 Current logo, which is a revision of 1968 logo, used since 1992 | |
 Headquarters inMarunouchi,Chiyoda, Tokyo | |
Native name | 株式会社日立製作所 |
|---|---|
Romanized name | Kabushikigaisha Hitachi Seisaku-sho lit. "Share Company Hitachi Manufacturing Plant" |
| Company type | Public |
| Industry | Conglomerate |
| Founded | 1910; 115 years ago (1910) Hitachi, Ibaraki, Japan |
| Founder | Namihei Odaira |
| Headquarters | , Japan |
Area served | Worldwide |
Key people | Toshiaki Higashihara [jp] (executive chairman) Keiji Kojima(businessman) [jp](president and CEO) |
| Products | |
| Services | Former |
| Revenue |  ¥10.264 trillion (2021)[3] |
| ¥738.2 billion (2021)[3] | |
| ¥583.2 billion (2021)[3] | |
| Total assets | ¥13.887 trillion (2021)[3] |
| Total equity | ¥4.341 trillion (2021)[3] |
Number of employees | 268,655(as of June 2024) |
| Website | hitachi.com |
Hitachi, Ltd.[nb 1] (Japanese pronunciation:[çi̥taꜜtɕi]) is a Japanesemultinationalconglomerate founded in 1910 and headquartered inChiyoda, Tokyo. The company is active in various industries, including digital systems, power andrenewable energy, railway systems,healthcare products, andfinancial systems.[4] The company was founded as an electrical machinery manufacturing subsidiary of the Kuhara Mining Plant inHitachi, Ibaraki by engineerNamihei Odaira in 1910. It started as an independent company under its current name in 1920.[5]
Hitachi is listed on theTokyo Stock Exchange and is a key component of theNikkei 225 and TOPIX Core30 indices. As of June 2024, it has a market capitalisation of 16.9 trillion yen, making it the fourth largest Japanese company by market value.[6] In terms of global recognition, Hitachi was ranked 38th in the 2012Fortune Global 500 and 129th in the 2012Forbes Global 2000.[7] Hitachi is a highly globalised conglomerate. In the fiscal year 2023, it generated approximately 61% of its total revenue of 9.7 trillion yen from international markets. The major contributors to this global revenue wereAsia,Europe, andNorth America, with each region accounting for 22%, 16%, and 16% of the total revenue, respectively.[8][9]
Hitachi mission is to 'contribute to society through the development of superior, original technology and products'.[10] All 12 CEOs the company has had, including founder Odaira, have engineering backgrounds, with eight of them, including Odaira, being alumni of theUniversity of Tokyo's Faculty of Engineering.[11]
Historically a large conglomerate active in various fields, includingelectric generators,consumer electronics,trains,semiconductors,computers, andnuclear reactors, Hitachi recorded a record loss of 787.3 billion yen in the aftermath of the2008 financial crisis. The company sold numerous unprofitable operations and ventured into new areas such as digital systems and renewable energy. As a result of these moves, Hitachi returned to profitability by March 2011.[12]
Today, Hitachi's corporate activities are organised into three large sections: Digital Systems and Services, Green Energy and Mobility, and Connective Industries.[13]
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Hitachi has been using a monogram of the two Kanji characters that make up the word 'Hitachi' (日立) as itscorporate symbol (monshō). Conceived by Namihei Odaira,[14] this symbol appeared on most of Hitachi's products until 1991. In 2000, Hitachi adopted theadvertising slogan 'Inspire the Next',[15] and the corporate logo was gradually phased out as this statement was incorporated into the branding. However, the symbol is still used to represent the company rather than its products or services, such as in the favicon of its official website.[16]
Since 1975, Hitachi has been using images of a 130-year-oldSamanea saman tree, known as the Hitachi Tree (hitachi no ki), located atMoanalua Gardens, Hawaii, in most of its television commercials as a symbol of the conglomerate. The advert song introduced alongside the tree is also calledHitachi no Ki, orKonoki Nanno Ki (lit. 'What tree is this?'), after the song's opening lyrics. Three other trees have briefly represented the company, but since 1984, the current tree has been designated as the Hitachi Tree.[17] In 2016, it was reported that the company spends around 50 million yen annually on its maintenance.[18]
Founded in 1910 in Ibaraki Prefecture by electrical engineer Namihei Odaira, Hitachi's first product was a 4-kilowatt induction motor, designed for copper mining.[19][20][21] Originally an in-house venture ofFusanosuke Kuhara's mining company, Hitachi became independent in 1911 and moved its headquarters to Tokyo in 1918. The company's name 'Hitachi', combining the kanji for 'sun' (日,hi) and 'rise' (立,tachi), was coined by Odaira.[22] While industrial machinery in Japan was usually powered by steam at the time, Odaira built water power stations in the mine and electrified almost all facilities in the factory. The company developed various electrical equipment later in its history. In 1924, Hitachi completed Japan's first mainline electric locomotive (JNR Class ED15). In 1932, the company started manufacturing elevators and electric refrigerators.[23]
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World War II and its aftermath significantly impacted Hitachi, leading to the destruction of factories, post-war internal discord, and the removal of founder Namihei Odaira by theAllied occupation forces. Hitachi went public in 1949, listing on theTokyo Exchange (TYO:6501). Odaira returned to the company in 1951 when thepurge of key pre-war Japanese figures ended. However, he died in October of the same year at age 77.
In 1949, Hitachi built its first power shovel, marking the start of what is nowHitachi Construction Machinery. In 1960, Hitachi developed the world's first electric train seat reservation system,MARS-1, forJapanese National Railways (JNR), allowing nationwide booking for express train seats.[24] Around the same time, Hitachi began expanding its business overseas, with the establishment of Hitachi America, Ltd. 1959. In 1961, Hitachi began selling fully-automated washing machines and completed its first experimental nuclear reactor.[25]
In 1964, the world's first high-speed railway line, theShinkansen, opened. Hitachi not only built theSeries 0 rolling stock but also played a crucial part in developing theAutomatic Train Control system (ATC) and theComputer-Aided Traffic Control System [ja] (COMTRAC). COMTRAC was the firstProgrammed Traffic Control [ja] (PTC) system, areal-timeautomaticcontrol system to control rail transport, which was installed on JNR'sTokaido Shinkansen andSanyo Shinkansen lines simultaneously with the extension fromShin-Osaka Station toOkayama Station in 1972.[26] In 1977, Hitachi completed the world's first fullyMOX-fuelled nuclear power station,Fugen. MOX was seen as an efficient way of utilisingplutonium from nuclear waste, which would otherwise have to be stored in security to ensure that it is not used to build nuclear weapons.
In 1978, Hitachi's Twin-Well Hi-CMOS process ushered in a new era in the globalsemiconductor industry. For instance, the Hitachi HM6147 chip, developed by a Hitachi team led by Toshiaki Masuhara, was able to match the Intel's flagship 2147 HMOS's performance with 87 per cent less power.[27] Until the early 1980s, American semiconductor producers were focusing on the development and production ofNMOS transistors, with which they dominated the global market, while Hitachi invested heavily in developing efficient CMOS transistors. This success led to the world's three largest manufacturers by revenue all being Japanese companies by 1987, amongst which Hitachi was counted.[28] Hitachi Europe, Ltd. was established in 1982.[29]
In 2001, the contactless fare card systemSuica was introduced at 424JR East stations throughout the Greater Tokyo Area. While the card itself was developed usingSony'sFeliCa system, Hitachi was responsible for building the server-side system.[30] Other contactless fare card systems such asICOCA andPASMO have been introduced throughout the country since, almost all of which are modelled after Suica and thus mutually compatible. It is now widely used as a contactless payment system in non-railway business as well, and Hitachi has been involved in the series of developments in this area.[31] At theCES 2007, Hitachi revealed the first consumer HDD with a storage of 1 TB,[32] which was released in the same year.[33]
In the 2008fiscal year, Hitachi lost US$7.8 billion, the largest corporate loss in Japanese history up to that point.[34] Since its zenith in the 1980s and 1990s, a number of departments had suffered a decline in efficiency. However, being one of the largest conglomerates in the world at the time, conflicts of interest existed across the company, making it difficult to implement fundamental solutions. These delays in essential reforms proved detrimental when facing the 2007–2008 financial crisis and led to the record loss.[35] This prompted Hitachi to restructure and sell a number of divisions and businesses under the leadership ofTakashi Kawamura.[36][37][38] From 2008 to 2018, Hitachi reduced the number of its listed group companies and consolidated subsidiaries in Japan from 22 to 4 and around 400 to 202, respectively, through restructuring and sell-offs. It plans to become a company specializing in IT and infrastructure maintenance in the near future.[39]
In March 2011, Hitachi agreed to sell itshard disk drive subsidiary,HGST, toWestern Digital for a combination of cash and shares worth US$4.3 billion.[40] Due to concerns of a duopoly of WD andSeagate Technology by the EU Commission and theFederal Trade Commission, Hitachi's 3.5" HDD division was sold toToshiba. The transaction was completed in March 2012.[41]
In January 2012, Hitachi announced it would stop producing televisions in Japan.[42] In September 2012, Hitachi announced that it had invented a long-term data solution out ofquartz glass that was capable of preserving information for millions of years.[43] In October 2012, Hitachi agreed to acquire the United Kingdom-based nuclear energy companyHorizon Nuclear Power, which plans to construct up to six nuclear power plants in the UK, fromE.ON andRWE for £700 million.[44][45] In November 2012, Hitachi andMitsubishi Heavy Industries agreed to merge their thermal power generation businesses into a joint venture to be owned 65% by Mitsubishi Heavy Industries and 35% by Hitachi.[46][47] The joint venture named Mitsubishi Hitachi Power Systems (MHPS) began operations in February 2014.[48] In 2020 Hitachi transferred its share of the venture to MHI.[49]
In October 2015, Hitachi completed a deal withJohnson Controls to form a joint venture that would take over Hitachi's HVAC business. Hitachi maintained a 40% stake in the resulting company, Johnson Controls-Hitachi Air Conditioning.[50] In May 2016, Hitachi announced it was investing $2.8 billion into itsIoT interests.[51]Hitachi’s rail business in Europe, especially in the United Kingdom, expanded in the 2010s, withHitachi Newton Aycliffe starting operations in October 2015.
Following theFukushima Daiichi nuclear disaster in 2011 and the extended temporary closure of most Japanese nuclear plants, Hitachi's nuclear business became unprofitable and in 2016 Hitachi CEO Toshiaki Higashihara argued Japan should consider a merger of the various competing nuclear businesses.[52] Hitachi is taking for 2016 an estimated ¥65 billion write-off in value of aSILEX technology laseruranium enrichment joint venture withGeneral Electric.[53][54]
In February 2017, Hitachi andHonda announced a partnership to develop, produce and sell motors for electric vehicles.[55] Also in 2017, private equity firmKKR bought Hitachi Kokusai's (itself a subsidiary of Hitachi) semiconductor equipment division, becomingKokusai Electric. In 2019,Applied Materials announced that it would acquire Kokusai Electric from KKR for US$2.2 billion.[56][57] The deal was later terminated in 2021.[58] In 2017, KKR also bought Hitachi's power tools subsidiary Hitachi Koki for US$1.3 billion, changing its name to Koki Holdings (HiKOKI) and marketing its tools as Metabo HPT in the US market.[59][60] In 2018, Hitachi stopped selling televisions in Japan because its market share had dropped to 1%, opting to sell Sony TVs through its existing dealer network.[61] On March 14, 2018,Zoomdata announced its partnership with Hitachi INS Software to help develop big data analytics market in Japan.[62]
In December 2018, Hitachi Ltd. announced it would take over 80% ofABB's power grid division for $6.4 billion[63] renaming it Hitachi-ABB Power Grids in the process.[64] In October 2021, the enterprise was rebrandedHitachi Energy.[65] In 2019, Hitachi sold its medical imaging business toFujifilm for US$1.7 billion.Showa Denko boughtHitachi Chemical from Hitachi and other shareholders, at US$42.97 per share. Until then, Hitachi Chemical had been considered to be a core unit of the group.[66][67][68][69][70] Hitachi also suspended theABWR development by its British subsidiaryHorizon Nuclear Power as it did not provide adequate "economic rationality as a private enterprise" to proceed.[71] In October 2019, the talks betweenHonda and Hitachi to consolidate their four automotive parts businesses,Showa,Nissin andKeihin of the former and the latter's Hitachi Automotive Systems, have reportedly begun, resulting in the creation of a "mega supplier" named Hitachi Astemo incorporated in January 2021.[72][73][74]
In March 2020, an improved version of theL0 SeriesSCMaglev rolling stock for theChuo Shinkansen was introduced, marking the firstmagnetically levitated train manufactured by Hitachi.[75] In September 2020, Hitachi abandoned plans to create nuclear power plants in Gloucestershire and Wales due to issues with funding due to the impact ofCOVID-19.[76][77] In the same month, Hitachi Capital agreed to be bought by its second-largest shareholder, business partner, and former rivalMitsubishi UFJ Lease, which invested in the Hitachi subsidiary in 2016.[78] In November 2020, it announced that Hitachi Metals andHitachi Construction Machinery, both being some of the last remaining listed subsidiaries, will likely be detached from the group according to the restructuring plan.[79] In December, Hitachi sold a 60% stake in its overseas home appliance business to TurkishArcelik for US$300 million.[80] In December 2021, it was announced by OPG that they had selected GE-Hitachi to construct two BWRX-300 reactors at the Darlington site in Ontario, Canada. OPG and GE-Hitachi will be collaborating on the design, planning and preparation of license materials for the construction of Canada's first SMR which is planned to enter operation in 2028.[81]
Hitachi, with its focus on energy, information technology, and infrastructure, has seen a significant improvement in profitability since the record loss in 2009. Reflecting this, Hitachi’s market capitalisation has more than octupled since 2010, becoming the fourth largest company in Japan by market capitalisation in June 2024.[6]
Hitachi's corporate activities are organised into three large sections: Digital Systems and Services, Green Energy and Mobility, and Connective Industries.
The Digital Systems and Services segment features Lumada, through which the company provides digital solutions to improve business processes and operational efficiency. This segment accounted for 21.9 percent of the total revenue in FY2022.[82]
Hitachi Vantara is a wholly owned subsidiary of Hitachi which provides hardware, software and services to help companies manage their digital data. Its flagship products are theVirtual Storage Platform (for enterprise storage), Hitachi Unified Storage VM for large-sized companies, Hitachi Unified Storage for small and mid-sized companies, Hitachi Content Platform (archiving and cloud architecture), Hitachi Command Suite (for storage management), Hitachi TrueCopy and Hitachi Universal Replicator (for remote replication), and the Hitachi NAS Platform.[87]
Since September 19, 2017, Hitachi Data Systems (HDS) has become part of Hitachi Vantara, a new company that unifies the operations ofPentaho, Hitachi Data Systems and Hitachi Insight Group. The company name "Hitachi Data Systems" (HDS) and its logo is no longer used in the market.Hitachi Consulting, the group's international management and technology consulting subsidiary with headquarters in Dallas, Texas, was integrated with Hitachi Vantara in 2019.[88] On November 1, 2023, Hitachi spun off Hitachi Vantara LLC's digital solutions business into a new company, Hitachi Digital Services; Hitachi Vantara now focuses on its storage and hybrid cloud-centric data infrastructure services portfolio.[89]
GlobalLogic is a digital services subsidiary of Hitachi based in the United States. Originally founded in India in 2000, the company was acquired by Hitachi in 2021 for US$9.6 billion.[90] The acquisition is intended to bridge various operational technology and industrial products that Hitachi offers by strengthening the group's software development capability as part of the broader Lumada strategy.[91]
The Green Energy and Mobility segment focuses on developing and providing power systems. This includes power generation, transmission, and distribution systems. In the rail industry, the company is a provider ofrolling stock and traction equipment to signaling, traffic management systems, and maintenance depots. A key component of this segment is the ZeroCarbon suite, designed to enable fleet operators to transition to electric vehicles. This segment accounted for 22.9 per cent of the total revenue in FY2022.[92][82]
Hitachi built its first steam locomotive in 1920, and has since evolved into a company that builds almost everything related to rail transport; rolling stock, traction systems, power transmission systems, signalling systems, programmed traffic control systems and seat reservation systems.[93]
Hitachi's rail division has two hubs in Japan, Mito in Ibaraki and Kasado inKudamatsu, Yamaguchi. The international rail business, branded asHitachi Rail, is headquartered in London, England, withits main European factory located inNewton Aycliffe, County Durham. SinceHitachi Rail Italy was established following the acquisition of AnsaldoBreda S.p.A., Hitachi has a design and production hub inPistoia, Italy.[93]
In July 2020, Hitachi acquired 80.1% of ABB’s power grid business for 740 billion yen (US$68.5 billion) and completed the acquisition with the remaining 19.9% in December 2022.[94] Merged with Hitachi’s own power grid operations, the entity has become a major supplier ofhigh-voltage direct current transmission systems.[95]
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Hitachi has been involved in the nuclear power industry since the 1950s and has been active in constructing and maintainingboiling water reactors (BWRs) since the 1970s.
In 2007, Hitachi's nuclear business merged with that ofGeneral Electric to form GE Hitachi Nuclear Energy. The joint venture currently offers theadvanced boiling water reactor (ABWR) and is developingsmall modular reactors (SMRs), such as theBWRX-300.[96]
Hitachi also ownsHorizon Nuclear Power, which was originally expected to construct nuclear power stations in the United Kingdom under a British government contract, but later withdrew from these projects after investing nearly £2 billion.[97]
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In the Connective Industries segment, Hitachi offers building systems such as elevators and escalators, healthcare with a focus on less invasive cancer treatments and diverse medical equipment, and a variety of industrial equipment such as air compressors and transformers. Additionally, the segment provides sustainable water and wastewater management. This segment accounted for 27.3 per cent of the total revenue in FY2022.[82][98]
Although no longer a core business, Hitachi Global Life Solutions produces refrigerators, laundry machines, vacuum cleaners and other white goods. Hitachi stopped producing televisions (branded as 'Wooo') in 2012.[99]
Hitachi Building Systems is the second largest manufacturer of elevators in Japan.[100]
Hitachi Astemo, which stands for "Advanced Sustainable Technologies for Mobility", is a 40-40-20 joint venture between Hitachi,Honda, and JIC Capital, which is owned byJapan Investment Corporation.[104] Hitachi and Honda their four auto parts affiliates and division, the latter's threekeiretsu companiesShowa Corporation,Keihin Corporation, andNissin Kogyo, and the former's wholly owned Hitachi Automotive Systems, to be better equipped for the changing car market environment, frequently represented as CASE, for which they will integrate their assets to accelerate development of new technology and software.
Hitachi Astemo is considered a "mega supplier", as annual sales of the four predecessors combined stood at $17 billion, placing it as the second largest among the compatriot auto suppliers.[73][105]
Hitachi Construction Machinery is one of the world's largest construction equipment manufacturers by revenue. The company was spun off from Hitachi in October 1970 and has been listed on the Tokyo Stock Exchange on its own since 1981. Hitachi owned a 51% share in the company but sold half of its shares to HCIJ Holdings, a joint venture betweenItochu andJapan Industrial Partners, in August 2022, leaving Hitachi with 25.4% of the total shares.[106]
Bought byMitsubishi, it had been the group's financial business arm.[78]
Among other things, Hitachi Metals supplied materials for aircraft engines and fuselage components (e.g. landing gear), along with finished components for same and other aerospace applications. It also provided materials, components and tools for the automotive and electronics industries. Among the Hitachi Metals facilities was Hitachi Metal Yasugi Works or Tatara Works, one of the oldest furnaces in Japan, famously featured as a main backdrop inPrincess Mononoke, a Japanese animation film set in theMuromachi period. Hitachi sold all its shares in Hitachi Metals in 2021, and the company was renamedProterial [ja] in 2023.[107]
Spin-off entities from Hitachi Works includeHitachi Cable (1956) and Hitachi Canadian Industries Limited (founded 1988 inSaskatoon and closed in 2016 as Mitsubishi-Hitachi Power Systems).[108]
As Hitachi pulled out of MHPS and handed over the control toMHI, Hitachi Works was also transferred, becoming part of Mitsubishi Power.[109]
Other former businesses Hitachi had had include the following:
Hitachi has research partnerships with several universities, and funds research centres within these universities. Hitachi-UTokyo Lab., which is a joint research centre with theFaculty of Engineering,University of Tokyo, focuses on the realisation of data-driven and more efficient society (Former Chairman and UTokyo alumnusHiroaki Nakanishi coined the termSociety 5.0 for this).[121][122] Hitachi Cambridge Laboratory (HCL), a Hitachi-funded research centre within theUniversity of Cambridge founded in 1985, now focuses onquantum computation andmagnetism.[123] Hitachi conducts similar initiatives withKyoto University,Hokkaido University andNational Institute of Advanced Industrial Science and Technology as well.[124]
{{cite book}}: CS1 maint: others (link){{cite web}}: CS1 maint: numeric names: authors list (link){{cite news}}: CS1 maint: multiple names: authors list (link){{cite web}}: CS1 maint: numeric names: authors list (link)Hitachi has stopped building its own mainframes but will supply IBM z Systems loaded with Hitachi VOS3 operating system software.
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