President & CEO (Representative Director), AGC Inc.
AGC、持続的な賃上げの狙いは半導体やワクチンも…ガラス一本足打法からの脱却【Bizスクエア】
2年連続で6%を超える賃上げを実施した総合素材メーカーの「AGC」、来年以降も賃上げを継続するとしています。
平井社長をスタジオに招いて、持続的な賃上げの狙いとその成長戦略についてお話を伺います。
【スタジオゲスト】
平井良典（AGC社長）
【コメンテーター】
白井さゆり（慶応義塾大学 総合政策学部教授）
★「Bizスクエア」★
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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 (58 segments)
I
Interviewer0:01
For two consecutive years, AGC, a comprehensive materials manufacturer, has implemented wage increases exceeding 6%. The company plans to continue raising wages going forward. Today, we have invited President Hirai to the studio to discuss the aims behind these sustainable wage increases and the company's growth strategy.
Y
Yoshinori Hirai0:19
Regarding wage increases, I believe it's not about a one-time measure, but rather about pursuing sustainable growth—that is what's important.
I
Interviewer0:27
As wages and prices become key to the Japanese economy, AGC President Yoshinori Hirai has committed to sustainable wage increases, emphasizing that investment in people—securing talented human resources—is essential for AGC's growth.
Y
Yoshinori Hirai0:48
Increasing productivity and creating new added value—the driving force behind both is our people. To encourage employees to do their best and create new value, we considered wage increases as a means of support.
I
Interviewer1:07
AGC was founded in 1907 as Asahi Glass. It holds the world's number one market share in glass, with one in four cars worldwide using AGC glass. Around 2010, 80% of its profits came from TV monitor glass. However, price destruction in LCD TVs caused profits to plummet. To escape reliance on glass alone, the company pursued a dual strategy: deepening its core glass business while exploring new strategic ventures. This ambidextrous management approach successfully restored performance.
Y
Yoshinori Hirai1:53
We strengthen our legacy businesses as core businesses, while simultaneously launching new ventures in new growth areas. Creating new materials-based businesses and products takes 10 to 20 years.
I
Interviewer2:15
We visited AGC's Technical Center in Yokohama. Using VR goggles, you can create virtual prototypes of glass products. When selling glass to architects and automakers, producing physical samples with different colors and reflections is both time-consuming and costly. AGC has enabled designers to review and modify materials in a virtual environment.
Y
Yoshinori Hirai3:09
By using VR, we can conduct various thought experiments using only data. This leads to cost reduction and allows us to share precise customer needs more effectively.
I
Interviewer3:22
AGC has also achieved a groundbreaking initiative for decarbonization. In June, the company successfully completed the world's first pilot production experiment using ammonia fuel for glass manufacturing. According to the Ministry of the Environment, conventional flat glass manufacturing emits 30 kg of CO2 per ton. Reducing CO2 emissions is a major challenge for AGC.
Y
Yoshinori Hirai4:04
The glass business is already quite large, so it may not grow dramatically from here. However, the fact remains that it generates significant CO2 emissions. We believe our mission is to provide glass products through next-generation manufacturing methods.
I
Interviewer4:30
Meanwhile, AGC has actively pursued growth in semiconductor-related products and vaccine development, transforming from a glass manufacturer into a comprehensive materials company. Through sustainable wage increases, deepening core businesses, and developing strategic ventures, what growth strategy will AGC pursue? Please welcome our guest, AGC President Yoshinori Hirai.
Y
Yoshinori Hirai5:04
Thank you for having me.
I
Interviewer5:05
Thank you for joining us. It's been about five years since you changed the name from Asahi Glass to AGC. Has the AGC name become well recognized?
Y
Yoshinori Hirai5:13
Recognition has increased quite a bit. I'm somewhat relieved about that.
I
Interviewer5:19
You hold a doctorate in physical engineering—a thoroughly science-oriented CEO. Last year you won the Suit of the Year award in the business category. That must have been gratifying.
Y
Yoshinori Hirai5:28
It was certainly happy for me, but it's a bit embarrassing, so I'd rather not dwell on it.
I
Interviewer5:33
You're looking sharp in your suit today as well. Let's start with wage increases. AGC announced it would continue sustainable wage increases through 2030, which has been making headlines. What motivated this commitment of nearly 10 years?
Y
Yoshinori Hirai5:52
I wouldn't go so far as to commit to that exact timeline, but I genuinely believe sustainable wage increases are extremely important.
I
Interviewer6:01
So you have the determination to continue raising wages. What is the context of the year 2030?
Y
Yoshinori Hirai6:08
We have a long-term vision for 2030 as part of our management plan. It includes contributing to societal sustainability, which requires our company to continuously grow and evolve. Within that, sustainable wage increases are one important element.
I
Interviewer6:31
That's indeed an important element. So you're saying that to realize the 2030 plan, continuing wage increases throughout is crucial—and that's how it's been understood. But as a business leader, you can't make absolute promises. Yet you want to continue raising wages during the management plan period—is that a fair understanding?
Y
Yoshinori Hirai6:55
Continuing to grow the company is equivalent to continuing to invest in our people.
I
Interviewer7:00
Here we have a chart of AGC's wage increases. Over 6% this year and over 6% last year. The 6%+ increase last year was quite surprising, since inflation hadn't risen much yet. Two consecutive years. Starting salaries have seen double-digit increases since 2020. What is the reason behind being so proactive about wage increases?
Y
Yoshinori Hirai7:39
For the company to continuously grow and evolve toward 2030, it ultimately comes down to people. People think of new things, drive innovation, and improve productivity—all depends on human resources. Within our HR strategy, we believe wage increases are a necessary element to help people thrive and do their best.
I
Interviewer8:09
Is this different from the usual logic that says because prices are rising, you need to raise wages to keep employees motivated?
Y
Yoshinori Hirai8:21
I don't really think in those terms. Last year's 6% increase happened before inflation really kicked in. We did it purely to boost employee motivation, believing that would lead to new growth. I don't see it as needing to exceed inflation. Rather, the thinking is to raise wages first as an investment, then have employees create new added value—a approach similar to capital investment.
I
Interviewer8:55
That's compelling—wage increases are like capital investment, with returns coming back eventually. Now, about AGC's HR philosophy—I noticed on your website that when referring to human resources, you use the character for 'treasure' rather than 'material.' Has this been an AGC tradition?
Y
Yoshinori Hirai9:23
Yes, people are assets, not materials.
I
Interviewer9:30
So that's exactly why they're worth investing in. But looking back at Japan's economy over the past 30 years, even though we talk about wage increases now, for a long time there were none—zero base pay adjustments. AGC went through that too, I imagine. What happened back then? Were the managers of that era wrong?
Y
Yoshinori Hirai10:00
The 'lost 30 years' is something I feel strongly about. After the bubble burst, instead of finding new growth, companies tried to protect what they had and cut costs to get by. When you focus on cost reduction, wages don't increase—wages are treated as costs. If you view wages as costs rather than investments, cost reduction naturally includes suppressing wages. That continued for a very long time. That's why executives of our generation are now focusing on proper investment and driving innovation.
I
Interviewer10:51
When you think about it, Japanese companies are earnest—when told to cut costs, everyone works hard and essentially ends up reducing wages. That's Japan's history. How about suppliers? It's often said that suppliers find it difficult to raise wages.
Y
Yoshinori Hirai11:11
We believe the entire supply chain needs to be lifted together. Rather than one party making all the profit, we want to lead by increasing overall added value. If we do that, suppliers will naturally be able to raise wages too.
I
Interviewer11:28
So the old cost-reduction-oriented thinking wasn't ideal in hindsight?
Y
Yoshinori Hirai11:39
Cost reduction is important, but relying on it alone leads to a dead end. You need to increase product value and improve productivity while pursuing cost reduction. If you're only told to cut costs, it's tough.
I
Interviewer11:59
It's tough, and workers suffer even more. So we understand the importance of wage increases, but to fund them you need resources. How do you make that happen? Is this something that comes from years of sustained effort?
Y
Yoshinori Hirai12:15
After the LCD glass profit era ended, we went through a difficult period. To overcome that, we decided to deepen existing businesses as core businesses while launching new ventures in new fields—calling them strategic businesses. By strengthening both, we believed we could achieve sustainable growth. We announced this in 2016, and after considerable time, we're now seeing results.
I
Interviewer13:00
That's the ambidextrous management approach—deepening existing businesses while exploring new ones. Everyone talks about it, but it's easier said than done. Usually the new venture division is seen as doing its own thing with low success rates, and the company doesn't properly support it. That's been a weakness of Japanese companies.
Y
Yoshinori Hirai13:47
I worked in Silicon Valley when I was young. There, venture capital strongly supports young entrepreneurs, and there's a system for sharing the risk of failure. We adopted that mindset so that our core business people actively support strategic businesses rather than getting in their way.
I
Interviewer14:12
So without that, the main business people would just say 'what are those guys doing?' and the ventures would wither. Now the core business is a strong cheerleader for strategic businesses, with different standards for each. So what strategic businesses is AGC pursuing?
Y
Yoshinori Hirai14:39
In electronics, we manufacture semiconductor glass substrates that only two companies in the world can provide. In life sciences, we're the top domestic contract manufacturer for biopharmaceuticals. In mobility, we develop and manufacture functional glass for window displays and autonomous driving components.
I
Interviewer15:01
Some of these don't immediately seem derived from glass. Are they connected to your core business?
Y
Yoshinori Hirai15:14
Our founding in 1907 started with architectural glass, and all of our businesses are connected to that root.
I
Interviewer15:21
What about the semiconductor-related products? What exactly is the EUV photomask substrate?
Y
Yoshinori Hirai15:30
It's the master plate. Without it, semiconductor manufacturing equipment can't be made. Extremely fine nanometer-scale patterns are engraved on it, which are then transferred onto semiconductor chips.
I
Interviewer15:50
So AGC's material enables equipment makers to build their tools, which TSMC then uses to produce advanced semiconductors.
Y
Yoshinori Hirai15:59
That's right. We provide core materials to semiconductor makers.
I
Interviewer16:03
And the functional glass that turns windows into displays, plus new automotive glass—these are promising fields too?
Y
Yoshinori Hirai16:14
The automotive industry is undergoing what's called the CASE revolution—autonomous driving and electric vehicles are driving major changes. Cars are actually surrounded by glass. What humans see is essentially through glass, so we can attach various functions to glass surfaces. Today's cars have sensors and cameras on the glass. As autonomous driving advances, there will also be entertainment displays inside the vehicle. We're succeeding in various new ventures in this space.
I
Interviewer17:07
But this takes a long time, doesn't it? From investment through R&D, it easily takes 10 to 20 years.
Y
Yoshinori Hirai17:13
It takes 10 to 20 years, and the success rate isn't that high. We seed many initiatives, and after about 10 years, if it looks viable, we commit to full commercialization. People say AGC's strategic businesses are successful, but behind that are numerous failures.
I
Interviewer17:42
Indeed—it's not a one-in-two success rate. So unless the people involved in failed ventures are properly encouraged, the whole effort won't sustain itself.
Y
Yoshinori Hirai17:53
Exactly. The key to new venture success isn't just technology—it's culture. You have to encourage challenge and tolerate a certain level of failure, or new challenges won't emerge.
I
Interviewer18:11
I see. Looking at the projected composition of operating profit, will strategic businesses account for the larger share by 2030?
Y
Yoshinori Hirai18:25
Yes. We want strategic businesses to generate more than 50% of our profits by 2030.
I
Interviewer18:31
And core businesses will also maintain their profitability—that's important too.
Y
Yoshinori Hirai18:36
Compared to when profits bottomed out, core business profitability has nearly doubled. We'll continue growing that stably while expanding strategic businesses. This ambidextrous approach is what allows us to keep raising wages through 2030.
I
Interviewer18:53
That seems like a compelling vision. This has been a fascinating discussion. Thank you so much for joining us today.
Y
Yoshinori Hirai19:00
Thank you very much.