Atrenta | Print |

February 2007 -- Atrenta is a San Jose-based provider of software used to design computer chips.  Being established as an independent entity in Japan has significantly raised their company profile among their consumer base and placed their sales on the path of doubling sales in 2005.

Opportunities in Japan
As Japan’s electronic design automation (EDA) market represents approximately 20-25% of the total global market, Atrenta regarded opening a Japan office a must.  “To ignore Japan is to ignore 25% of the market,” said Bill Baker, Asia General Manager for Atrenta.

Atrenta also needed a Japan office to directly support multi-national customers who have large operations in Japan, such as Texas Instruments.  “We need to be on the ground in these areas so that we can provide them the highest level of support.” said Baker, “Having direct operations in Japan is a very key part of our overall customer strategy.”

Market Entry
Before establishing their Japan subsidiary, Atrenta worked through the Japanese distributor Zuken.  “They did an excellent job in terms of establishing a base upon which to build,” said Baker.  “But we later became large enough to fund our own operation and needed to demonstrate commitment to our Japanese customers and to the Japanese market.”

Atrenta consulted with JETRO to plan the structure of their Japan subsidiary, learn the tax implications, evaluate how much they should assume for salaries and social costs, and assess the requirements for human resource benefits.  “I could have gone out and tried to find a business consultant,” said Baker, “but in that case, you’re never quite sure where their interest lies unless you’re working with somebody with whom you have experience.  And, of course, there would have been additional cost.  By working with JETRO, I was able to invest our resources directly into creating the KK.”

Results and Outlook
Atrenta established their subsidiary in August of 2005 and was able to more than double their 2005 sales in 2006.  “I attribute the success to having a direct presence here,” said Baker. 

Offering advice to other companies considering a Japan office, Baker says, “As a first step in considering business in Japan, sit down with a JETRO representative and understand the different company structures, the benefits of each, the tax consequences of each—all those are very fundamental questions that need to be answered before you can create a plan.  JETRO’s advice was invaluable.”