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Semiconductors in Japan - statistics and facts

Semiconductors play an increasingly important role for economies around the world. While Japan has long operated as a manufacturer and major exporter of semiconductor equipment, the recent global chip shortage showed that the country was vulnerable to supply chain disruptions. Since semiconductors are used in a wide variety of important technological products, the semiconductor industry is considered essential for economic success and even has become an issue of national security in Japan. Although the country accounted for more than half of the global chip production in the late 1980s, it was not able to maintain its pre-eminent position due to a variety of factors, such as the relocation of facilities to overseas production sites, the rise of other competitors, including Taiwan and South Korea, a focus on vertically integrated production models, and a lack of public funding. Despite these circumstances, Japan continues to be a major player on the global stage and has formulated ambitious plans to improve its position in the coming years.

The current state of the semiconductor industry

The size of the Japanese semiconductor market amounted to about 48.2 billion U.S. dollars in 2022 and was expected to grow further in the coming years. Japan’s largest contribution to the global semiconductor industry in terms of added value lies in the area of equipment. As worldwide investments in manufacturing capacities increase, the Japanese manufacturing equipment industry is expected to profit from the accompanying demand for machinery. Although Japan lacks high-end domestic production capabilities, it is home to many prominent technology companies that engage in the semiconductor business, such as Kioxia, Tokyo Electron, Renesas Electronics, Sony Semiconductor Solutions, Rohm, and Toshiba.

Reviving the industry

Both the government and the private sector have made efforts to revive and improve domestic production capabilities. In June 2021, the Ministry of Economy, Trade and Industry (METI) published a strategy paper that emphasized the importance of semiconductors for the economy and economic security. In November of the same year, the Japanese government decided to support the semiconductor industry with a 774-billion-yen package, part of which will be used for the construction of a new foundry by Taiwan Semiconductor Manufacturing Co. (TSMC) in Kumamoto Prefecture. In 2023, the government also increased its financial support for a new factory by Rapidus Corporation to a total of 330 billion yen. In addition, Japan aims to become a world leader in power semiconductors, which are seen as a key in reducing energy consumption. A project in this regard, which involves the cooperation of Rohm, Toshiba, and Denso, is led by the New Energy and Industrial Technology Development Organization (NEDO). Among other aims, the project seeks to halve the energy loss of power management devices by 2030.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 19, 2023

Key insights

Semiconductor market size
48.2bn U.S. dollars
Billings of the semiconductor capital equipment industry
7.9bn U.S. dollars
Leading semiconductor company based on revenue
Tokyo Electron
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Editor’s Picks Current statistics on this topic

Leading semiconductor companies in Japan 2023, based on revenue (in billion U.S. dollars)

Semiconductors

Leading semiconductor businesses Japan 2023, based on revenue

Semiconductor market size in Japan from 2015 to 2022 with a forecast until 2024 (in billion U.S. dollars)

Semiconductors

Semiconductor market size in Japan 2015-2024

Monthly semiconductor sales in Japan from January 2016 to November 2023 (in billion U.S. dollars)

Semiconductors

Monthly semiconductor sales Japan 2016-2023

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