Happy new year to our valuable Customers, Partners, and Suppliers.

Now that the new year has begun and we are all back to our daily activities, I would like to share some thoughts with you all.

COVID-19

In Japan, we are fighting a resurgence of COVID-19 cases, around and among us, that requires to maintain in place adequate preventive measures. Yet, once the pandemic is eventually brought under control, we will have to contribute answering a question. Who will foot the bill of moving into a digital society, which is how our world kept functioning even during the darkest hours of the lockdowns? A society in which everything runs on digital technology, where paperless and electronic means are the norm, will be a great opportunity of growth for us too.

ESG & Environmental Initiative

COVID-19 pandemic is transforming how we think about our economies and our societies, thus engaging us in building a transition to a greener, more inclusive, and more resilient tomorrow. To address this challenge, this year we launched Advanet’s ESG-Initiative, to align Advanet’s activities to some non-financial factors more and more used to identify material risks and growth opportunities.

Along this line, Advanet will increase its efforts in many areas where we are already excelling. For example, in the reduction of CO2 emission, Advanet is scoring well below the limit that the Government of Japan imposed to itself, while some IoT systems that Advanet promotes, can help companies “live” their ESG values, at the same time promoting a better (and more cost-effective) user experience.

Worldwide tensions

The war in Ukraine and the tensions that see superpowers like United States of America and China confronting each other, are having implications, as well as generating growth opportunities for key markets like that of the electronic devices.

The immediate impact to us of the war is the sharp increase of the energy costs, which may hinder the stability of companies’ OPEX. As a matter of fact, Japan is reverting to nuclear energy as the country strives to meet a goal of net-zero emissions in 2050. Japan seeks to cut carbon emissions 46% from fiscal 2013 levels by fiscal 2030. Meeting this target would require restarting nearly 30 reactors. The Japanese government compiled then a new decarbonization policy, which would allow the rebuilding of aging reactors and extend their life spans beyond the current 60 years, asking many suppliers to share the effort of supplying components and parts.

The tensions between USA and China may force a total decoupling of the supply chain in the electronics components’ industry. We already see the signs in a market extremely volatile, with availability that has returned under control while prices seem prone to speculative dynamics not yet absorbed by the system. On top, a growing demand by national governments, including that of Japan, to ensure the stability of the entire supply chain, by reshoring productions that were previously outsourced to suppliers and vendors in foreign countries, poses a unique opportunity for many players to reposition themselves as national champions.

In conclusion

All in all, 2022 has been a record year for the whole electronic industry in the world, and Advanet too has performed nicely thanks to all its People and the valuable Customers, Partners, and Suppliers.

During challenging times like these, it is especially important for Advanet to keep our Customers, Partners, and Suppliers satisfied and at the same time strive for concrete and sustainable innovation. I would like to acknowledge the great efforts that we all put in working together towards the many goals that we achieved last year, with many more to come this year.

I wish you all and your families a great and fulfilling 2023.