Japan Integrated Circuit (IC) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 41.70 Billion |
| Market Size (2029) | USD 60.03 Billion |
| CAGR (2024 - 2029) | 7.56 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Japan Integrated Circuit (IC) Market Analysis
The Japan Integrated Circuit Market size is estimated at USD 41.70 billion in 2024, and is expected to reach USD 60.03 billion by 2029, growing at a CAGR of 7.56% during the forecast period (2024-2029).
An integrated circuit (IC) refers to a small semiconductor-based electronic device consisting of fabricated transistors, resistors and capacitors. ICs are the building blocks of most electronic devices and equipment.
- The introduction and adoption of emerging technologies such as the Internet of Things (IoT) are expected to propel the market growth. For instance, as per the findings of a survey by Microsoft published in February 2022, in Japan, there are more IoT projects in the usage stage (26%) in the manufacturing sector than in other sectors, mainly focused on bolstering automation. With the growing proliferation of IoT, the number of connected devices will grow significantly in the coming years. These devices will need ICs with embedded technology to communicate, sense, or interact with the environment.
- Further, according to Japan Automobile Importers Association, the number of imported electric vehicles sold in the country during 2022 rose 65% from a year earlier to reach a record 16,464 units. The electrification of vehicles and automation of industrial equipment in the country stimulate demand for analog ICs that can maintain high reliability over the long term in low- and high-temperature environments.
- Moreover, Japan's government is offering financial aid to encourage foreign chip makers to build plants in Japan, which provides a strong impetus to the market growth. For instance, in June 2022, Japan's Ministry of Economy, Trade and Industry (METI) announced plans to offer subsidies worth up to JPY 476 billion (USD 3.5 billion) for a semiconductor plant being built in Kumamoto Prefecture by Taiwan Semiconductor Manufacturing Co. (TSMC), Sony Group and Denso. Total investment in the plant was expected to reach around USD 8.6 billion, with Japan's government supporting about 40% of the costs.
- However, modern IC technology has many design challenges. There is significant variability in the manufacturing process for advanced technology nodes. The actual operation of many devices on advanced ICs also results in variability, which manifests as changes in operating voltage, operating temperature, and performance.
Japan Integrated Circuit (IC) Market Trends
Memory Segment to Acquire a Significant Share After Logic
- Currently, DRAM is finding widespread use in digital electronics where low-cost and high-capacity memory is required. One of the largest applications for DRAM is the main memory in modern computers and graphics cards. It is also commonly used in many portable devices and video game consoles.
- Though Japan is still at an early stage in its 5G deployment, since the start of 2021, its mobile operators have been accelerating their 5G rollout. For instance, SoftBank aimed to deploy over 50,000 5G base stations and targeted 90% population coverage by the end of March 2022. Similarly, NTT Docomo aims to cover 90% of the Japanese population by March 2024, up from its previous goal of 80%.
- With the implementation of 5G, mobile devices will require more and faster DRAM, such as LPDDR5, to handle 5G-enabled multimedia applications and tasks. Also, the increased download speed and volumes associated with 5G will drive the need for faster and larger storage.
- A NAND flash chip retains data even when a device is turned off, unlike a DRAM chip which loses data when the power is off. NAND flash memories are becoming more popular due to their usage as solid-state drives (SSDs) and USB flash drives, called flash storage devices. Also, due to work-from-home trends, NAND flash consumption dramatically increased with the demand for PCs and smartphones.
- Moreover, in July 2022, Micron Technology announced that it had started shipping its most advanced NAND flash chip, which comprises 232 layers of memory cells that can support intense data use from consumer gadgets, cars, and data centers.
Industrial Application to Grow at a Significant Rate
- Industry 4.0 is transforming the way companies manufacture their products. Industry 4.0 refers to smart and connected production systems designed to sense, predict, or interact with the physical world to make decisions that support production in real-time. It can potentially increase productivity, energy efficiency, and sustainability in manufacturing.
- According to JARA, In 2023, Japan's production of manipulators and robots was valued at about JPY 891.56 billion (USD 5.51 billion) , marking a 12.7% decrease from the previous year. The country manufactured approximately 220.58 thousand units during this period.
- Integrated circuits are used extensively in robots and their controllers. For instance, memory components form the core elements of every industrial robot. Memory chips play an essential role in the controller and sensor functionalities and data logging embedded in the robotic solutions for different industries.
- Moreover, analog and mixed-signal ICs play important roles in industrial automation and process control applications. In response to the growing needs of industrial system developers, in recent times, analog ICs vendors have continued to roll out new chips designed to meet a range of industrial design needs, including factory robotics, sensors for machine condition monitoring, and advanced motor systems.
- Also, the Connected Industries strategy was launched in Japan to promote smart factories. Consequently, the Connected Industries Tax System (IoT Tax System) was established to offer financial support for the introduction of systems, sensors, robots, and other equipment needed to improve productivity through data collaboration and utilization, which also helps to drive the market demand from the sector in the country.
Japan Integrated Circuit (IC) Industry Overview
The competitive rivalry in the Japan Integrated Circuit (IC) Market is moderately high, as the market comprises many large vendors that command a prominent market share besides having access to well-established distribution networks. Major vendors in the market studied are involved in both M&A activities and partnerships to gain higher penetration and market share. Some of the prominent vendors in the market include Renesas Electronics Corporation, ROHM Semiconductor, Kioxia Holdings Corporation, Micron Technology INC., etc.
In April 2023 - Renesas Electronics announced that it had produced its first microcontroller based on advanced 22-nm process technology. The first chip produced on the new 22-nm process presents an extension to the company's RA family of 32-bit Arm Cortex-M microcontrollers.
In November 2022 - Micron Technology started the mass production of its new high-capacity, low-power 1-beta dynamic random access memory (DRAM) chips at its plant in Hiroshima, Japan.
Japan Integrated Circuit (IC) Market Leaders
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Renesas Electronics Corporation
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Sony Semiconductor Solutions Group
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ROHM Semiconductor
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Kioxia Holdings Corporation
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Micron Technology INC.
*Disclaimer: Major Players sorted in no particular order
Japan Integrated Circuit (IC) Market News
- April 2023: Japan's industry ministry revealed its decision to provide state-backed chip maker Rapidus an additional JPY 300 billion (USD 2.27 billion) in funding to establish a semiconductor plant on the northern island of Hokkaido.
- March 2023: Kioxia Corporation, in collaboration with Western Digital Corp., introduced its newest 3D flash memory technology. Using advanced scaling and wafer bonding technologies, the 3D flash memory offers high capacity, performance, and reliability at a compelling cost, which makes it highly suitable for meeting the needs of exponential data growth across a wide range of market segments.
Japan Integrated Circuit (IC) Market Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness- Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Penetration of Consumer Electronics including Smartphones and Tablets
5.1.2 Continuous Evolution Of Mega Trends such as Cloud Computing, IoT and AI
5.1.3 Rising Capital Spending by Fabs to Increase Production Capacities
5.2 Market Challenges
5.2.1 Complex Fabrication Process owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Analog
6.1.1.1 General-purpose IC
6.1.1.2 Application-specific IC
6.1.2 Logic
6.1.2.1 TTL (Transistor Transistor Logic)
6.1.2.2 CMOS (Complementary Metal Oxide Semiconductor)
6.1.2.3 Mixed-Signal IC
6.1.3 Memory
6.1.3.1 DRAM
6.1.3.2 Flash
6.1.3.3 Other Types
6.1.4 Micro
6.1.4.1 Microprocessors (MPU)
6.1.4.2 Microcontrollers (MCU)
6.1.4.3 Digital Signal Processors
6.2 By Application
6.2.1 Consumer Electronics
6.2.2 Automotive
6.2.3 IT & Telecommunications
6.2.4 Industrial
6.2.5 Other Applications
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Renesas Electronics Corporation
7.1.2 Sony Semiconductor Solutions Group
7.1.3 ROHM Semiconductor
7.1.4 Kioxia Holdings Corporation
7.1.5 Micron Technology INC.
7.1.6 Sanken Electric Co., LTD.
7.1.7 Mitsubishi Electric Corporation
7.1.8 NXP Semiconductors N.V.
7.1.9 Analog Devices INC.
7.1.10 Infineon Technologies AG
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Japan Integrated Circuit (IC) Industry Segmentation
An integrated circuit (IC) is a semiconductor wafer on which numerous tiny resistors, capacitors, and transistors are fabricated. ICs can function as amplifiers, oscillators, timers, counters, computer memories, or microprocessors.
The Japan Integrated Circuit (IC) Market is segmented by type (analog (general-purpose IC, application-specific IC), logic (TTL (Transistor Transistor Logic), CMOS (complementary metal oxide semiconductor), mixed-signal IC), memory (DRAM, flash), micro (microprocessors (MPU), microcontrollers (MCU), digital signal processors )) and application (consumer electronics, automotive, IT & telecommunications, industrial)). The report offers market forecasts and size in value (USD) for all the above segments.
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Japan Integrated Circuit (IC) Market Market Research Faqs
How big is the Japan Integrated Circuit (IC) Market ?
The Japan Integrated Circuit (IC) Market size is expected to reach USD 41.70 billion in 2024 and grow at a CAGR of 7.56% to reach USD 60.03 billion by 2029.
What is the current Japan Integrated Circuit (IC) Market size?
In 2024, the Japan Integrated Circuit (IC) Market size is expected to reach USD 41.70 billion.
Who are the key players in Japan Integrated Circuit (IC) Market ?
Renesas Electronics Corporation, Sony Semiconductor Solutions Group, ROHM Semiconductor, Kioxia Holdings Corporation and Micron Technology INC. are the major companies operating in the Japan Integrated Circuit (IC) Market .
What years does this Japan Integrated Circuit (IC) Market cover, and what was the market size in 2023?
In 2023, the Japan Integrated Circuit (IC) Market size was estimated at USD 38.55 billion. The report covers the Japan Integrated Circuit (IC) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Integrated Circuit (IC) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Integrated Circuit (IC) Market Industry Report
Statistics for the 2024 Japan Integrated Circuit (IC) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Integrated Circuit (IC) analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
