Japan Semiconductor Device Market In Consumer Industry Market Size (2024 - 2029)

Japan Semiconductor Device Market Analysis

The Japan Semiconductor Device Market In Consumer Industry is expected to grow from USD 6.22 billion in 2024 to USD 8.28 billion by 2029, at a CAGR of 5.90% during the forecast period (2024-2029).

The increasing production of consumer electronics across the country further drives the demand in the studied market. According to METI (Japan), in 2022, the production value of the Japanese electronics industry increased by 0.2% compared to the previous year. As a result, the production value amounted to almost JPY 11 trillion (USD 0.069 trillion).

A semiconductor device is an electronic element that depends on the electronic properties of a semiconductor material for its function. Further, in the consumer industry, CPUs operating personal computers are made with semiconductors. Also, many digital consumer products, such as smartphones, digital cameras, televisions, refrigerators, washing machines, and LED bulbs, also use semiconductors.

Vendors in the market have been continually focusing on developing new devices to address consumer requirements. In February 2022, TSMC, the world's significant contract chip maker, announced the USD 7 billion factory in southern Japan in November. Construction is scheduled to start this year, with production beginning by the end of 2024. That announcement was welcomed by the Japanese governance, which wants TSMC to construct plants to supply essential chips to Japan's electronic device makers and auto organizations as the trade conflict between the United States threatens to disrupt supply chains and demand for the component grows.

Further, the demand for wearables (fitness tracks, smartwatches, etc.) that offer health monitoring functionalities such as heart rate also shows an upward trend. Considering the growing demand, vendors are increasingly launching new wearable products with health-tracking features. For instance, Amazon recently launched its latest fitness tracker, "Halo View." The fitness tracker counts steps like other fitness trackers, accounts for crucial health metrics like blood oxygen levels and heart rate, and sends texts and reminder notifications.

Companies in Japan are investing in the semiconductor industry to build advanced businesses and sustainable growth. For instance, in November 2022, Micron started mass production of advanced DRAM memory chips in Japan. Micron's most advanced chip can store a third more data than older chips and comes as Japan attempts to revive and modernize its once-mighty chip industry.

In addition, in March 2023, Samsung Electronics Co. established a new semiconductor research center in Japan, combining two existing research and development institutes to advance its chip technologies and hire more talented R&D staff. The latest research center will play the role of Samsung's R&D control tower in Japan, focusing on designing and developing system LSI chips such as image sensors, application processors (APs), and modems. Such expansion in the country may further drive the studied market growth.

Moreover, COVID-19 negatively impacted the country's semiconductor device demand in the consumer industry. Semiconductors were used in most consumer gadgets that work on electricity or batteries. The need for semiconductors hampered critical care owing to their extensive use in smartphones, CPUs, televisions, refrigerators, and mobile ultrasound devices, among other things. Furthermore, the market is predicted to grow in the forecasted period as consumer industries across the country increase in the market.

Japan Semiconductor Device Industry Segmentation

A semiconductor's significance lies between the conductor and the insulator. It controls and handles the flow of electric current in electronic equipment and devices. As a result, it is a popular component of electronic chips made for computing components and different electronic devices, including solid-state storage. 

The studied market is segmented by device types such as discrete semiconductors, optoelectronics, sensors, integrated circuits (analog, logic, memory, micro [microprocessors (MPU), microcontrollers (MCU), digital signal processors]). The impact of Covid-19 on the market and impacted applications are also covered under the scope of the study. Further, the disturbance of the elements affecting the Market's evolution in the near future has been covered in the study regarding drivers and restraints. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.