TOKYO — Japan’s technology resurgence has hit a wall, with a national icon facing determined pushback from its government over how best to lead the country into an uncertain future. SoftBank Group Corp. consistently ranks as the world’s most prolific investor in startups, a venture capital titan whose visionary founder and chief executive, Masayoshi Son, has made it a beacon of national pride and technological prowess. But as SoftBank has grown, so has resistance to Mr. Son’s ambitions and his freewheeling style. Earlier this year, the company was forced to sell its prized asset, chip designer Arm Ltd., to please regulators in Britain and gain approval for its latest technology acquisition. Then the Japanese government effectively blocked SoftBank’s proposed initial public offering of Arm, a deal that would have netted the company about $50 billion and given it a war chest to continue investing. The escalating tensions highlight a broader clash in Japan between a generation of aging power brokers who prefer a cautious, consensus-driven approach and a new crop of entrepreneurs and investors who are demanding a freer hand to reshape the nation’s economy. The outcome of this battle will help determine how Japan navigates an increasingly treacherous global landscape, with an aging population, slowing economic growth and relentless pressure from more dynamic rivals like China and South Korea. Some analysts argue that Japan needs to embrace the kind of disruptive innovation that SoftBank represents if it wants to maintain its status as a major economic and technological power. Others warn that the country needs to strike a balance between innovation and stability, and that SoftBank’s aggressive approach could lead to excessive risk-taking and financial instability. Mr. Son, 65, is a charismatic figure who has long been hailed as a visionary in Japan. He founded SoftBank in 1981 as a software distributor and quickly grew it into a telecommunications giant. In recent years, he has pivoted the company toward investing in startups, with a particular focus on artificial intelligence, robotics and other emerging technologies. SoftBank’s portfolio includes stakes in some of the world’s most successful tech companies, such as Alibaba Group Holding Ltd., Uber Technologies Inc. and WeWork Cos. Mr. Son has also been an outspoken advocate for Japan’s technological development and has called for the country to invest more in research and innovation. But SoftBank’s aggressive investment strategy has also raised concerns among some Japanese officials and business leaders. They worry that the company is taking on too much debt and that its investments are too risky. This wariness has been compounded by the recent performance of SoftBank’s Vision Fund, which has lost billions of dollars on some of its investments. In the face of this resistance, Mr. Son has begun to modify his approach. He has slowed down the pace of SoftBank’s investments and has said that he is more focused on profitability than growth. He has also hired a new chief financial officer with a background in risk management. These changes have helped to improve SoftBank’s relationship with the Japanese government and investors. But it remains to be seen whether Mr. Son will be able to fully realize his ambitions for SoftBank and Japan. The outcome of this battle will have a profound impact on the future of Japan’s technology industry and its economy as a whole. If Mr. Son succeeds, Japan could become a global leader in innovation. But if he fails, Japan could fall behind its rivals and struggle to maintain its economic competitiveness..
Japan’s Tech Star Hits Wall in Bid to Own Future
