Japan - Country Commercial Guide
Semiconductors

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2020-10-30

Table

 

2017

2018

2019

2020 estimated

Total Market Size (Japan)

36,595

39,961

35,993

34,400

Growth Rate

13.3%

9.2%

-9.9%

-4.4%

Exchange Rates

112.1

110.4

108.4

106.8

Units: $ millions
Source: https://www.jeita.or.jp/japanese/stat/wsts/docs/20200609WSTS.pdf

Overview 

2019 semiconductors sales in Japan decreased by 9.9%, having hitting a peak of electronic device sales, such as smartphone sales and data center sales, in addition to several external factors such as Brexit and global trade conflicts.  In particular, it is notable that semiconductor memory sales, which covers 30% of semiconductor sales, dramatically decreased due to a decline in the sale of smartphone displays, computer server/data storage equipment and electronic measuring instruments in 2019. These declines come as no surprise as they were predicted by the World Semiconductor Trade Statistics (WSTS) last year.  According to the WSTS, the Japanese semiconductor market declined from $40.0 million in 2018 to $35.9 million in 2019.

In addition to the 2019 reduction in demand , the research firm, Trend Force, announced in March 2020 that electronic industry market related to Television, Personal Computers, Display, Smartphone and Mobility related products, would also lower their 2020 forecast due to the COVID19. As Japan’s electronic products industry, which is the third largest in the world, is the most significant factor driving demand for sales of semiconductors to Japan, these estimates would suggest a decline of the semiconductor market in 2020.

Going forward, however, WSTS forecasts that the Japanese semiconductor market would increase from $34.4 million in 2020 to $35.5 million in 2021. The post-COVID19, “new normal” work and life style is expected to lead to a shift in a demand from the real physical world to the virtual online interactions which would lead to new types of demand generated by increased  teleworking, virtual meeting, data center and telemedicine etc.  These growth factors are expected to revive semiconductor demand toward 2021.  In addition to technologies related to the “new normal” lifestyle, promising sectors like 5G, industrial automation and AI are also expected to contribute to growing demand for semiconductors. Businesses that are on the forefront of new and emerging technologies requiring semiconductors will be able to compete in such a dynamic market.

Subsector – semiconductor manufacturing equipment Japan is globally ranked as the 4th market of semiconductor manufacturing equipment sales. Semiconductor Equipment Association of Japan (SEAJ), the global industry association serving the manufacturing supply chain for the electronics industry (SEMI) and SEMI Japan, announced that 2019 semiconductor manufacturing equipment sales in Japan reached $6.2 billion and is expected to reach  $7.0 billion in 2020 and $7.9 billion in 2021.  SEAJ estimated that the data center related demand was expected to surge from 2020 to 2022 because the volume of data traffic would be incredibly increased due to teleworking and satellite offices etc., while it is estimated that the consumer product market would be downsized for a while. Along with consumer behavior in the new normal, revolution of work style, manufacturing, education and medical industries will be widely expected to lead new demand for semiconductor.

Opportunities

CEATEC Information Technology Trade Show

October 20-23, 2020

Makuhari Messe

SEMICON Japan

SEMI Japan announced to postopone SEMICON Japan 2020 to 2021


Web Resources

 

CS Japan Contact:

Ms. Atsuko Shimada, Commercial Specialist

Atsuko.Shimada@trade.gov