The Taiwanese boss of an auto component-maker in the Okinawan city of Uruma is confident that his decision to come to the island prefecture was the right one.

"If you have production bases in Okinawa, your products will be labeled 'made in Japan' and become more competitive," Johnnie Lin, president of Nippon Hishiyama, said last month before a group of some 30 representatives from Taiwanese semiconductor and medical equipment manufactures.

Nippon Hishiyama is the first foreign manufacturer to set up a business in an industrial development zone in Uruma and is attracting the attention of other Taiwanese firms.