Japan Semiconductor Manufacturing Equipment Market Forecast to reach USD 19.40 billion by 2030

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The Japan Semiconductor Manufacturing Equipment Market size was valued at around USD 11.81 billion in 2024 and is projected to reach USD 19.40 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 8.63% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The rise in the market is due to an increase in the demand for electronic devices & 5G internet services, government support, growing investments in technology cloud, AI, ML, etc., enlarging manufacturing, automotive, and other sectors, the growing need for hybrid and electric vehicles, and others.

The digital infrastructure of Japan includes data centers and parks that are growing due to the increasing demand for high-speed internet services, adoption of AI, ML, cloud, IIoT, etc., across several sectors, primarily manufacturing. Japan is one of the leading nations in terms of manufacturing due to the production of high-quality products by advanced IIoT machinery. The digital infrastructure is equipped with semiconductor chips and circuits, such as CPUs, GPUs, etc., to offer seamless services to the manufacturing units for functioning. Thus, for the smooth and effective functioning of manufacturing and digital infrastructure, semiconductor chips are needed, hence increasing the demand for semiconductor manufacturing equipment in Japan.

Additionally, the Japanese government is encouraging the semiconductor industry through incentives, collaborations, public-private partnerships, increasing funds for research & development of new materials and technologies, etc. To support the domestic and small-scale start-ups, the government announced to invest about USD70 billion by 2027, under the five-year development plan initiated in 2022, further states the research report, “Japan Semiconductor Manufacturing Equipment Market Analysis, 2025.

Japan Semiconductor Manufacturing Equipment Market Segmentation Analysis

Silicon Carbide Segment Holds the Largest Market Share

Based on the material used, the market is further bifurcated into silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others. The silicon carbide holds the majority of the market share, nearly 54%. This is due to the rich reserve of silicon carbide, technological advancements, wide utility in the automotive industry, their high thermal conductivity, etc.

Silicon Carbide is used across several end-user industries, especially in automotive, because of its high electrical and thermal conductivity. The lower retention of heat in the machinery with silicon carbide semiconductor eliminates the need for the cooling equipment, thus making the machinery compact and lightweight. The reduced heat in the machinery has increased its utility in the automotive industry and its batteries because of the reduced load on the engine and battery, as the engines and batteries require cooling units for operation. Tesla has initiated the use of this material semiconductor for vehicle efficiency, and the high power voltage offered by the silicon carbide. Due to all these benefits, silicon carbide is in demand, thus facilitating segmental revenue growth in the country.  

Memory Devices Generate Major Market Demand

Memory Devices dominate the Japan Semiconductor Manufacturing Equipment Market by approximately 63%. This is due to the adoption of 5G internet services, growing and well-established digital infrastructure, rising penetration of smartphones, integration of advancements such as AI, ML, Cloud, etc., the growing government investments, digitalization of sectors, etc.

The demand for electronic gadgets, especially smartphones, in Japan has increased lately, due to the increasing white collar population, the growing gaming & entertainment industry, the rise in e-commerce, the increase in disposable income, and others. The high-speed internet has led to global connectivity, with more than 153% of the population using mobile services, in 2024, as per GSMA. The surge in the use of smartphones and their services generates tons of data, for which advanced memory devices and chips are manufactured. To manufacture such upgraded memory devices and chips like DRAM, NAND, etc., semiconductors are used because of their durability and speed, which enhances their efficiency. Thus, the increasing generation of data and the growing need for memory devices have increased the demand for semiconductor chips and circuits, hence increasing the need for semiconductor manufacturing equipment in Japan.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Intel Corporation, Nvidia Corporation, Kyocera Corporation, Qualcomm Incorporated, STMicroelectronics NV, Micron Technology Inc., Xilinx Inc., NXP Semiconductors NV, Toshiba Corporation, Texas Instruments Inc., Taiwan Semiconductor Manufacturing Company (TSMC) Limited, Samsung Electronics Co. Ltd., Fujitsu Semiconductor Ltd., and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?