Japan Semiconductor Device Market to Grow by USD 8.48 Billion (2024-2028),Vendor Strategies Boost Growth, AI-Powered Market Evolution Report - Technavio

The Japan semiconductor device market is projected to grow by USD 8.48 billion between 2023 and 2028, at a CAGR of 8.22%. The market's expansion is driven by rising automotive semiconductor demand, as high-power power electronics semiconductors are increasingly used in AI chip advancements and IoT semiconductor solutions for smart and autonomous vehicles. Additionally, substantial investments in 5G semiconductor components are fueling growth, particularly in telecommunications and industrial automation.Advancements in semiconductor manufacturing equipment and advanced packaging technologies are further enhancing the performance and efficiency of next-generation chips, while memory chip innovations are addressing the increasing demand for data storage and processing capabilities. However, semiconductor supply chain strategies remain a critical factor in overcoming disruptions and ensuring steady production. Moreover, research into emerging semiconductor materials is expected to play a pivotal role in future technological developments. Despite these advancements, high semiconductor costs continue to pose a significant challenge to market expansion.Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Market Segmentation

By Application

• Consumer Electronics
• Communications
• Automotive
• Medical Devices
• Others

By Device

• PMIC
• Microchips
• RFID

By Material

• Silicon
• Germanium
• Gallium Arsenide
• Others

By Geography

• Japan

By Application Insights

The consumer electronics segment is poised for significant growth due to the adoption of ultrasonic, radar, and lidar sensors in devices like autonomous vehicles, industrial robots, and electric vehicles (xEV). These sensors enable crucial functionalities:

• Ultrasonic sensors – Parking assistance, obstacle detection
• Radar sensors – Adaptive cruise control, collision avoidance
• Lidar sensors – 3D mapping, object detection

Key players capitalizing on this trend:

• Onsemi – Radar and lidar solutions for autonomous vehicles
• Analog Devices – Power management solutions for industrial robots
• Power Semiconductors – GaAs components for power amplifiers and switches in smartphones

In 2018, the consumer electronics segment was valued at USD 6.54 billion, showing a steady increase over the forecast period.

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Market Dynamics

Drivers

• Rising Demand for High-Power Density Devices
  • Growth in wide-bandgap (WBG) semiconductors like GaN and LED power semiconductors
  • GaN semiconductors operate at up to 500°C, outperforming conventional silicon semiconductors (150°C limit)
  • Used in sectors including transportation, energy, healthcare, and data centers
  • Key applications:
    • Automotive – Electric & hybrid vehicles (xEV), motor control
    • Energy – Photovoltaic inverters, UPS systems
    • Data Centers – Power management, cooling systems
    • Healthcare – Imaging systems, patient monitoring devices

Trends

• Investments in 5G Technology
  • Increased demand for semiconductor components in 5G mobile networks
  • Applications in automotive:
    • LED headlights, backup cameras, adaptive cruise control, blind-spot detection, lane change assist, airbags, emergency braking systems
  • Image sensors – Key component in ADAS for vehicle safety
  • Industry 4.0 & Cyber-Physical Systems (CPS) – Real-time data processing and efficiency improvements

Challenges

• High Cost of Semiconductor Devices
  • SiC and GaN semiconductors are costly due to expensive substrates:
    • 125mm Si wafer – USD 19.02
    • 100mm SiC wafer – USD 2,000+
    • 100mm GaN wafer – USD 1,800
  • SiC power semiconductors – Substrate costs make up 30%+ of the total cost
  • Si semiconductors – Substrate costs account for 7%

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Key Players

• Advanced Micro Devices Inc.
• AOI ELECTRONICS CO. LTD.
• Infineon Technologies AG
• Intel Corp.
• Kyocera Corp.
• Micron Technology Inc.
• Mitsubishi Electric Corp.
• NVIDIA Corp.
• NXP Semiconductors NV
• Qualcomm Inc.
• Rapidus Corp.
• Renesas Electronics Corp.
• ROHM Co. Ltd.
• Samsung Electronics Co. Ltd.
• Screen Holdings Co. Ltd.
• Sharp Corp.
• Shindengen Electric Manufacturing Co. Ltd.
• STMicroelectronics International NV
• Sumitomo Corp.
• Toshiba Corp.

Future Market Insights

The Japanese semiconductor market will continue its expansion due to:

• Growing demand for high-power density devices
• Increasing 5G investments
• Expanding applications in automotive, healthcare, industrial automation, and data centers
  However, high costs of semiconductor materials may impact widespread adoption.