Japan Semiconductor Fabrication Material Market to Grow Due to Demand from End-use Industry

Japan semiconductor fabrication material market is expected to rise due to an increase in the usage of semiconductors in different end-use industries, including consumer appliances and telecommunications, and easy availability of cost-effective raw materials.

According to the Markets and Data Research Report, “Japan Semiconductor Fabrication Material Market Assessment, By Region, Opportunities and Forecast, FY2017-FY2031F”, the Japan semiconductor fabrication material market is projected at 6.80 billion in FY2023 and is projected to reach USD 10.92 billion by FY2031, rising at a CAGR of 6.22% in the forecast period. The Japan semiconductor fabrication market is projected to grow due to continuous technological innovations, increased demand for consumer electronic products, and product innovations. The introduction of modern communication technology began with the integration of semiconductor devices in telecommunication. Moreover, the demand for semiconductor fabrication is significantly driven by different sectors including technology, automotive, and electronics. Governmental initiatives of forming joint ventures and signing an agreement with other developed as well as developing countries driving the growth of Japan semiconductor fabrication market. For instance, in May 2022, Japan and the United States agreed on the ‘Basic Principles on Semiconductor Cooperation’ throughout the JUCIP meeting. The agreement led to the introduction of a joint task force for next-generation semiconductors at the United States-Japan summit, where both countries decided to announce joint research and development. In addition, Japan announced the introduction of Leading-Edge Semiconductor Technology Center (LSTC), a Research and Development hub funded by IBM, modeled after the United States National Science and Technology Council. During 2023, Japan and India announced a collaboration to improve the supply chain for semiconductors, focusing to accelerating production of chip and rising demand for semiconductor fabrication materials, thereby contributing the market growth in Japan.

The demand for semiconductor fabrication materials is projected to rise as Japan boosts semiconductor chip production and undertakes research and development initiatives. The government is establishing LESTC. Japan is partnering with Taiwan’s TSMC, Denso, and Sony to ramp up semiconductor chip manufacturing. The collaboration has led to the introduction of Japan Advanced Semiconductor Manufacturing and Construction of a wafer fabrication plant in Kumamoto Prefecture. To further motivate domestic production, the Japanese government plans to subsidize up to one-third of capital costs for precise semiconductor devices, materials, and equipment over the next decade.

Transistors played an important role in improving prevailing technologies, transitioning from narrow bands to private packet-switched networks. One efficient advancement enabled by semiconductor technology is the 5G network, which can transmit significantly larger amounts of data at speeds, surpassing those of 4G LTE. As the usage of semiconductor devices in telecommunications continues to rise, the need for semiconductor fabrication is rising. In addition, the semiconductor fabrication market in Japan is expected to witness substantial growth soon, propelled by the growing interest in digital integrated circuits. Furthermore, the growing usage of CPM slurry in consumer electronics devices has supported the market expansion. The increased demand for 300 mm wafers in semiconduction production has propelled the market growth.

In addition, the growth of Japan semiconductor fabrication material market is expected to be driven by growing investments in the semiconductor industry and the establishment of new manufacturing plants. For instance, the Japanese government has invested USD 6.8 billion in domestic semiconductor production to position the country as a leading global supplier of essential computer chips. The investment focuses on addressing the semiconductor shortage by expanding and improving Japan’s capacity in chip manufacturing. It is projected to foster the fabrication materials demand in Japan as those materials will facilitate the development of semiconductor chips.

Spread through 145 pages, the "Japan Semiconductor Fabrication Material Market" report includes an in-depth TOC, over 35 market data figures, latest market developments, key drivers and opportunities, and a thorough study of major company profiles. Moreover, the report offers strategic recommendations, pricing analysis, market share analysis, and value chain analysis in detail.

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Key Takeaways:

• The significant usage of semiconductor devices in the telecommunication industry is propelling the requirement for semiconductor fabrication in the forecast period.
• The rising investment by the government aids in driving the demand and market share.
• The companies in Japan semiconductor fabrication market are actively adopting strategies to expand product portfolio and footprint, accelerating the market growth.
• The rapid trend of adopting electronic gadgets and electronic systems is fostering the market growth.

Japan semiconductor fabrication material market is segmented in the following categories:

By Material Type: Silicon Wafers, Wet Chemicals, CMP Slurry and Pads, Photomasks, Photoresist and Photoresist Ancillaries, Industrial Gases, and Others.

By Semiconductor Type:  N-type and P-type

By End-User: Electrical and Electronics, Energy and Power, Medical Devices, Transportation, Telecommunication, Others

By Region: North, Central, and South

Based on material type, silicon wafers dominate the market due to their extensive range of applications in the technology industry because of their effective combination of thermal and electrical properties. These applications comprise the fabrication of semiconductor devices, solar cells, and many other electronic components. The versatility of silicon wafers has provided them with an essential material in the innovations of modern technology. In addition, silicon wafers are an effective component in the production of solar cells, essential components of solar panels used to capture and convert solar energy.

Based on semiconductor type, n-type dominates the largest market revenue share in Japan semiconductor fabrication material market as they have a lot of free electrons and can carry away more heat than other semiconductor types. N-type semiconductors are important in forming p-n junctions, which are introduced by bringing together p-type and n-type semiconductor. The interaction forms a depletion area where electrons and holes recombine, introducing light and thereby creating light-emitting diodes. The significant expansion of the LED industry as well as the electronics industry and new developments including expansions, new product launches, and acquisitions, are the key drivers supporting the growth of this segment in Japan.

Major Companies Operating in Japan Semiconductor Fabrication Material Market Include:

·         Shin-Etsu Chemical Co., Ltd.

·         Fujifilm Business Innovation Corporation

·         Sumitomo Chemical Co., Ltd.

·         Sumco Corporation

·         Nippon Sanso Holdings Corporation

·         Tokyo Ohka Kogyo America, Inc.

·         Tokuyama Soda Co., Ltd.

·         JSR Corporation

·         Toppan Photomasks Inc.

·         Hoya Corporation

Companies in Japan semiconductor fabrication material market are actively involved in research and development (R&D) initiatives and making investments to promote innovation, improve current technologies, expand semiconductor materials manufacturing capabilities, and create new solutions. Also, market participants are adopting strategies including mergers and acquisitions, new product launches, collaboration, partnerships, and others to expand the product portfolio, gain a competitive advantage, and improve brand image. In addition, foreign companies are investing their money in Japan semiconductor fabrication material market to expand their footprint and enlarge their customer base which is further helpful in earning the highest revenue.

For instance, in May 2022, Micron Technology announced plans to invest nearly USD 3.5 billion in extreme ultraviolet technology over the next few years, with support from the Japanese government. The initiative positioned Micron as the first company to implement EUV technology for production in Japan. Such foreign investments are projected to improve semiconductor manufacturing and increase the need for semiconductor fabrication materials across the country.  

“Japan Semiconductor Fabrication Material Market Assessment, FY2017-FY2031F”, evaluates the future growth potential of Japan semiconductor fabrication material market and provides statistics and information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers to make investment decisions for their organizations more strategically. Moreover, the report identifies and examines the emerging trends along with key drivers, challenges, and opportunities in Japan semiconductor fabrication material market.

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