Thank you very much for your attendance. Good morning to all of you. My name is Furuta, COO and Executive Vice President of the company. Thank you very much for taking the time out of your very busy schedule to attend this. This is the first IR meeting, even though we have the history of 88 years in the past. This intends to provide the information about the future and future outlook. This is very important, the meeting, to be connected with the investors and the analysts and the people in the market. We would like to deliver the sufficient information to you so that you will be able to understand more about us.
At this IR day, five members in charge of the business areas, businesses, will present their presentations about their specific area and also future strategy. Today is the day one, and the Yoshinami Takahashi, Megumi Shimazu, Vivek Mahajan are the presenters today for day one. The Fujitsu Uvance and which is our global strategy, and the delivery strategy, and the technology strategy to support that, will be given today. I will also be part of the Q&A session as well. Tomorrow, the presenters are Hidenori Furuta, myself, Shunsuke Onishi, and Hiroyuki Tsutsumi. We would like to talk more about the regional strategies. The core and the theme is the modernization from on-premise facilities and the on-cloud and hybrid IT towards the future directions.
With the Fujitsu Uvance as the core, we would like to support customers' digital transformation, and that is where we define as our future growth strategy, growth area, and the as for the purpose and mission, to support the sustainable society, that is another perspective. I hope you will have the better understanding about Fujitsu in these areas. Today and tomorrow, Q&A sessions will be included today and tomorrow. We are keen to hear your views and your questions, and would like to continue having discussion, dialogue with you on the valuable ideas and the insights from the financial market is quite important. Equity market is quite important. We are looking forward to hearing your voices and your opinions about us.
This is going to be a two-day session, and hope you will stay with us, and hope this is going to be a fulfilling and informative opportunity for you, as well as for ourselves. Thank you very much. With this, I'd like to conclude my opening remarks. Now I would like to start the presentations. First of all, on Fujitsu Uvance business strategy, Takahashi will be presenting. Over to you, Takahashi-san.
Hello, everyone. Thank you for the introduction. My name is Takahashi. I'll be talking about the Uvance strategy as a whole. Thank you for this opportunity. First of all, before I get into the main topic, let me briefly introduce myself. I worked for Sony for 27 years. I was involved in the international business and also the consumer business. Blu-ray format launch and software and hardware by integrating them to deliver new services. That's what I was mainly involved at Sony. I also worked for Microsoft Japan to promote the cloud business and DX, to accelerate the DX. I worked for Microsoft for seven years. In 2021, in June 2021, I joined Fujitsu. Starting from this year, I became responsible for Uvance business as a whole.
From April, I became the head of our Global Solution Business Group. Let me explain the market, first of all. The past five years, for the businesses to promote the digital to improve the efficiency, and furthermore, by promoting digitalization, more and more customers will be able to achieve more and more. That's what was undertaken for the past few years or so. In the coming five-10 years, as you can see here, for instance, to make a GHG visible and not just reporting, but the actual reduction of GHG and supply chain divide in order to accommodate that, to build the resilient supply chain, and also to secure the safety in the cities, and to also reduce the food loss. Such sustainable transformation will be the core to drive the market.
According to the third-party data, in 2025, we expect that the market will be as big as JPY 8 trillion. Towards 2030, this JPY 8 trillion will expand to JPY 20 trillion. This JPY 20 trillion market could have a potential to further expand to JPY 80 trillion. This sustainability transformation market, Fujitsu, by promoting Uvance business, we would like to proactively build the market and drive and lead the market. Let me introduce the Uvance business a little bit. First of all, 2021, Fujitsu Uvance was announced, and we talked about seven key focus areas. We identified seven key focus areas. Four verticals. First one was the sustainable manufacturing, consumer experience, healthy living, just society.
These four are the vertical areas, on top of that, three horizontal areas: digital shifts, business application, SAP, Salesforce, and hybrid IT. These four vertical segments and the three platforms that will support that to deliver new offerings and solutions. Especially when it comes to the Uvance business technologies, five core technologies shall be leveraged so that our IP will be integrated to roll out the offerings to solve the social issues. Let me talk about the Uvance business model. First of all, Uvance is going to create the market and provide the high value added based on the social issues. In the past, it was more of a products in the industry and business specific sector, but with the...
We would like to shift the sustainability transformation offerings, as I mentioned earlier, to the business improvement and visualization, and not just that, but also the actual GHG reduction and reduction of the food loss. We'd like to make a commitment to those as the actual deliverables, and to support the whole value chain, a cross-industry solution shall be provided, so that it's not just limited to one industry, one specific sector, but to a wide range of customers, industries, we can provide the solutions. The second point is in the past, it was more of based on the requirements driven by the customer IT departments, but we would like to shift to issue-driven. By leading with the consulting, so that we can solve issues with a CXO, align our business to identify the issues and solve those issues.
For that purpose, we will be co-developing the actual offerings and accelerate the time to market with the strategic partners, and to further expand the value added. The third point is, in the past, it was SI for the individual companies, but we would like to shift it to the global common services. Especially as for the global common services, service standardization, and by making in-house IPs, we would like to secure the scalability. By so doing, we can develop high profitability. We need to continue the enhancement of our own cloud digital services, and we'll have the functions running on own cloud, and continue to expand that to continuously support the customers. Fujitsu Uvance numerical targets are on this page. 2022, from JPY 200 billion to JPY 700 billion in fiscal 2025.
That's how much we would like to expand this business. Especially this increment of JPY 500 billion in verticals, JPY 400 billion, and in horizontal, JPY 100 billion. That's the plan for our growth. Earlier on, I mentioned JPY 8 trillion for the sustainability markets, so JPY 400 billion out of that is a 5%, is going to be our market share to develop this, to gain this JPY 400 billion. As a total, JPY 700 billion in 2025 is the target. For the horizontals, especially SAP, ServiceNow, Salesforce, those business applications in those areas, the market is going to expand significantly, and we need to acquire those market so that we can get the capacity capabilities to make sure to get the demand to build this JPY 100 billion of incremental.
As for the specific measures, first of all, in the vertical areas, the first point, the offerings to realize the customer transformation, we would like to lead the way in developing those offerings ahead of other companies. Second one is by leveraging a customer base, we would like to expand to cross industries so that only Fujitsu can provide these offerings. Especially when it comes to solution services market, we have a JPY 2 trillion scale, so not necessarily depending on the industry, but we do have insights, comprehensive insights, so like to bridge them across industry to lead to offerings. The third point is to strengthen the consulting and coordinate with the partners. I'd like to use those three measures. For horizontal, we'd like to strengthen the delivery resources. That would be our main action.
I won't go into the details, but 2023, this fiscal year, Uvance offerings lineup, we have organized this in the vertical areas, about 24 offerings are already available on a global basis. I won't go into the details here, but to support that, the horizontal offerings to support that, in SAP ServiceNow Salesforce, those are high-level modules, we will offer them as a part of the services. Let me talk about the specific case example, what kind of offerings?
available as one example. This is often called the Smart Seaport. This is now being negotiated, in progress for the global ports authorities, so we are in discussion. Specifically, in different ports. With the globalization, there is an increase in the volume of the transportation, and with the bigger vessels, there is increase in burden of the operations at the ports. Those are the issues, even in the COVID-19, there was a stagnant distribution at the ports, with the divided supply chain. Now, with the latest technology, quantum algorithm and AI cybersecurity, by leveraging those technologies, we would like to optimize operations at the ports. In terms of the actual market, it will be as big as JPY 400 billion, and this shall be rolled out on a global scale.
Especially our technologies, the blockchain and the quantum technologies can be applied here. The second area is what we call Virtual Pharma, offering opportunity. With a number of pharmaceutical companies, we are having business discussion right now. As you know, in drug discovery, peptide drug compound candidates are identified, and they are in the thousands in terms of the numbers, they need to be narrowed down to tens of them, and it's a major challenge. By using the computing technologies, like a quantum technology, we will be able to narrow down such candidates, so that the time to market of the drug delivery will be shortened. In creating one pharmaceutical product, 10- 20 years of, over the time range is needed, and significant investment is needed.
What is important is to shorten the time period for the development. Life science and the IT service market is said to be around JPY 1.3 trillion. We would like to apply our Digital Annealer high-performance computing AI to contribute to this area. Next is cross-industry offerings. I'd like to talk a little bit about this point. Currently, in the industry, there are societal issues like reducing the Scope 3 reduction of CO2. Not just visualizing and reducing CO2 emissions across and within that particular company, but how to reduce that in the entire supply chain is a major requirement.
The, it is, the, doing quite well, in the overseas markets, and the customers in Japan are also calling for the technologies like the traceability based upon their blockchain, and also platform, based upon their data, trusted data, will be the, the basis of such capabilities. Supply chain, the, across the different industries, the, we will offer the solutions in order to, for example, visualize the Scope 3 CO2 emission, so that the, in a cross-industry manner, we will be able to offer solutions, the, to the, social problems. Particularly in manufacturing, distribution, and the retail areas, about the JPY 2 trillion , that is the size of the markets in these areas, not just the vertical requirement.
The cross-industry needs have been captured by, with our capabilities. Next, the how to change the approaches is the key. The one-to-one to one-to- two, one-to-N, one-to-multiples, we would like to expand this approach. On cloud, functions, applications, and offerings will be implemented on cloud, and comprehensively offer this to multiple customers so that the time to market will be shortened and a higher profitability will be captured. That is our intention here. This is one example, and the digital supply chain in the sustainable manufacturing, for example, at the beer brewery AB InBev, they had the issue about the traceability and the fashion industry, the company Tex.tracer. The risk, supply chain risk management was the issue.
As for the major beverage company, the another supply chain, and also the realizing the traceability of the regenerated agriculture. These are the requirements of all of these specific customers. We can cover all these areas and offer sustainability and reduce time to market. We used to offer individual specific offerings to each of them, but the on-cloud, standardized, and the services can be offered so that we can offer scalability. SI, from on-premise to the on-cloud proposals, is where we would like to transition to. As you know, in the vertical area, sustainable transformation is the key, a very big keyword. More than ever, technology consulting and the front desk, frontline activities shall be unified, and the combined approach is important.
Consulting functions shall be enhanced, particularly expert knowledge, like on the sustainability, manufacturing, distribution, healthcare, and the process mining, industry knowledge, and the data analytics and AI. The expert knowledge shall be also shared with the frontline people, so that they will be effective in getting business from the customers. At the same time, know-how of consulting firms shall be utilized, and in working with the customers, the multi-year enhancement of the deals and the ESIS, NCIS, which is the environmental consulting from upstream to offering and solutions on the one-stop offering of those capabilities will be realized. For horizontal area, SAP, ServiceNow, and Salesforce, a capacity capability of them shall be fully established.
The 3,000 personnel back in 2022, we are going to increase them up to 8,000 personnel by 2025. Strategic alliance, well, last week, when we announced the mid-term management plan, we also touched upon this point. Microsoft, AWS, ServiceNow, SAP, Salesforce, they are core partners. In many ways, they are working with us in the strategic areas, particularly in Uvance. Further, the partnership, like the putting Uvance in the marketplace or 3S, SAP with these partners, and their IPs, shall be combined with our IPs in providing offerings. That's what we are doing as well. At the same time, new partners for Uvance are shown here. Emphasis, which is the environment consultants and the digital twin, particularly disaster prevention.
The special information on the data digital twin, Hexagon, is our new partner. To be more specific about the examples, the earlier 9:30 A.M., Microsoft and the partnership with them was announced. Sustainability transformation to real and the cloud solution, the joint development and business deployment was announced earlier, 9:30 A.M. this today. By using IPs of Microsoft and Fujitsu, Uvance business shall be promoted and the competitiveness shall be enhanced. The second point is the a joint development support by the MS engineers and the consulting resources in co-development, mainly in Western markets, go-to-market strategy implementation, acquisition of new logo through working together. The partnership of Uvance and Microsoft was announced earlier.
I skipped the details, but the particularly sustainable manufacturing area, healthy living, customer experience, our expertise and the Microsoft IP will be integrated together to offer the better value of offerings. For example, in the retail industry, we have the scan and go, as well as a behavioral analytical capability and digital science and digital capabilities of Microsoft shall be combined together to create a new solution and new services. Another point is about the acquisition of GK Software. I'd like to explain about this topic a little bit. GK Software focuses upon the global retail industry. Cloud-type offerings are being offered to the customers by this company. The global 50 retailers among them, nearly 50% of them are using GK Software already.
They have leading-edge retail offerings and solutions, and by having them through this acquisition, CX, customer experience area, particularly towards the JPY 25 billion-JPY 100 billion of a business is to be created. Particularly, as for offerings by GK Software, leading-edge, for example, dynamic pricing, personalization. Well, they, we are trying something new for the domestic retailers as well, and by using our sales platform, GK Software offerings will be distributed globally. That's what we are trying to do. Lastly, but not in the least, Uvance intends, well, means that we will work towards the better, where people can live in prosperity and peace. All the members and the staffs of Fujitsu are working towards the direction of Fujitsu Uvance, and we have technologies for this purpose.
Uvance business, we have the partnership to support our Fujitsu Uvance as well, together with us. With this framework, we would like to promote Fujitsu Uvance and appreciate your understanding. Thank you very much for your kind attention.
Excuse me. Next, on delivery strategy, Ms. Shimazu is going to be presenting. Over to you, Shimazu-san.
Hello, everyone. Nice meeting you. I am Shimazu, in charge of global technology solutions in Fujitsu. Before I get into the main topic, let me briefly introduce myself. Ever since I joined Fujitsu, I've been serving customers at the frontline as a system engineer for a long time. I'd like to take this opportunity to thank you, the shareholders, investors, for your day-to-day support.... On the 24th, last week, our President and CEO made announcement about the mid-term management plan. Today, out of that, I'd like to talk about the delivery strategy, the delivery standardization, and the measures to improve the productivity, and also Fujitsu's Modernization Knowledge Center is what I'd like to share with you today. First of all, on the delivery standardization and productivity improvement. This is the update on the resources on delivery.
Offshore center in Fujitsu and GDC, which is the Global Delivery Center, a function to promote the standardization, automation, and offshoring in delivery, a JGG or Japan Global Gateway. If we are to combine these GDC and JGG, the scale of the resources as of the end of fiscal 2022 is 30,000. Out of them, 7,000 in JGG and GDC in seven international locations, 23,000. JGG was established back in fiscal 2021. Through integration of SC companies, we've been expanding the headcount scale. Towards 2025, we'd like to further expand to 40,000 headcount scale. The President and CFO gave explanation to the members of the stock market. They talked about improving the profit by promoting the in-house and standardization.
As a matter of fact, so far, we have been taking actions to steadily improve the profitability through various measures, but there's still room for further improvement. The initiatives in GDC and JGG, how we're contributing to the profit improvement, I hope my talk will be of help for you to understand how we contribute to that. Now, as for the measures for the profit improvement, the quality and productivity improvement, and utilization rate improvement on top of that, it is indispensable to expand the capabilities to support the Fujitsu Uvance, which will be the future growth areas.
To realize that, first is to expand the offshoring for the Japanese market, with a stronger DX demand going forward, and by enhancing the demand forecast, through data-driven, and to have the resources stand by from the early timing of the negotiation is going to be critical here. Expansion of the internal IT development, we need to shift from depending on partners, and we have to aim for maximizing the impact of various measures. The key for standardization and automation is the expansion of leveraging JGG, to expand the shared services, with the Fujitsu development platform as a common ground. We would like to proactively leverage AIs as well. Furthermore, we will also promote the skill shift towards the growth areas of the delivery resources.
Now, so far, we've been working on the resource management by GDC location, so far. Going forward, in addition to realizing the across global resource management and to the geo-political risks, which is difficult to forecast, we need to enhance the resilience, and for that purpose, we have to shift away from optimization by location. Furthermore, in promoting these measures, what is extremely important is to maintain a high level of employee engagement. As you may be able to imagine, the biggest assets, the most valuable assets for our business in Fujitsu are our colleagues, who are active around the globe, and the high level of engagement itself would directly lead to the value of the quality of what we offer. That's why I wanted to dare mention about that here.
Let me talk about the delivery model that Fujitsu has been promoting ever since JGG was established. Conventionally, the model was to provide the delivery through the know-hows that is depending on the individual methodologies based and the people. Rather, as you can see here, through the company-wide shared services, which is more organized and systemized, we would like to realize the standardization automation as well. This model kicked off after we started the JGG, and it's continuously evolving.
As for the shared services, the team structure, in GDC and JGG based on the service contents on the Fujitsu development platform, which is a secure common platform, the development operation will be done based on the standardized development process and technology, which enables the standardization and improvement efficiency and the enhancement of the quality. It may be easy to explain in words, but we are still in the midst of making a transition to this company-wide shared service model. This is an internal issue, but there are some cases where we cannot get the necessary resources at the necessary time, and the major factor for that is that the delivery members have not been able to be involved and engaged from the early stage of the negotiation.
For this issue, by leveraging the one CRM data which is being developed or rolled out right now, we'll be able to forecast the demand on the delivery side, so this will be a very effective way. Now, on top of such demand forecasting.
the skill mapping of the 30,000 headcount, the human talent resources, and by leveraging the talent technology, we can achieve the automation and faster resource matching, so the best resource allocation will be enabled. Within the shared services, by collecting and enhancing the actual knowledge of the projects, we can also enhance the knowledge management cycle to realize the high delivery, high quality delivery. So we are working on such organization development. The evolution and application of this, of this delivery model will also lead to increased insourcing and offshoring. Insourcing will not only build technical and delivery expertise, but will also reduce the cash outflows. Promoting insourcing enables project management based upon more real-time data, which can be expected to improve quality and thereby reduce unprofitable projects.
In the future, we intend to raise the in-house project production ratio from, or insourcing, from the current 59% to 64%. This insourcing includes the use of GDCs. As you can see, the offshoring rate is currently 11%, but we will raise this ratio up to 18%. Expanding offshore will not only reduce costs due to the difference in the unit cost of engineers, but we will also lead to a more proactive and stable supply of resources and promotion of global standardization. In addition, we will raise the percentage of standardization and automation application through the use of JGG from the current 30% to 45% by fiscal 2023.
As mentioned earlier, standardization and automation will not only improve productivity, but also optimize investment, optimize the allocation of engineers, and ensure capability in accordance with growth areas, leading to higher utilization. I will explain the expansion of GDC's capability in growth areas. In the GDC, we will significantly increase the ratio of personnel capable of handling Fujitsu's growth areas from the current 10% to 45%. We will, of course, replace skills in response to the changing demand, but we believe it is important to reskill personnel who became surplus through automation and streamlining, rather than simply hiring new personnel. We are promoting the advancement of resource management, in which business and corporate departments will work together to plan and execute data-driven management that links the skill maps of personnel with future plans for demand and offshore operation projects.
We have also established a reskilling program across the GDCs for reskilling. In the creation and implementation of educational programs, we will leverage the knowledge of Enable, an Australian company acquired last year, and we'll also collaborate with strategic partners through the Global Strategic Partner Academy, which we have previously announced. GDCs currently maintain a very high employee engagement score, +8 points higher compared to the global benchmark. This is not only a win-win situation in terms of promoting challenges by providing reskilling opportunities, but also in terms of employee retention, because the skills are needed by the company, and this is an important factor in shifting skills to growth areas. So far, I talked about the delivery standardization and the productivity improvement. Next, about the Modernization Knowledge Center.
The term modernization may have a different range of understanding for each of you. I will explain the definition of Fujitsu's scope of modernization. Modernization means platforms and application frameworks that make the most of valuable application assets of the client's system change and the modernized architectures, transforming them into optimal IT infrastructures, such as cloud systems. It also includes migration to DX and GX. In general, the barriers to modernization are the lack of understanding the customer's own business practices and understanding of the customer's business systems, which is a challenge that is often seen in the market. Fujitsu can provide an effective approach to modernization because we know customer system, and we are also aware of their knowledge as well.
Fujitsu's strength lies in its ability to handle the entire process from visualization of operations and assets, grand design, and streamlining of the entire information system to DX and GX optimization. Next, I will discuss the modernization market in Japan, where demand for DX is expected to grow. As this graph shows, the modernization and on-cloud markets are expected to expand significantly by 2026, in line with the increase in cloud penetration. In fact, we have seen an increase in the demand for modernization from the trend of business negotiations. Fujitsu's strategy is to expand its modernization and on-cloud or DX business against the backdrop of this growing demand, outpacing the future shrinkage of the mainstream Unix server market. Tomorrow, SVP Tsutsumi will explain the modernization strategy in tomorrow's session.
Fujitsu established the Modernization Knowledge Center in September 2010, or rather 2022, as a center of excellence function for aggressive modernization. This center provides business negotiation support to business producers who deal with customers, technical support to system engineers, and collection and organization of delivery knowledge to promote the enhancement of Fujitsu modernization services through feedback based upon practical experience. As part of this process, we will also develop modernization methods and tools. As an example of such tool, Fujitsu's mainframe modernization tool, called PROGRESSION, which has a proven track record overseas, is scheduled to be deployed in Japanese market starting 2024. We will follow up on the implementation of modernization of customer system and promote alliances with strategic partners.
We will aim to achieve modernization that exceeds the market growth rate by leveraging our experience in customer operations and systems cultivated over many years, our knowledge of DX, GX, and the knowledge we have accumulated through our COE function. This is the last slide of my presentation of the delivery strategy today. We will continue to contribute to the continuous improvement of the growth margin ratio through synergies that combine quality, productivity, and utilization improvement, and through aggressive modernization that maximizes our strengths. We will continue these measures with tireless efforts and strive for long-term growth in 2025 and beyond, and hope our shareholders and investors will support us in our efforts. I know in the limited time given to me, I was not able to fully explain some of the points, but I hope that this will help your understanding of Fujitsu.
I thank you for your kind attention. Thank you very much. Next, on technology strategy, Mr. Mahajan will be explaining. Over to you, Mahajan-san .
Good morning, everyone. I'm Mahajan, responsible for technology in Fujitsu. First of all, let me introduce myself briefly. Two years ago, about two years ago, I joined Fujitsu as CTO. Right before that, I was at IBM headquarters in New York, responsible for IBM Cloud and Global Technology Service. I was responsible for that. I was at Oracle and GE as well, sales, technology, combined. With the experience, I'm serving as CTO right now. Today, well, Takahashi and Shimazu has already talked about the modernization. How can we support that with technologies? I'd like to briefly talk about that. Our company, 18 months ago, we've decided to focus on five key technologies. Why did we decide to identify those key technologies? For sustainability, SX, the most important thing is to be able to manage the data in a centralized way.
Without DX, we cannot do SX. For the purpose of DX, processing and computing voluminous data and network to connect the data, and to get the expertise from data AI. Without security, our solution cannot be used, so we need to have a security. Converging Technologies. That would be the flow. That's why we decided to focus on these five technologies. Takahashi already talked about some of them, but how our technologies can be an engine for our future growth? The first point is that for these five key technologies, it covers a wider, wide range of areas, so where are we going to concentrate? Our strengths, what we've been working on for a long time, and also on a global scale, where we can compete, where we have a competitive edge.
Those are the premises for identifying the technologies. For instance, AI, we've been working on AI for a long time, and even within AI is quite broad, and various companies are working on that. For instance, human sensing, extendable, we have strengths in those. In computing, HPC, supercomputing, quantum, 5G, 6G technologies, and blockchain security, or as Takahashi-san mentioned earlier, Connection gen and smart city. With AI and various technologies can be combined together, it's not that we sell a technology on a stand-alone, we deliver solutions. Computing + AI, network + AI, security + AI. With the various combinations, we can deliver solutions to the customers. Last month, simultaneously in Japan and on a global scale, we made announcement about Fujitsu Kozuchi, which is our AI platform, on April 20th. Kozuchi, what is our target?
Our customers, for instance, you've asked, seven or four verticals and three horizontals. Needless to say, in interest in various applications, a big data will come along, and we need to get the knowledge from such data. That's what AI is aiming for. That's why our strengths, our IP, other IPs are combined, that we can deliver the solution using this platform, Kozuchi, from the bottom. Of course, there's AI, a core engine, and innovation components, and on top of that, what is in the middle or at the bottom, other companies' IPs can also be combined. From the left, the development and ops as well, operation as well. In line with the business of the customers, to be able to solve the solutions of the customers.
For instance, analysis and product portfolio inspection, and smart solution, and genome analysis. Our solution can provide the value to the customers. What is often asked is, "How about ChatGPT?" ChatGPT, we take it very positively. The reason for that is, as we've been delivering AI for a long time, but thanks to ChatGPT, customers' management has a higher mindset about the AI and has enhanced the requirements or demand for us. This is the overall positioning of Kozuchi. As you can see, by leveraging our strength, this is the positioning map, human sensing and extendable AI and causal discovery. With the innovation components, we can deliver solution.
NVIDIA can also be combined as well, and ChatGPT and other companies' AIPs, partners AI, AIP, IP, can be also combined to provide the overall solution. Another important factor for AI is trust. This is not just limited to Japan, but on a global scale, AI ethics. For AI ethics, I think we are leading away. This trust area is part of this Kozuchi and CDL, ConnectionChain technology or Trust as a Service and this information measures. I won't go into the details, but altogether, we already have a long history of track record with some customers. In terms of the Trust, the strength of data technologies and the Trust, these two factors will be very important. Another point is another area of our strength, which is AI and computing for AI.
Probably you already know, the computing and network capabilities are important here. AI and data, generative AI, for example, data requirement increases, the requirement for the computing will also increase. I will come back to the point of network later, the AI and the computing supporting AI, we have long-standing experience. For example, at Atmonia, which is the ammonia catalyst development business, this is a green chemical. Ammonia itself, the production of ammonia is not very favorable to the environment. Our HPC and AI can be combined so that Atmonia's IP can also be integrated to come up with the new way of producing ammonia. That's one example.
To Computing as a Service to support AI, which is a CaaS. We announced this last year, HPC technology and Digital Annealer technology. Broadly, Amazon, AWS, Azure, our capabilities were used on those platforms, and the learnings has been stimulated, and the computing workload broker, CPU, GPU, will be combined to optimize.
... the platform, optimization platform. What we intend to do is to combine quantum technology and HPC, so that the two environment, and they can be used at the same time at the customers. Last year, well, the quantum simulator and also superconducting quantum computer this year, and the 64 and the qubit, and the two nanometer technology will also be announced soon. Without the question, this is the area for further innovation. The other day, last week, we announced Fugaku. On top of Fugaku, generative AI technology will be worked on. This is going to be a large language model based upon Japanese. LLM, large language models, are mainly today are in English, but this time, the focus is the Japanese language.
Also to LLM, the demand for that will be enhanced, and that requires a lot of computing power. That's what we can offer. As an exit, as Takahashi mentioned, the output from this can be utilized for Uvance business, and that's what we intend to do. Quantum and the computing technology, I'd like to talk a little bit about this point. At Fujitsu, quantum technology, probably we are the frontrunner in terms of the quantum computing software, hardware, we are working on both of them. We have on the three technologies related to the quantum. We are already studying them, 64 qubit, 256, by 2025, 1,000 bit qubit.
For the high end, the quantum computing will be offered, and together with the Osaka University and also with the Delft University, well, the quantum state control and also quantum software, there are many way areas that we are working with these partners. As for network, for AI, this is to support AI and computing 5G technology and the virtualization of a 5G. We have customers like KDDI, NTT, as well as overseas AT&T. Well, they are using these capabilities. 6G, beyond 5G, for electron to photon migration transition. As the demand for AI increases, the requirement to the network will also increase, like latency, capacity, the requirement will be more demanding.
That's what we would like to focus upon and respond to the demand. The last one, the technology, Converging Technologies. All these technologies, ultimately, the people are going to use these technologies. We need to combine the technology and the social society. That's what we are trying to do, the human sensing and the technology digital twin. These are what we are trying to do. In the city of Kawasaki, Yamagata, in Japan, for medical, the application digital twin is what we are working out together with our customers in Japan and in the U.K. Isle of Wight is a place where we are conducting and working on the transportation system, which is very friendly to the environment.
In Pittsburgh, Carnegie Mellon University, well, the social infrastructure is the area that we are working together. We are still at the very early stage, but together with customers, starting from an early stage, mobility, energy, the disaster prevention, the mitigation and education, and water, food, well, the six digital twins are offered from Fujitsu. Exit from this is the where Takahashi's the team can work on, and the we offer this to the customers ultimately. The technologies and the we would like to utilize the our technologies, competitive technologies, globally, and number one is the position that we'd like to capture. In Japan, naturally, we have engineers and researchers, engineers, but globally, in Silicon Valley, U.S., and in the U.K. and Europe, we have research institutes in these places.
Additionally, the quantum computing and the AI software, we established a new research institute in India and in Israel, and this focuses upon the security and AI. This is another new research institute established this year. Globally, comprehensively, technology advancement is what we are trying to continue and achieve continuously. We are working together with the global universities to take up the challenge of technological development. Lastly, but not in the least, once again, create innovation and business through technologies and offer value to the customers. That's what we are trying to do. I appreciate your kind cooperation and understanding. Thank you very much.