Japan Semiconductor Device Market Research Report Information By Device Type (Discrete Semiconductors, Optoelectronics, Sensors, Integrated Circuits, and Analog, (Logic, Memory, and Micro (Microprocessors (MPU), Microcontrollers (MCU), and Digital Signal Processors))), By End-User Vertical (Automotive, Communication (Wired and Wireless), Consumer Electronics, Industrial, Computing/Data Storage, and Other End-user Verticals) –and Japan Industry Forecast Till 2032

Japan Semiconductor Device Market Overview

Japan's Semiconductor Device Market Size was valued at USD 48.2 Billion in 2022. The Semiconductor Device market industry is projected to grow from USD 50.99 Billion in 2023 to USD 80.06 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2024 - 2032). The increasing use of artificial intelligence (AI) and 5G technology and the expanding use of Internet of Things (IoT) devices are the main market drivers anticipated to propel the Semiconductor Device market in Japan.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Japan Semiconductor Device Market Trends

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  Growing demand in the automotive industry is driving the market growth

  
  

The Japan Semiconductor Device market CAGR is expanding because semiconductor chips are becoming essential to modern cars because of their wide range of automotive uses. Automobile chips range in size and form discrete components with a single transistor to sophisticated integrated circuits operating complex systems. In addition, the LED light components in automobiles contain chips. Light-emitting chips comprise every single diode found in an LED light unit. A substantial portion of chips in contemporary cars are related to the LED headlights alone. It takes control units for the headlights to work as well. The demand for semiconductors in Japan has increased due to the growing requirement for advanced driver assistance systems (ADAS) and improved automobile safety. Semiconductor technology integration enables intelligent features, including airbag deployment, lane change aid, adaptive cruise control, backup cameras, and emergency braking systems. Furthermore, ADAS encompasses many sensor types, including radar and lidar for object identification in low light or fog, ultrasonic sensors for short-range functions like parking assistance, and image and camera sensors for vision-based features.

Furthermore, the manufacturing processes businesses use are changing due to Industry 4.0. Industry 4.0 describes the networked and intelligent production systems intended to perceive, anticipate, or engage with the physical environment and make production-supporting choices in real time. In the manufacturing sector, it can boost sustainability, energy efficiency, and productivity. The Industrial Internet of Things, or (IIoT), is an essential component of Industry 4.0 and refers to the expansion and deployment of the IoT in industrial sectors and applications. Computing, networking, and sensing are the fundamental core competencies of semiconductors for the (IIoT). For example, sensors are widely employed in various industries to monitor systems, assets, equipment, and overall performance in the context of (IIoT). Thus, driving the Semiconductor Device market revenue.

Japan Semiconductor Device Market Segment Insights

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  Semiconductor Device Device Type Insights

  
  

The Japan Semiconductor Device market segmentation, based on device type, includes discrete semiconductors, optoelectronics, sensors, integrated circuits, and analog (logic, memory, and micro (microprocessors (MPU), microcontrollers (MCU), and digital signal processors)). The discrete semiconductors segment mostly dominated the market. Discrete semiconductors are crucial for engine control units, airbag systems, power steering, and advanced driver-assistance systems (ADAS). Discrete components are needed for power conversion, signal processing, and display operations in TVs, cellphones, audio equipment, and household appliances. Discrete semiconductors, among other renewable energy options, are used in smart grids and solar inverters for effective power conversion and control.

The optoelectronics category is anticipated to be the fastest growing. Optical communication systems rely heavily on optoelectronic components, including photodetectors, optical fibers, and lasers. Japan, a nation that advances technology above all else, depends largely on these gadgets for high-speed data transfer in telecom networks. Japan is renowned for its laser technology innovations. Applications for lasers include industrial processes, scientific research, and medical equipment.

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  Semiconductor Device End-User Vertical Insights

  
  

Based on end-user verticals, the Japan Semiconductor Device market segmentation includes Automotive, Communication (Wired And Wireless), Consumer Electronics, Industrial, Computing/Data Storage, and Other End-User Verticals. The automotive category generated the most income. Semiconductor devices, such as processing units, cameras, radar systems, and sensors, are essential to developing and applying ADAS technology. These technologies support collision avoidance systems, lane departure warning, and adaptive cruise control. Semiconductor devices are essential to the electrification of automobiles because they are used in control units, battery management systems, and power electronics. The market for semiconductor solutions in this area is expanding along with the need for electric vehicles.

The consumer electronics category is expected to be the quickest rate. The functionality and performance of laptops and personal computers depend heavily on semiconductor components such as memory modules, graphics processing units (GPUs), and central processing units (CPUs). Semiconductor components are used for data processing, communication, and control in Internet of Things (IoT) enabled smart home appliances, speakers, and thermostats.

Figure 1: Japan Semiconductor Device Market, by End-User Vertical, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Semiconductor Device Country Insights

Japan has a sizable, tech-savvy population with considerable disposable income, which drives a consistent market for TVs, wearable technology, cell phones, and other consumer electronics. Increased demand results in higher consumption of various semiconductors, such as memory chips, logic ICs, sensors, and microcontrollers. The need for specific chips is further driven by the ongoing innovation of Japanese companies in fields such as AR/VR, smart home solutions, and personalized gadgets.

Japan Semiconductor Device Key Market Players & Competitive Insights

The market for Semiconductor Devices is expected to grow even more due to major players in the industry making significant R&D investments to extend their lines of equipment. Alongside these significant market developments, market participants engage in various strategic actions to broaden their market reach. These activities include introducing new equipment types, contractual agreements, mergers and acquisitions, increased investments, and cooperation with other organizations. The Semiconductor Device sector needs to provide affordable products to grow and thrive in a more cutthroat and dynamic market.

Major players in the Japan Semiconductor Device market are attempting to increase market demand by investing in research and development operations including Intel Corporation, Qualcomm Incorporated, STMicroelectronics NV, Nvidia Corporation, Kyocera Corporation, Micron Technology Inc., Xilinx Inc., Texas Instruments Inc., NXP Semiconductors NV, Toshiba Corporation, Fujitsu Semiconductor Ltd, Rohm Co. Ltd, SK Hynix Inc., Samsung Electronics Co. Ltd, and Taiwan Semiconductor Manufacturing Company (TSMC) Limited.

Key Companies in the Japan Semiconductor Device market include

• Intel Corporation


• Qualcomm Incorporated


• STMicroelectronics NV


• Nvidia Corporation


• Kyocera Corporation


• Micron Technology Inc.


• Xilinx Inc.


• Texas Instruments Inc.


• NXP Semiconductors NV


• Toshiba Corporation


• Fujitsu Semiconductor Ltd


• Rohm Co. Ltd


• SK Hynix Inc.


• Samsung Electronics Co. Ltd


• Taiwan Semiconductor Manufacturing Company (TSMC) Limited

Japan Industry Developments

November 2022: A fee-based service on its edge AI sensing platform, AITRIOS, was introduced by Sony Semiconductor Solutions Corporation. The service is intended to simplify creating and executing sensing solutions by utilizing edge devices like AI cameras. These industry advancements will also propel the nation's researched market.

March 2022: Showa Denko K.K. manufactures silicon carbide single crystal wafers (SiC wafers) with a diameter of 6 inches (150 mm). SiC epitaxial wafers*1 are made from these wafers as raw materials, analyzed, and integrated into SiC-based power semiconductors (SiC power semiconductors).

Japan Semiconductor Device Market Segmentation

Semiconductor Device Device Type Outlook

• Discrete Semiconductors


• Optoelectronics


• Sensors


• Integrated Circuits


• Analog
  
  
  
  •  Logic
  
  
  • Memory
  
  
  • Micro
  
  
  
  


• Microprocessors (MPU)


• Microcontrollers (MCU)


• Digital Signal Processors

Semiconductor Device End-User Vertical Outlook

• Automotive


• Communication (Wired and Wireless)


• Consumer Electronics


• Industrial


• Computing/Data Storage


• Other End-user Verticals