agreement to establish a joint venture company on April 2, 2018, to develop Intelligent Edge Systems(1) that utilize artificial intelligence (AI) technologies in edge devices in the industrial and social infrastructure field. In this backdrop, FANUC, Hitachi, and PFN have agreed to undertake joint development of the world's most advanced Intelligent Edge Systems in the industrial and social infrastructure field, and to establish a joint venture company for that purpose. The new company will develop these Intelligent Edge Systems by combining FANUC's technologies and expertise in machine tools and robots, Hitachi's knowledge of control technologies and other aspects of OT and IT in the front lines of manufacturing, and PFN's deep learning and distributed computing technologies. After establishing a joint venture company, the three companies will test business potential and create business plans, and then undertake actual system development and expand application fields. Through the new company's activities, FANUC, Hitachi, and PFN will develop Intelligent Edge Systems and other next-generation control systems as part of efforts to promote collaborative creation aimed at the realization of Society 5.0(3). Intelligent Edge Systems: Systems that use AI as an intermediary between the Cloud and edge devices such as machine tools, industrial machinery, and robots to achieve cyclic, real-time control. A human-centered society that balances economic advancement with the resolution of social problems by a system that highly integrates cyberspace and physical space.
Yutaka Saito, who is currently Executive Vice President and Executive Officer at Hitachi, and who will be appointed Senior Executive Vice President at FANUC CORPORATION on April 1, 2018, will hold a concurrent position as CEO of the new company.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
FANUC CORPORATION, Hitachi, Ltd. and Preferred Networks, Inc. Announce Agreement to Establish A Joint Venture Company on April 2, 2018; Yutaka Saito to Hold Concurrent Position as CEO of the New Company