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Japan Has Potential To Become Preferred Provider of Best of Breed Technology To Western Technology Leaders.

|Includes: Sharp Corp. ADR (SHCAY)

If you were the head of Intel, or GOOG, or Amazon and not only aware of, but watching daily, the ongoing trouble between Samsung and Apple notwithstanding the Geopolitical risk in the area, you might want to implement a plan while the two biggest mobile device players have their 'eyes off the ball' and on each other.

You might want to tie up some much sought after supply of critical parts from cutting edge IP suppliers as those suppliers are caught between these two giants in a battle for the latest technologies.

You saw this kind of potential 'tie up' when one of these co's made a contract for SSD drives that took a majority of supply off the market for others, and it literally bought time for market expansion. This kind of exclusivity should not be underestimated especially for co's that rely on others to manufacture their products. The supply chain is critical for high volume companies and increasingly we're seeing delays in the production of new products based on competitive/geopolitical risk in supply(IP and Parts) AND production front (Foxconn is one example).

You have seen this recently related to Aluminum, In Cell Screen production, and potentially other parts as we have companies like Samsung and LG that are providing key components and assembly to their top competitors. S. Korea and Taiwan suppliers may become less attractive as sources of production and supply especially as western companies seek labor stability and supply diversification. Japanese tech suppliers and production should be considered as long term investments. Especially as European and American co's look to move to more advanced screens, batteries and chips for their products.

The risk of affiliation with production companies like Foxconn increases daily. A company that builds products for many western tech. co's with more than a million workers in an environment that can be, and currently is, tumultuous.

With Japan you have stability and industry leading IP with long term value, and a country that will end up leading the world away from nuclear energy toward more safe and renewable sources of energy. Their adjustment period is difficult right now, and clouds the view, nevertheless it seems that Japan will become a preferred supplier of Western tech giants. I own Japanese co's based on this long term view.