Japan Semiconductors Market Insights Forecasts to 2032

• The Japan Semiconductors Market Size was valued at USD 42.86 billion in 2022.
• The market is growing at a CAGR of 9.64% from 2022 to 2032.
• The Japan Semiconductors Market Size is expected to reach USD 107.63 billion by 2032.
• Japan is expected to grow the fastest during the forecast period.

 

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The Japan Semiconductors Market Size is expected to reach USD 107.63 billion by 2032, at a CAGR of 9.64% during the forecast period 2022 to 2032.

 

Market Overview

Japan has emerged as presently the fourth largest market in the world for the manufacturing of semiconductors and gross sales. Since, Japan was the world's largest semiconductor producer, accounting for more than half of global semiconductor fabrication of stored memory semiconductor products such as dynamic random access memory, or DRAM, and completely outperformed its competitors in terms of market valuation and demanded patents. However, Japan now accounts for only 9% of the global semiconductor production according to information provided in World Production Forecast for Semiconductors, Japanese Electronics, and Information Technology Industries Association (JEITA) Semiconductor Briefing.

 

Furthermore, the Semiconductor Equipment Association of Japan (“SEAJ”) announced that in 2021 semiconductor manufacturing equipment sales in Japan reached a Japan record level of $36 billion.  Semiconductor equipment sales in Japan have grown fourfold in the last ten years.  SEAJ forecasts stable 8% annual growth of semiconductor sales in FY2024.

 

The demand for Japan's logic semiconductor manufacturing line is expected to increase as a result of the rise from the electric vehicle semiconductor market, in which Japan competes fiercely, and industrial semiconductors, a future growth market. Power semiconductors are also essential components for electric vehicles (EVs) as well as reducing greenhouse gas emissions initiatives because they enable it to feasible to utilize electric power efficiently. In terms of sales, the top ten manufacturers of power semiconductors in 2021 included Mitsubishi Electric, Fuji Electric, Toshiba Corporation, Renesas Electronics, and ROHM. About 3-6% of the world's power semiconductor market is accounted for by Japanese manufacturers.

 

Report Coverage

This research report categorizes the market for Japan Semiconductors Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Semiconductors Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Semiconductors Market.

 

Driving Factors

The most important factor driving demand for semiconductor sales to Japan is Japan's electronic products industry, which is the third largest in the world. Several market ends, including automotive, consumer electronics, telecommunications, and industrial machinery, have a significant impact on Japan's semiconductor market. The semiconductor market has frequently experienced an upward trend of rapid and gradual revenue growth, owing to fluctuations in consumer demand.

 

Japan anticipated that promoting foreign semiconductor enterprises to establish production facilities in the nation would increase its economic security as well as support Japan in resuming its production of semiconductor chips. As part of a program to support domestic semiconductor production in Japan, the government also approved $7.7 billion in funding for 2021. Furthermore, Japan is attempting to reclaim lost ground in the semiconductor industry through a state-backed special-purpose company that has partnered with American tech heavyweight IBM.

 

As a result of various government initiatives, technological development, and manufacturer collaboration, the market for semiconductors is anticipated to grow exponentially. This presents an abundance of opportunities, particularly for manufacturers that provide chips for smartphone displays, computer servers, and data storage devices, electronic measuring devices and electro-medical gadgets, the Internet of Things (IoT), automotive electronics, and Artificial Intelligence (AI). Additionally, semiconductor expenditures for cloud computing data centers are expected to increase by 30%. Furthermore, the automotive industry's demand for semiconductor products is rapidly increasing. As a result of the aforementioned factors, the semiconductor market in Japan is projected to grow rapidly during the forecast period.

 

Market Segment

 

• In 2022, the integrated circuits segment is witnessing a higher growth rate over the forecast period. 

Based on the devices, the Japan Semiconductors Market is segmented discrete semiconductors, optoelectronics, sensors, integrated circuits, and others. Among these, the integrated circuits segment is witnessing a higher growth rate over the forecast period. The integrated circuits segmentation is the largest and represents semiconductors with specialized functions. They are typically made up of several basic semiconductor devices. This segment is subdivided further into analog integrated circuits, logic integrated circuits, memory integrated circuits, and micro integrated circuits.

 

Furthermore, the segment is anticipated to grow at one of the fastest rates during the forecast period due to factors including rising demand for smart sensors in IoT-based devices and consumer electronics, growing use of sensors to improve industrial processes, rising demand from automakers to deliver enhanced safety and comfort, and quickening use of wireless technology to monitor and control security devices equipped with smart sensors. Industry 4.0 and factory automation both heavily rely on sensors. Sensors for linear or angular positioning, tilt sensing, leveling, shock, and fall detection are all examples of motion, environmental, and vibration sensors that are used to keep an eye on the health of equipment.

 

• In 2022, the networking and communication segment is witnessing significant CAGR growth over the forecast period.

On the basis of application, the Japan Semiconductors Market is segmented into networking and communication, data processing, consumer electronics, power generation, electronic components, and others. Among these, the networking and communication segment is witnessing significant CAGR growth over the forecasted period. The demand for this application segment is growing as the need to work from home is increasingly prevalent in both developed and developing economies. Advances in the semiconductor market are also being fueled by the increasing commercialization of applications such as AI and 5G. Additionally, due to the high demand for and sales of smartphones and other connected devices, the data processing application segment accounts for a sizable portion of the semiconductor market.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan Semiconductors Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• TDK Corporation
• IPFlex
• PEZY Computing
• Kodenshi AUK Group
• THine Electronics
• Sanken Electric
• Socionext
• Mitsubishi Electric
• Toshiba Corporation
• Renesas Electronics
• Micron Memory Japan
• JAPAN MATERIAL Co
• Sanyo Electric Co., Ltd.
• Rapidus Corporation
• Seiko Group Corporation
• Sharp Corporation
• Shin-Etsu Chemical
• FERROTEC HOLDINGS Corp
• SUMCO Corporation
• Dainippon Screen
• AOI ELECTRONICS
• Intel Corporation
• Shindengen Electric Manufacturing
• FURUYA METAL C
• Samsung Electronics

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Recent Developments

• On March 2023, According to the World Intellectual Property Organization (WIPO) in Switzerland, Mitsubishi Electric Corporation ranked fourth globally and first among Japanese companies in terms of international patent applications filed in 2022. Mitsubishi Electric carefully aligns IP activities with the company's business and R&D strategies, positioning intellectual property (IP) as a critical business resource for future growth and development.

 

• On January 2023, Following the success of the original SmartBug in 2019, TDK Corporation announces the InvenSense SmartBug 2.0 with numerous new and exciting features for consumer and IoT applications as a smart remote data-collection module for IoT. The user interface, BLE, WIFI, USB, and SD card logging, and previous applications such as asset monitoring, smart door lock, and sensor fusion are all retained in SmartBug 2.0, preserving the original SmartBug experience.

 

• In December 2022, Mitsubishi Electric Corporation announced that its new SLIMDIP-Z power semiconductor module, with an extra-high 30A rated current for use in inverter systems of home appliances, will be available in February 2023. Power semiconductors capable of efficiently converting electric power to aid in the realization of a low-carbon world are in high demand. The compact module will allow the SLIMDIPTM series to meet a broader range of power and size requirements for inverter units, specifically by simplifying and downsizing systems for multifunctional and sophisticated products such as air conditioners, washing machines, and refrigerators.

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the Japan Semiconductors Market based on the below-mentioned segments:

 

Japan Semiconductors Market, By Devices

• Discrete Semiconductors
• Optoelectronics
• Sensors
• Integrated Circuits
• Others

 

Japan Semiconductors Market, By Components

• Memory devices
• Logic Devices
• Analog IC
• Memory protection unit
• Discrete Power Devices
• Multipoint control unit
• Sensors
• Others

 

Japan Semiconductors Market, By Type

• Intrinsic material
• Extrinsic material

 

Japan Semiconductors Market, By Node Size

• 5nm
• 5/7nm
• 7/10nm
• 14/16nm
• 20/22nm
• 28/32nm
• 40/45nm
• 65nm
• 90nm
• 130nm
• 180nm

 

Japan Semiconductors Market, By Material Type

• Silicon
• Germanium
• Gallium arsenide
• Silicon carbide
• Gallium Nitride
• Others

 

Japan Semiconductors Market, By Application

• Networking and Communication
• Data Processing
• Consumer Electronics
• Power Generation
• Electronic Components
• Others

 

Japan Semiconductors Market, By End-User

• Telecommunication
• Energy
• Electrical and Electronics
• Medical and Healthcare
• Automotive
• Aerospace
• Defense and Military
• Government
• Others