Japan Logic Integrated Circuit (IC) Market Market Size (2024 - 2029)

The Japan Logic Integrated Circuit market is poised for growth, driven by the increasing demand for smaller, more efficient, and portable devices such as smartphones, tablets, and electric vehicles. The market's expansion is further supported by government initiatives offering financial incentives to attract foreign semiconductor manufacturers to establish production facilities in Japan. Despite these positive trends, the market faces challenges related to the variability in the manufacturing processes of advanced technology nodes and the performance of devices using these integrated circuits.

Market Size of Japan Logic Integrated Circuit (IC) Industry

Japan Logic Integrated Circuit (IC) Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) 6.07 %
Market Concentration Medium

Major Players

Japan Logic Integrated Circuit (IC) Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Logic Integrated Circuit (IC) Market Analysis

The Japan Logic Integrated Circuit Market is expected to register a CAGR of 6.07% during the forecast period.

Logic semiconductors are used to process digital data to control the operation of electronic systems. Digital circuits are usually built from small microelectronic circuits called logic gates. Logic gates form the building blocks of digital systems.

With miniaturization trends, devices are becoming smaller, more power-efficient, and more portable. However, battery life, efficiency, and cost present significant issues in portable devices. In such devices, including tablets and laptops, logic is often used for battery charging and discharging blocks and to provide standby mode, power-down, and start-up control sequences.

Moreover, the proliferation of smartphones and tablets in the country, coupled with the growing demand for electric vehicles, are among the key drivers for the market. For instance, the monthly domestic shipment volume of smartphones in Japan reached around 930 thousand units in December 2022 (as per JEITA). In mobile devices, logic provides multiplexing, buffering, and level-translation functions for the baseband, RF interfaces, memory, and other peripherals.

Also, Japan's government is offering financial aid to encourage foreign chip makers to build plants in Japan, providing a strong impetus for 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 Logic Integrated Circuit (IC) Industry Segmentation

A logic IC is a semiconductor device that implements a basic logical operation performed on one or more digital input signals.

The Japan logic integrated circuit (IC) market is segmented by type (logic standard, MOS special purpose logic), product type (ASIC, ASSP, PLD), and application (consumer electronics, automotive, IT & telecommunications, manufacturing & automation). The report offers the market size in value terms in USD for all the abovementioned segments.

By Type
Logic Standard
MOS Special Purpose Logic
By Product Type
ASIC
ASSP
PLD
By Application
Consumer Electronics
Automotive
IT & Telecommunications
Manufacturing and Automation
Other End-user Industries (Healthcare, Aerospace & Defense, etc.)
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Japan Logic Integrated Circuit (IC) Market Size Summary

The Japan Logic Integrated Circuit (IC) Market is poised for significant growth, driven by the increasing demand for miniaturized, power-efficient, and portable devices. Logic semiconductors, which are integral in processing digital data and controlling electronic systems, are experiencing heightened demand due to the proliferation of smartphones, tablets, and electric vehicles. The government's financial incentives to attract foreign chip manufacturers, such as subsidies for semiconductor plants, further bolster market expansion. Despite challenges in modern IC technology, including variability in manufacturing processes and operational conditions, the market continues to thrive with advancements in CMOS technology, which is widely used in microprocessors, microcontrollers, and various analog circuits.

The automotive industry's shift towards electrification and smart technologies is a significant contributor to the market's growth. The increasing integration of semiconductor chips in vehicles for functions like advanced driver assistance systems (ADAS) and autonomous driving features underscores the rising demand for logic ICs. Japan's regulatory advancements, such as permitting Level 4 Autonomous Vehicles, support this trend. The competitive landscape is marked by the presence of major vendors engaging in mergers, acquisitions, and partnerships to enhance market penetration. Notable companies like Renesas Electronics, ROHM Semiconductor, and Kioxia Holdings are actively involved in initiatives to advance semiconductor technology and production, further solidifying Japan's position in the global logic IC market.

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Japan Logic Integrated Circuit (IC) Market Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitutes

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Logic Standard

      2. 2.1.2 MOS Special Purpose Logic

    2. 2.2 By Product Type

      1. 2.2.1 ASIC

      2. 2.2.2 ASSP

      3. 2.2.3 PLD

    3. 2.3 By Application

      1. 2.3.1 Consumer Electronics

      2. 2.3.2 Automotive

      3. 2.3.3 IT & Telecommunications

      4. 2.3.4 Manufacturing and Automation

      5. 2.3.5 Other End-user Industries (Healthcare, Aerospace & Defense, etc.)

Japan Logic Integrated Circuit (IC) Market Market Size FAQs

The Japan Logic Integrated Circuit (IC) Market is projected to register a CAGR of 6.07% during the forecast period (2024-2029)

Renesas Electronics Corporation, Sony Semiconductor Solutions Group, ROHM Semiconductor, Mitsubishi Electric Corporation and Toshiba Corporation are the major companies operating in the Japan Logic Integrated Circuit (IC) Market .

Japan Logic Integrated Circuit (IC) Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)