President & CEO (Representative Director), AGC Inc.
【創業118年目】ガラスメーカーからスタート／ポートフォリオ大変革／両利きの経営／社長は工学博士／京都大学の特任教授も務める／失敗からの大逆転／人財のAGC
【Sponsored by AGC】
注目すべき企業やプロジェクトのトップランナーを招き、キーワードをもとに掘り下げていく番組「& questions」。今回は、「118年間、AGCが問い続けてきたこと」をテーマに、AGCの平井良典さんに話を聞きました。
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▼ 目次
00:00 ダイジェスト
01:16 オープニング
04:32 118年
17:07 両利きの経営
24:02 人財
31:49 ダブルインパクト
34:12 2030年
▼出演者情報
平井良典
AGC株式会社 代表取締役 兼 社長執行役員CEO
1959年福井県生まれ。東京大学大学院工学系研究科博士課程修了。
1987年に旭硝子（現AGC）入社。
液晶パネル事業子会社の副社長などを経て、2011年AGC事業開拓室長。
2016年CTO（最高技術責任者）となり、2021年より現職。
#AGC #ガラス #両利きの経営 #グローバルCDMO #カーボンネットゼロ #人財 #pivot
About Yoshinori Hirai
Yoshinori Hirai, President and CEO of AGC, has been promoting the company’s participation in CES 2025, where AGC plans to showcase solutions in next-generation mobility, semiconductors, and energy. In a video message, Hirai stated that “material evolution is the foundation of innovation” and that “without high-quality materials, innovation slows down.” He highlighted AGC’s historical role in developing an alternative to CFCs in the 1980s and its current work in automotive glass, EUV mask blanks, and hydrogen-related technologies. In interviews, Hirai has discussed AGC’s “ambidextrous management” approach, which he described as having existing businesses support new ventures while keeping new projects “light asset” to avoid excessive costs. He attributed Japan’s “lost 30 years” to a post-bubble focus on cost-cutting rather than pursuing new growth, and said that viewing wages as a cost rather than an investment suppressed innovation. Hirai noted that AGC has raised wages by over 6% for two consecutive years and plans to continue, linking this to investment in talent. He also reflected on his own early career, saying that an initial business failure taught him that “good technology alone does not guarantee business success” and that a customer perspective is essential. Hirai added that he has made a personal rule to never assume something is impossible, stating, “the moment you think it’s impossible, you are 100% not going to succeed.”
Transcript (33 segments)
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Yoshinori Hirai0:00
Supporting new businesses with existing ones is essential for ambidextrous management. We keep new ventures asset-light, leveraging other divisions' assets to launch efficiently without wasting resources. In management philosophy, it's crucial to invest upfront. I've failed several times but never been penalized; I once caused losses of hundreds of millions but was instructed to try again, leading to new trials that contributed to future success. I collaborated with a major American IT company on world-first products, learning Silicon Valley's fast and high-quality decision-making, which I believe Japanese companies lack. I attempted to build a team modeled after American VCs. Learning from Silicon Valley is often discussed, but how can it best fit into large Japanese corporations? First, let me start by saying...
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Sasaki1:15
Hello everyone, I'm Sasaki from Pivot. This program, 'Top Runner Questions', interviews leading innovators on the latest initiatives. Today's theme is AGC's 118 years of continuous questioning, sponsored by AGC. AGC is a well-known Japanese materials manufacturer with world-class technology in glass and advanced materials, expanding into mobility, life sciences, and electronics, supporting lives for over a century. We'll explore AGC's history, mission, and future vision. Our guest today is Yoshinori Hirai, President and CEO of AGC. Hirai-san, thank you for joining. You're the CEO of a large corporation and appear publicly often, unlike many CEOs. Why? We want to communicate our ideas. Japan has been somewhat stagnant, and I hope to contribute to change. You have a PhD, experience in Silicon Valley, and were CTO before CEO. Is the CTO to CEO path common? At AGC, it's the first. In Japan, PhDs are less respected but valued overseas for innovation. Globally, PhDs are advantageous for CEOs. Today's themes: Ambidextrous Management, Human Resources, Double Impact, and 2030. Starting with 118 years, what connection has AGC walked? Could you explain briefly?
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Yoshinori Hirai2:31
We want to communicate our ideas and opinions. AGC will continue to change, but looking broadly, Japan has been stagnant. I hope to contribute to changing Japanese society, even a little. Regarding my PhD and Silicon Valley experience, and being CTO before CEO: at AGC, this is the first. I'm the first president from a research background with a PhD. Overseas, it's common for PhDs or technology backgrounds to lead to CEO roles, but in Japan, it's rare due to less respect for academic degrees. A PhD signifies innovation and is highly valued globally, but in Japan, it's often associated with academia. This is perhaps why Japan is an exception.
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Sasaki4:04
Understood. Today, we'll discuss five themes: Ambidextrous Management, Human Resources, Double Impact, and 2030. Starting with the keyword '118 years', what kind of connection has AGC walked? Could you briefly explain the history?
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Yoshinori Hirai4:33
AGC was founded in 1907, at the end of the Meiji era, when urbanization increased demand for glass. All glass was imported, and many attempted domestic production but failed. Our founder, Toshiya Iwasaki, studied in London and believed Japan needed glass for development. He imported European expertise and started production in two years, involving foreign engineers. World War I began, cutting off imports of raw materials, so AGC domesticated materials, leading to ceramics and chemical businesses. The founding spirit is 'challenge the difficult', which remains in AGC culture. In 2018, we changed from Asahi Glass to AGC, reflecting our diversified materials focus beyond glass.
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Sasaki6:43
Does the founding spirit still live today? What essence defines it?
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Yoshinori Hirai7:00
The founding spirit includes 'challenge the difficult', encouraging innovative leaps. This remains core to AGC's challenging spirit and culture. We've diversified by evolving our products over time, from glass to automotive, television, chemicals, semiconductors, and more, based on this spirit.
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Sasaki7:52
Over 118 years, AGC has pivoted by developing new products. Could you explain how this evolved, from the founding era to current pivots?
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Yoshinori Hirai8:03
In the founding era, we domesticated glass production. Post-World War I, we expanded into ceramics and chemicals. After World War II, television and motorization booms increased glass demand. In the 1970s, environmental issues led us to adopt mercury-free processes, enhancing our environmental focus. Today, smartphones drive demand for special glass and coatings, and we provide materials for global CDMO and 5G. We enter markets by anticipating future needs, like starting bio-science research in 1985, which paid off later.
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Sasaki11:41
That's impressive long-term investment. How do you sustain research for decades in the materials industry, where returns are slow?
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Yoshinori Hirai11:44
Materials industry requires long-term perspective. We look 10 years ahead. Short-term market pressures are less influential. For example, MaskBlancs product development started in 2003 and took 20 years. Success rates for new ventures are over 50% due to careful exploration and judgment before committing. Talent varies; some excel at exploration, others at deepening, but innovation requires it.
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Sasaki13:05
Japan has many strong materials companies, likely due to long-term perspectives. How has revenue structure evolved from glass to other areas?
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Yoshinori Hirai13:11
Glass remains profitable with long product life cycles. It provided stability for diversification. After the bubble burst and trade pressures, glass revenue declined, causing a crisis in the 1990s. We maintained top share due to regional production and delivery strengths. Over 118 years, we've continuously evolved our portfolio, using core business profits to expand into new areas like automotive, television, chemicals, and semiconductors.
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Sasaki14:47
What were the major crises in 118 years, besides the 1990s?
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Yoshinori Hirai15:47
Around 2010, digital TVs replaced CRTs, causing rapid price declines and profit drops. We responded by transforming our portfolio and culture starting in 2015, aligning with ambidextrous management.
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Sasaki17:03
Ambidextrous management started from there? Could you elaborate on how AGC implements it?
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Yoshinori Hirai17:07
I learned about ambidextrous management in 2018 from Stanford professor O'Reilly, who said AGC exemplifies it. The essence is growing existing businesses while fostering new ones with different teams and cultures. Unlike isolated ventures, we support new businesses with existing ones, creating synergy. For example, I expanded bio-Pharma CDMO using support from chemical division head Shimamura, leveraging assets without waste. This requires a culture that encourages challenge, and over time, employees embrace exploration, creating a virtuous cycle.
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Sasaki20:22
Existing business employees might resent supporting new ventures. How do you manage that?
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Yoshinori Hirai20:27
There are always dissenters, but building allies helps. When new ventures succeed, it creates positive momentum, and eventually, employees actively seek exploration roles. Not all attempts succeed, but we judge carefully at the exploration stage, with over 50% success for committed ventures. Talent differs; innovation requires fewer people than operational excellence, which Japan excels at.
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Sasaki23:01
How has AGC's portfolio changed in terms of exploration vs. deepening?
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Yoshinori Hirai23:04
Profits have shifted from 90% electronics in 2010 to more chemicals, with electronics moving from displays to semiconductors and smartphone glass. We've diversified from single-leg dependence to multiple businesses, driven by innovation and operational excellence.
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Sasaki24:00
How do you instill a new culture, especially after stagnation periods?
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Yoshinori Hirai24:03
We focus on 'human resources at AGC', with individual growth leading to organizational strength. Growth must be self-driven. Diversity is key; 80% of employees are non-Japanese, but we need to leverage and respect differences. We promote dialogue between top management and employees, with me doing over 100 sessions yearly. This ensures clear communication and psychological safety, allowing open discussion. We emphasize a plus-oriented culture, investing upfront in salaries and encouraging trial-and-error without penalties.
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Sasaki26:32
You mentioned plus-oriented culture. How does that work in practice, especially with failures?
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Yoshinori Hirai26:35
We invest upfront, like our early salary increases. Failures are not penalized; instead, I encourage retries. I've failed personally but was instructed to try again, leading to successes. This culture motivates employees. For example, I once incurred losses but was given another chance, which led to collaboration with a major American IT company on world-first products, learning from Silicon Valley's fast decisions. I built a venture-style team, adapting methods to fit Japanese corporate culture.
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Sasaki30:39
How can Silicon Valley learning best integrate into large Japanese corporations?
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Yoshinori Hirai30:45
It requires top management commitment and cultural change. Merely copying methods fails without the right mindset. I modified approaches, recognizing that Japanese teams may not match Silicon Valley's entrepreneurial spirit, so I focused on organizational operations.
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Sasaki31:40
Next is 'Double Impact'. What does it refer to?
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Yoshinori Hirai31:50
Double Impact means creating both social and economic value. Previously seen as conflicting, we now define them as a value spiral: social value leads to economic value. In materials industry, R&D takes years, so reading ahead is vital. Our 'Look Beyond' vision emphasizes long-term thinking. For innovation, I practice learning from diverse fields, not just specialization, to foster broad perspectives.
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Sasaki33:58
Finally, looking at 2030, what will AGC's vision be?
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Yoshinori Hirai34:03
Upon becoming CEO, I set the 2030 vision as contributing to a sustainable society while AGC continuously grows and evolves. This requires ongoing ambidextrous management and developing people who can sustain this. My top challenge is talent development through actual business learning and continuous dialogue. We seek employees with determination to achieve goals over time and a 'can-do' mindset, believing that anything is possible with effort. Japan's materials industry strength comes from long-term perspectives, but talent development is key to sustaining growth.
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Sasaki37:18
Thank you, Hirai-san, for sharing AGC's insights today.
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Yoshinori Hirai37:21
Thank you for having me.