NTT cooperates with Fujitsu to expand the effectiveness of 6G business opportunities

Expand business opportunities through an open strategy

NTT announced on the 26th that it will strengthen cooperation with Fujitsu in order to promote the concept of "IOWN (Aion)" for the foundation of next-generation optical communications. In the global communications infrastructure market, Chinese enterprises and other companies hold more than half of the share. NTT and Fujitsu will accelerate an open strategy that is not bound by specific manufacturers' machines, with the goal of expanding business opportunities in sixth-generation communications (6G). Whether this cooperation will enhance the sense of existence of Japanese power, the effectiveness will be questioned. (editorial members Hirowa Saito, Tomoshi Saito)

"Optoelectronic Fusion" is eager to develop equipment, which will be available next year.

At an online press conference on the 26th, Jun Sawada, president of NTT, and Takahito Shida, president of Fujitsu, stressed the idea of strengthening cooperation to speed up the development of "optoelectronic integration" technology. Optoelectronic fusion is the core technology of IOWN, which introduces optical communication into the wiring part of semiconductor chip to achieve low power consumption and high-speed operation.

It is planned to start providing optoelectronic fusion equipment commercially within 2022.

The two companies have been working together to promote the "IOWN Global Forum" of IOWN's international community. However, President NTT of Sawada judged that "in order to make products together, it is necessary to promote individual cooperation with semiconductors as the import." Make up your mind to cooperate in capital business between subsidiaries. On the future, he said: "I think [the relationship between NTT and Fujitsu] will become comprehensive."

For Fujitsu, the cooperation with NTT may be related to the growth of the company's overseas business. President Shida said: "to expand business on a global scale, openness is the most important." Holding down the market exclusively is not acceptable to the society, and it is very difficult for our company to initiate technological innovation. For the future, "if necessary, we will work with various global companies." I'm not going to form an exclusive team. "

The "openness" of communications equipment will also become a means to "fight against the power of vertical integration" (NTT president of Sawada), like Huawei, using its own equipment to seek siege from communication operators. Much attention has been paid to whether optoelectronic fusion can accelerate it.

International Competition, lagging behind NTT, Japan's Axis

"Japanese companies are in a serious situation. While reflecting on things that should be reflected, we should improve the government and the people, and strive to strengthen the international competitiveness of the whole of Japan. Minister of General Affairs Ryotai Takeda said at a press conference after the cabinet meeting on the 20th.

At the Japan-US summit on the 16th, the two sides confirmed the promotion of an open fifth-generation communications (5G) network between the two countries. The background is the oligopoly of the communications infrastructure market. In 18 years, the global market share of base stations was about 80% in China's Huawei Technology (Huawei), Sweden's Ericsson and Finland's Nokia, while Japanese communications equipment manufacturers lagged behind in international competition.

If this situation continues, NTT will not only increase procurement risks, but also worry that competition will stagnate and technological innovation cannot be carried out. Therefore, the company takes its NTT DoCoMo as the center to promote the "O-RAN alliance" with the goal of opening and high-end wireless networks. After 20 years, NTT decided to cooperate with NEC in capital business, and one of this goal is the exhibition and sale of Japanese power's O-RAN products.

In addition, from the perspective of security, Japan and the United States have been essentially excluding Huawei products. The US has proposed the idea of protecting its communications infrastructure from "5G clean networks" by companies thought to be linked to the Chinese government, while Japanese companies such as NTT and KDDI have also been identified as "clean operators". Even after the Biden regime in the United States, the antagonism between the United States and China shows no sign of reining in, and for Japanese enterprises, it can also be said to be a good opportunity to cooperate with the United States to improve their sense of existence.

However, the already commercial 5G is very difficult to make a comeback, and 6G has a lot of room for a showdown. In this sense, NTT expects that the practical IOWN in 30 years or so can become a weapon. Spread IOWN, quickly process large amounts of data, and solve complex problems such as the complexity of city management and autopilot. The strengthening of cooperation between NTT and Fujitsu tests whether this trend can be accelerated.

Loose "good relationship" Fujitsu, go to the back 5G

Fujitsu entrusted the management of Fujitsu to the NTT Group by transferring 2/3 of its subsidiary Fujitsu Advanced Technologies (FATEC, Kawasaki City), which has a track record in semiconductor installation technology. The transferor is not the NTT ontology, but a subsidiary of NTT, which is a slow cooperation as a capital relationship. However, it is of great strategic significance. Although it is a "distant relative", it can also be said to be a "good relationship" of a ferry.

In the strategic partnership around the position 5G represented by IOWN, NTT and NEC took the lead, with NTT taking 5 per cent of the issued shares of NEC as a joint development commitment. The major context of the Fujitsu-NTT cooperation is also similar to that of "NTT-NEC".

Like NEC, Fujitsu is a communications equipment manufacturer responsible for the development and manufacture of 5G wireless base stations. Taking this cooperation as an opportunity, not only the base station, but also the key "optoelectronic fusion technology" of IOWN, including semiconductors as the basis of technology, can strengthen the relationship with NTT Group.

Fujitsu was originally very strong in optical transmission technology, through this cooperation with NTT Group to strengthen, including the semiconductor level, in optical communications and other aspects to expand the road to the next generation.

FATEC has been restarted at NTT Group since June as a "NTT electronic crossover topology". Semiconductors using optoelectronic fusion technology will be expanded to a variety of uses, with the goal of achieving low-energy, high-efficiency information and communication technology (ICT) systems.

Through the business structure reform in recent years, Fujitsu has removed the personal computer, mobile phone and other hardware business from the connection, and carried out the group reorganization. In the semiconductor business, the manufacturing department of the pill is also separate from the connection. But this time, unlike such group restructuring, in terms of chess, it can be said to be a wonderful way to cut down important pieces and open up a new way out.

Daily Industry News April 27, 2021