Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

REPORTER: Toshiba, which has incurred massive losses on its U.S. subsidiary Westinghouse Electric Company LLC, is facing the third deadline for the release of its financial results for the April-December period of 2016, after two postponements. It has been stated in reports by the press that Toshiba's financial results will be released despite the auditor being unable to form an opinion of the results. Can you please share the Government's understanding and perception of the current situation?

CHIEF CABINET SECRETARY SUGA: I am aware that there are various reports regarding Toshiba's release of its financial results, which is planned for today. However, I would like to refrain from making any comment on the management of a publicly listed company. In any event, I believe Toshiba should work so it can release appropriate information to the market.

REPORTER: I have a related question. Regarding the sale of Toshiba's semiconductor business, various plans have been envisioned such as having Japanese enterprises form a consortium to provide investment. Please share your evaluation on this, and whether it is possible the Government will provide support for the plan through the Industrial Revitalization Corporation of Japan (IRCJ) or other governmental organizations.

CHIEF CABINET SECRETARY SUGA: Firstly, I am aware of the press reports regarding the movement to form a Japanese enterprise consortium in response to the planned sale of Toshiba's subsidiary semiconductor business. However, as this relates to the management of publicly listed companies, I would like to refrain from making any comment. Furthermore, regarding the point on the IRCJ, in general the Innovation Network Corporation of Japan (INCJ) is an organization which supports initiatives that will lead to innovation in Japan's industrial framework through open innovation. If the initiative is in line with this goal, I believe it is possible that support could be provided as part of the INCJ system.

REPORTER: I have another question related to Toshiba. In regard to the sale of Toshiba's semiconductor business, there are reports that Hon Hai Precision Industry of Taiwan has made a bid of up to three trillion yen. However, there are concerns that if the business is bought by a foreign firm, this will lead to the outflow from Japan of technologies such as flash memory. What are your thoughts on this point?

CHIEF CABINET SECRETARY SUGA: Firstly, the Government recognizes that Toshiba possesses critical technologies in semiconductors and other areas, and is watching developments closely. Furthermore, while I wish to refrain from making comments on specific matters, in general the pre-notification system with examination of the Foreign Exchange and Foreign Trade Act would be applicable, and I believe a strict examination would be carried out with a focus on national security and other matters.

REPORTER: Based on the results of that examination, will the measures of the Foreign Exchange and Foreign Trade Act be sufficiently worth considering?

CHIEF CABINET SECRETARY SUGA: I would like to refrain from making a statement on specific, concrete matters. What I have just stated is nothing more than the prevailing general view of this issue.

 (Abridged)