A new survey of more than 100 Japanese CTOs indicates that most favor a shift in technology strategy away from semiconductors and liquid crystals toward nanotechnology, suggesting that Japanese companies may be feeling the heat from South Korean and Taiwanese chipmakers.

According to the survey, compiled by the Nikkei Business Daily, 53% of respondents indicated Japanese firms should pursue nanotechnology over the next decade, followed by 48% in favor of environmental technology and 45% for biotechnology. Only 4% said the focus should be put on chips and liquid crystals — an area in which 65% of respondents believe Japan led a decade ago.

Asked which domestic firms would lead technology development in the coming decade, the CTOs named Toyota Motor Corp., Canon, and Sony. For foreign firms, they picked IBM, General Electric, Intel, Samsung, and E.I. duPont de Nemours & Co.