Market Trends of Japan Analog IC Industry
General Purpose IC (Power Management) Sub-segment is Expected to Hold a Considerable Share
- An integrated circuit that regulates the host system's power usage is known as a power management IC (PMIC). PMICs are used to generate an effective power supply in battery-operated portable electronics, including laptops, tablets, and smartphones.
- According to Business Insider, Japan has the third-largest economy in the world. According to the International Monetary Fund, this year will see the country's economy develop more quickly than it has at any point in the previous 12 years. Japan's expanding economy is promoting a thriving mobile sector. In 2022, 85% of the population in Japan used smartphones, and this percentage is expected to rise. Such an increase in smartphone use will drive market growth for power management ICs during the forecast period.
- Besides consumer electronics, PMICs are extremely utilized in automotive electronics. Japan has the third-largest automotive-producing industry. According to METI Japan, in 2022, 6.57 million passenger cars were produced in Japan. This growing trend may drive the market's growth for PMIC during the forecast period.
- In November 2022, Renesas Electronics Corporation revealed a cutting-edge vehicle power management IC (PMIC) for use in next-generation automotive camera applications. The RAA271082 is a flexible multi-rail power IC that complies with ISO-26262. It has a primary high-voltage synchronous buck regulator, two secondary low-voltage synchronous buck regulators, and a low-voltage LDO regulator.
- The company announced to acquire Steradian Semiconductors Private Limited on August 2022. The company wants to provide comprehensive automotive radar systems that integrate object identification software, power management ICs (PMICs), and timing devices with ADAS SoCs (System-on-Chips) for processing radar information. Together, these technologies may accelerate the development of new products and simplify the design of automotive radar systems.
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Application-specific IC for Automotive is Expected to Hold a Considerable Share
- Application-specific ICs are designed for automotive end equipment, such as the infotainment systems that include information and passenger electronics systems. In addition, the ICs are also offered to the factory-installed GPS in automotive.
- The nation's major demand for analog ICs comes from the automobile industry. The development of autonomous cars is also boosting demand for analog integrated circuits. Some other trends that drive the application of analog ICs are increased connectivity, 5G capability, OTA updates, and more AI. In terms of increased connectivity, IoT is driving connected vehicles, and the need for onboard car communication devices is increasing as it allows quick access to data through smartphones.
- For instance, current law in Japan permits self-driving vehicles up to level 3, and commercial vehicles have been equipped with functions up to that level. In August 2022, the Japanese government passed a bill to introduce new rules for next-generation mobility, like unmanned self-driving vehicles, automated delivery robots, and electric kick scooters. Under the revised law, a licensing system would be introduced for operators of transport services using unmanned vehicles with Level 4 autonomy, which requires no driver in the remotely monitored vehicle within a limited area.
- According to JAMA, bus production increased 116.58% in the country between January 2022 - January 2023 compared to passenger cars and trucks. This growing trend will likely accelerate the market's growth for analog IC during the forecast period.
