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Japan Reviving its Semiconductor Might

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Japan Reviving its Semiconductor Might

Rachita Sharma, Managing Editor , 0

The modern world relies heavily on semiconductors, chips required by electronic products such as smart phones, laptops, cars, data centers, industrial machines, IoT devices, and AI systems. The global semiconductor industry is undergoing a significant evolution driven by the rising demand for chips in AI, data centers, cloud computing, and high-performance computing systems.

The APAC region has always been a semiconductor super power. Although North America excels in chip design, fabless innovation, and software/R&D, APAC has built dominance in manufacturing and consumption volume.

The semiconductor devices market size in the Asia -Pacific region was estimated at 432.11 billion in 2025 by Mordor Intelligence. Going forward, it is expected to grow at a CAGR of 8.21 percent over the next five years and reach a market size of $641.10 billion by 2030.

Key factors powering this growth are is the growing demand for advanced logic, memory and power devices, along with the expansion of regional capacity. Government incentives for sub-7 nm manufacturing, introduction of 5G and upcoming 6G networks, and the rapid increase in electrification in transportation and renewable energy systems are further driving the industry’s rapid growth in the APAC region.

Despite ongoing macroeconomic uncertainties, leading foundries' strict node migration timelines and conti -nuous capital investments by memory manufacturers help maintain high utilization rates. In the past, the semiconductor market in the Asia Pacific region has exceeded that of the Americas and has been growing rapidly as a result of high demand for consumer electronics, 5G infrastructure automotive electronics, and data centers.

It has been rather interesting to see Japan’s trajec -tory in the semiconductor landscape. The country once ruled the global semiconductor sector, with its revenue share reaching 50% in the 1980s. However, it gradually lost steam over the years and today contri -butes about 10 percent of the global semiconductor chips. With other nations taking over, notably, China and South Korea. However, Japan’s semiconductor might is on the rebuild lately. The country is investing heavily in strengthening its abilities in the semiconductor sector.

Going forward it will be interesting to watch Japan revive its semiconductor prowess.

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