Setting the Stage

Japan is the third-largest economy in the world and, at one point, held the title for world’s largest semiconductor maker; Japan controlled over half of the global market share of semiconductors. As globalization spread, countries began to move their semiconductor production elsewhere, and the semiconductor market in Japan slowly dissipated.

Reclaiming the Spotlight

Over the past few decades, Japan has begun heavily investing in their domestic semiconductor operations. In 2020, the Japanese government set a goal for themselves to increase semiconductor sales to 5 trillion yen by 2030. In the beginning of June, the country announced they have re-strategized and revised their previous benchmark, now looking to triple that figure and reach 15 trillion yen ($112.55 billion) in semiconductor sales.

Earlier this year, Japan stated that it would be carrying out protectionist measures towards China by implementing restrictions on 23 types of semiconductor manufacturing equipment. Japan is following suit behind the United States and the Netherlands in implementing trade restrictions aimed towards the Chinese semiconductor industry. Tensions between the United States and China remain high, as the two largest economies in the world clash over control in the semiconductor industry.

In other efforts to recapture competitiveness, Japan has offered large subsidies for joint ventures with companies from Taiwan and the United States. Additionally, several key players in the semiconductor industry have begun heavily expanding operations in Japan, including opening a Japan’s first ever chip packaging line.

The Japanese semiconductor industry is undoubtedly seeing a resurgence. The country is showing high potential and promise as they continue to invest in their electronic chip operations, attracting several large companies. Converge is one of the few supply chain optimization providers that have a truly global footprint. With commodity managers and expert teams located around the world, including Japan, you can trust us to execute on every phase of your electronic component procurement and distribution.


Contact our Japanese team to learn more about how Converge is supporting this growing market.

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