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Global Image Processing Technologies

Interview - February 1, 2025

VS Technology is a manufacturer specializing in machine vision lenses, lighting, and image processing, bringing valued image technologies to the global market.

KAZUARI IWATA, PRESIDENT OF VS TECHNOLOGY CORPORATION
KAZUARI IWATA | PRESIDENT OF VS TECHNOLOGY CORPORATION

Now is a pivotal time for Japanese makers, with policies like the United States Inflation Reduction Act forcing companies to diversify their supply chains for reliability and to reduce country risks with nations such as China. Japan is known for its reliability in advanced technology, and thanks to the weakened yen, the “Made in Japan” brand has never been so cost-effective, meaning that Japan has an opportunity to expand its existing global market share. Do you agree with this sentiment, and what are the advantages of Japanese companies in this current macro environment?

As you say, the yen's depreciation presents a great opportunity for Japanese exporters. Although VS Technology's headquarters are in Japan, we are a global company with multiple overseas production bases in China, Taiwan, Thailand, and other places. Since we’ve already established this global network, the yen depreciation won’t have much impact on our business.

 

Speaking of those production bases, places like Taiwan and Thailand have varying levels of expertise and equipment, which can adversely affect the final product during the manufacturing process. How can you manage the consistency of product quality across your international network?

We build the same facility for our overseas production bases and maintain the same high inspection standards. We also dispatch Japanese engineers to each location to train the local engineers, which is up to the Japanese monozukuri standard. Maintaining this high-quality standard is critical in our overseas production bases as well.

By having an active personnel exchange between our overseas and Japanese factories, we ensure a good understanding of the requirements of Japanese quality. Sometimes, the local factories are even more attentive to quality than the Japanese factories.

We also have outsourcing within Japan, Bangladesh, and other countries. For that, we use the same inspection equipment and make sure everything is up to our standards.

 

We have seen how Japan competes with regional competitors in China, Korea, and Taiwan. What makes Japanese companies or products different from your regional competitors?

Lens manufacturing technology is not something that can be easily replicated. The know-how can be applied and copied in production, but the uniqueness that we have is the ability to propose the most appropriate type of lens to use for specific purposes. By talking with our customers and seeing their needs, our strength is being able to recommend and create the best custom-made lenses for the designated purposes. Something else that differentiates us from other companies is we are the only company in the industry that can provide a comprehensive solution. Usually, companies have one specific type of lens, like a telecentric lens or a single focal lens. Still, we have a wide variety of lenses that we can use to cater to the needs of our customers. We also provide lighting and image analysis software, so this integration of diverse product solutions is the strength that we have.

 

You cater to a variety of industries. Is there a particular industry you’re focusing on, or are there any new industries you would like to target?

Our business strategy is to focus on all industry segments. Currently, 50% of our sales come from the semiconductor industry, particularly semiconductor machinery parts, and the other 50% comes from a diverse range of industries. We see massive business growth related to environmental and sustainable development goals (SDG). For example, In the field of food production, tasks that previously relied on human experience and intuition are now enhanced using sensors and cameras. These technologies enable precise resource allocation, reduce waste, and promote environmental sustainability. Additionally, by visualizing conditions at production sites, it becomes possible to implement optimal measures, contributing to the establishment of sustainable food supply systems. Such initiatives represent one of the key growth areas for the future.

 

One product you offer, part of the telecentric lens line, is the VS-TLS (FR) series. This is a new concept lens that can fit various optical magnifications required by customers. It is done by dividing the front lens and the rear lens into two separate parts and then multiplying them. It received the prestigious Platinum Award from the Vision Systems Design 2024 Innovators Awards Program. Can you tell us why you developed this lens series and what market need you identified?

We developed this telecentric lens because there’s a growing demand for the semiconductor electric parts and components manufacturing industry in the automated optical inspection (AOI) process. In particular, there has been a demand for inspecting more significant objectives, and the lens needs to be bigger than the size of the object, so the lens got bigger and bigger. At the same time, with the demand for miniaturization, there’s been a demand for a smaller and finer inspection with higher resolutions. To meet these different needs, we have developed this TLS (FR) lens, which can cater to different needs by changing part of the lens. Conventionally, the operator must replace the lens completely, and sometimes the lens is big and heavy, and it’s not cost-effective to replace it every time. Doing so also consumes too much time, leading to

production downtime. With this new type of lens, having front and rear parts, you can replace the part needed to meet the object requirement. That is also environmentally friendly and cost-efficient for our customers.


VS-TLS(FR) lens series


Does this product also have applications outside of the semiconductor industry?

This product is already being used in many industries. One application is in the automotive industry, where they inspect larger objects. I have heard that these technologies are being utilized in inspection processes for various applications, including food-related industries, in the US.

 

You also make lenses for high-speed cameras, which must meet specific criteria to function effectively at high frame rates while maintaining high resolutions and reducing optical distortion. However, certain environmental factors, such as extreme temperatures, humidity, dust, chemical exposure, or even mechanical vibrations, can affect the performance and longevity of these lenses. How can you adapt your products to suit these environmental factors and maintain optimal performance?

We have a wide range of standardized products that serve versatile purposes. Still, for customers that will operate under specific environmental conditions, we work together with our customers to provide custom products. Our company philosophy is to provide the best suited products for a customer’s specific usage, so we listen to their needs and the conditions that the lens must operate under. We then design the lens and the housing to cater to that environment. For example, for high-heat environments, we have heat simulation software and a heat testing device. We also have vibration and other testing devices to help prove our designs. Working with customers with diverse needs helps us accumulate the know-how to provide the best solution to each customer.


Machine Vision Lens Lineup


Another way of accumulating know-how and finding out what the market demands are is through events and exhibitions. You’ll be taking part and exhibiting in a couple of events in the coming days in June,2024. You’ve got SEMI-e Shenzhen in China and NEPCOM in Thailand. What are you planning to showcase at these events, and what are your expectations of them?

We determine the market trend for each region or locality and what kind of exhibition we will attend and showcase the most appropriate products based on that. Therefore, we don’t have a standard set of products that we showcase across the globe. This year, we are highlighting TLS (FR) across the exhibitions.

 

You have a vast network, but each market has specific needs. Are you looking towards local partnerships to find these needs or further penetrate these markets?

Our overseas strategy is to have sales and contact bases globally in every region. We have partnerships with local sales agents, but our business relies on us talking directly with our customers regardless of the initial touch point. To provide the best product, we have to comprehend the usage requirements fully. We can then provide the best option based on our know-how.

Usually, when Japanese Nikkei companies go overseas, they work mainly with other Nikkei companies. Still, our strategy is completely different because our overseas customers are mainly local companies with diverse usage needs. What’s interesting is that with our different contact points across the globe, we can receive orders from local companies with specific usage requirements, and we can take this information back to our headquarters to find commonalities we might apply to other industries. This accumulation of know-how through our overseas sales and operation bases is very important in our company’s growth.

Flexibility is another keyword we have, so hiring locals, being flexible in meeting the local market needs, and understanding the local environment are essential aspects of our business model.

 

As a company with such a robust global network presence, which countries or regions do you believe have the most growth potential for your company, or which ones are you looking to penetrate further?

In recent years, we’ve been focusing on the US and Europe. Still, the upcoming focus is on Southeast Asia, which has a growing semiconductor industry so we will be strengthening our operations in Southeast Asia.

 

Your company is celebrating its 27th anniversary. As a relatively young company, let’s imagine we will return three years from now, on your 30th anniversary, and have this interview again. What would you tell us? What are your goals for those next three years, and how would you like your company to be seen by the global market?

We are in the process of listing our company on the stock exchange market, so in three years, we want to be recognized as a secure and credible company. I want to lead the company in a way that whenever there is an issue or trouble related to machine vision-related matters, VS Technology would likely be chosen as the company to go to for all solutions that are required for these customers.

I also want to add that we consider ourselves not only a manufacturer of products. We have our original lens designs, customized products, software, and lighting devices, but these products are only tools for our company. The strength of our company lies in our employees, who take active steps to satisfy the needs of our customers and provide them with the best solutions.


For more information, visit their website at: https://vst.co.jp/en/

 

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