Earlier this year Japan moved to strengthen its domestic semiconductor production and agreed to fund capital investments related to a variety of semiconductors in exchange for guaranteed production by companies for 10 years. The move could be the start of a new era for Japan's tech scene which has spent decades in a slumber - despite being behind some of the best-known technology brands in years gone by.
"Japan has always been a leader in the [tech space]. But Japan missed the semiconductor race. There is a good chance for change now. The Japanese government is giving a lot of incentives and subsidies in this space too, of almost from 30-50% [in this space] to set up factories," says Goldman Sachs Asset Management's Akanksha Ganju, speaking on Investment Talks, Japan.
Alongside semiconductors, Ganju believes IT software consultancies, and IT services and enterprise resourcing companies could help propel the sector to new highs in the coming year.
These companies are also much less known yet boast a high market share alongside attractive valuations which make them an interesting option for investors today.
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