Japan Semiconductor Device Market by Application, Device and Material - Forecast and Analysis 2024-2028

Japan Semiconductor Device Market Forecast 2024-2028 

The Japan Semiconductor Device Market size is forecast to increase by USD 8.48 Billion, at a CAGR of 8.22% between 2023 and 2028. The market's growth hinges on various factors. First, there's a rising demand for high-power density devices, driven by advancements in technology and consumer needs for more powerful and compact solutions. Second, strategic collaborations among market participants, including manufacturers, suppliers, and research institutions, are fostering innovation and driving product development. Third, government initiatives play a crucial role by providing support and incentives for the development of these devices, encouraging investment and technological progress in the industry. These combined efforts contribute to the market's growth trajectory, fostering a dynamic environment of collaboration, innovation, and technological advancement in this device sector.

Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 15 market companies, including Infineon Technologies AG, Intel Corp., Kyocera Corp., Micron Technology Inc., Mitsubishi Electric Corp., NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., Rapidus Corp., Renesas Electronics Corp., ROHM Co. Ltd., Samsung Electronics Co. Ltd., Screen Holdings Co. Ltd., Sharp Corp., Shindengen Electric Manufacturing Co. Ltd., STMicroelectronics International NV, Sumitomo Corp., and Toshiba Corp. Additionally, Advanced Micro Devices Inc. offers semiconductor devices such as a comprehensive multi-node lineup of FPGAs providing advanced features, namely, low-power, high-performance, and high-value chips for industrial and military purposes.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market in Japan is driven by Artificial Intelligence (AI) advancements, Autonomous driving technologies, and the rapid expansion of the Internet of Things (IoT). Emerging trends like 5G connectivity, Industry 4.0 integration, and the surge in Wearable devices are shaping market growth. Challenges include ensuring the reliability of Silicon carbide (SiC) MOSFETs and addressing power consumption issues in LED technology. Additionally, meeting the demand for Advanced driver assistance systems (ADAS) and Electric vehicles (xEV) poses challenges amid technological evolution. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market  Driver

Increasing demand for high-power density devices is notably driving the market. The emphasis on achieving higher efficiency in power systems is increasing. In addition, this can be achieved through the implementation of SiC and GaN power semiconductor devices. Moreover, wide-bandgap (WBG) semiconductors, such as GaN power semiconductors, can operate at much higher temperatures of up to 500C compared with conventional Si semiconductors.

Moreover, high-power density devices, including electric and hybrid vehicles, international material data systems (IMDS), photovoltaic inverters, and uninterruptible power supply (UPS) and power supply systems, primarily use semiconductors. In addition, the performance of high-power density appliances is measured in terms of low switching and conduction losses, high blocking voltage, high operating temperature, high switching frequency, and stable electrical characteristics over a wide temperature range. Therefore, it is positively impacting the semiconductor device market in Japan. Hence, such factors are driving the market during the forecasting period.

Significant Market Trends

Growing investments in 5G technology in Japan is an emerging trend in the market. The 5G mobile network refers to the most recent mobile wireless technology, which is an upgrade to the 4G mobile network. In addition, this technology improves download speeds, enables networks to connect to a variety of appliances, and reduces response times.

Moreover, Japan is investing in this technology to provide its citizens with superior and cutting-edge services, with Industry 4.0 as the future of manufacturing, with the implementation of a cyber-physical system (CPS). In addition, adopting 5G technology will assist Japan in achieving broader macroeconomic benefits. Thus telecommunication companies and businesses are heavily investing in 5G technology in Japan to meet growing consumer demand. Therefore, it is positively impacting the semiconductor device market in Japan. Hence, such factors are driving the market during the forecast period.

Major Market Restrain

The high cost of semiconductor devices is a major challenge hindering the market. The high manufacturing cost of semiconductor devices is a key factor that impedes their large-scale adoption. In addition, the high manufacturing cost is because of the high material and substrate costs of SiC and GaN. Therefore, SiC and GaN power semiconductor appliances can cost approximately four to five times more than Si appliances.

Moreover, the cost of Si wafers with a diameter of 125 mm can be as low as USD19.02 per wafer. In addition, the cost of 100 mm SiC wafers can be more than USD 2,000. The price of 100 mm GaN wafers is approximately USD1,800. Furthermore, the substrate material used in SiC power semiconductor appliances is more than 30%, whereas it is only limited to 7% in Si semiconductor devices. Hence, such factors are hindering the market during the forecast period.

Market Segmentation by Application, Device, and Material 

The market in Japan is at the forefront of cutting-edge technologies like Artificial Intelligence (AI) and Autonomous driving systems, driving innovation in the Automotive and Industry 4.0 sectors. With a focus on R&D and Electronics, Japan leads in developing advanced Semiconductor chips and Integrated circuits for applications such as Collision detection systems and Navigation control in vehicles. Moreover, Japan's semiconductor industry plays a crucial role in Aviation, Healthcare, Smart homes, and Smart metering systems powered by Power semiconductors and Time-of-Flight (iToF) modules. The market also supports the rapid growth of Electric vehicles (xEV) and the Industrial Internet of Things (IIoT) through innovations in Silicon carbide (SiC) MOSFETs, and LED technology. Furthermore, Japan's expertise in Data centers and Semiconductor wafers fuels advancements in Smart farms and Smart logistics, enabling efficient operations and improved productivity. The country's focus on Advanced driver assistance systems (ADAS) and Industrial robots underscores its commitment to shaping the future of Semiconductor devices in diverse industries, especially in the thriving Automotive market.

By Application

The consumer electronics segment is estimated to witness significant growth during the forecast period. The consumer electronics segment is expected to witness a high fuelled by the growing adoption of smartphones, tablets, laptops, smart televisions, and gaming consoles, which are a major part of consumer electronics in Japan. In addition, these devices play a crucial role in consumer electronics, powering and enabling various functions in devices. For example, there were around 109 million smartphone users in Japan in 2022.

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The consumer electronics segment was the largest segment and was valued at USD 6.54 billion in 2018. Moreover, smartphones include power amplifiers and switches that generally use gallium arsenide (GaAs). In addition, with the increasing global smartphone shipments, the demand for GaAs components will also rise in the coming years. In addition, most of the content in a handset is made of silicon, but power amplifiers and switches use GaA devices. Furthermore, prominent smartphone vendors, such as Apple and Samsung Electronics, are increasingly using GaAs-based amplifiers and switches in their new products. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Segmentation By Device

The several advantages offered by the PMIC segment will increase the market growth. Integrated circuits for power management (PMICs) are utilized for the power management of systems. In addition, to extending the battery life of devices, they minimize the need for large and high-capacity batteries, which helps reduce the size of devices. Moreover, PMICs include voltage regulators, motor control integrated circuits (ICs), microprocessor supervisory ICs, battery management ICs, and integrated application-specific standard product (ASSP) power management ICs, among many others. Furthermore, having the ability to perform multiple functions on a single chip, these ICs reduce the number of components required for a project, thereby reducing the number of components on circuit boards.  Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Global Market Customer Landscape

Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AOI ELECTRONICS CO. LTD: The company offers semiconductor devices such as semiconductor integrated circuits, and semiconductor packaging and testing services.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

• Application Outlook
  • Consumer electronics
  • Communications
  • Automotive
  • Medical devices
  • Others
• Device Outlook
  • PMIC
  • Microchips
  • RFID
• Material Outlook
  • Silicon
  • Germanium
  • Gallium arsenide
  • Others

Market Analyst Overview

The market in Japan is a dynamic landscape driven by cutting-edge technologies and innovative solutions. Artificial Intelligence (AI) and Autonomous driving are transforming the automotive sector, with Semiconductor materials like Silicon carbide (SiC) MOSFETs powering these advancements. The Internet of Things (IoT) is expanding rapidly, fueling demand for Wearables, Data centers, and Smart homes. Companies like Toshiba Electronic Devices and Storage Corporation, Onsemi, Analog Devices, and Sony Semiconductor Solutions Corporation are at the forefront, developing Semiconductor wafers and Advanced driver assistance systems (ADAS). Moreover, in aviation and healthcare, Semiconductor chips and Image sensors play critical roles in Infotainment systems, Navigation control, and Medical devices. The rise of Smart farms and Smart logistics relies on Semiconductor-based sensors and IoT devices for efficient operations and real-time monitoring. Electric vehicles (xEV) are driving the demand for Silicon carbide (SiC) based power modules, contributing to the Industrial Internet of Things (IIoT) and Green initiatives to reduce greenhouse gas emissions.

Furthermore, Japan's semiconductor industry, as reflected by organizations like the Japanese Electronics and Information Technology Industries Association (JEITA) and Semiconductor Equipment Association of Japan (SEAJ), forecasts robust growth in semiconductor manufacturing, memory semiconductor products, and electric vehicle semiconductor market. This growth is propelled by innovation in Logic Devices, Analog IC, Memory devices, and Discrete Power Devices, making Japan a global leader in semiconductor technology. The market in Japan is marked by its technological prowess and innovation across various sectors. In the automotive industry, Collision detection systems, Backup cameras, Adaptive cruise control, and Emergency braking systems rely on advanced Semiconductor chips and Radar sensors for enhanced safety features. LED light elements and Smart metering systems contribute to energy-efficient solutions powered by Semiconductors.

Market Scope
Report Coverage	Details
Page number	158
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 8.22%
Market Growth 2024-2028	USD 8.48 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	7.43
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Advanced Micro Devices Inc., AOI ELECTRONICS CO. LTD., Infineon Technologies AG, Intel Corp., Kyocera Corp., Micron Technology Inc., Mitsubishi Electric Corp., NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., Rapidus Corp., Renesas Electronics Corp., ROHM Co. Ltd., Samsung Electronics Co. Ltd., Screen Holdings Co. Ltd., Sharp Corp., Shindengen Electric Manufacturing Co. Ltd., STMicroelectronics International NV, Sumitomo Corp., and Toshiba Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the Japanese semiconductor market between 2023 and 2028
• Precise estimation of the market  size and its contribution to the Japanese semiconductor market on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Japan
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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