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The size of the semiconductor market in Japan amounted to  billion U.S. dollars in 2025. It is forecast to increase to almost billion dollars by 2027.

A key player in the semiconductor industry

A breakdown of worldwide revenue shares by region shows that Japan accounts for approximately **** of global semiconductor sales. The country hosts numerous leading technology firms that are part of the semiconductor industry, such as Tokyo Electron Ltd., Renesas Electronics Corporation, and Rohm Co., Ltd. In recent years, companies that engage in the production of semiconductor manufacturing equipment, such as Advantest Corporation, Disco Corporation, and Lasertec Corporation, have shown a significant positive development in terms of net sales.

Japan's efforts to reignite domestic semiconductor production

Geopolitical tensions and supply chain insecurities during the COVID-19 pandemic provided an important impetus for Japan to increase its efforts to revitalize domestic semiconductor production. To bolster Japan's independence from outside influences, the Japanese government provides support to semiconductor manufacturers through various means, such as tax exemptions, subsidies, and land allocations. In fiscal years 2021 to 2023, Japan invested nearly four trillion Japanese yen in the semiconductor industry, including substantial sums allocated to companies like Taiwan Semiconductor Manufacturing Company (TSMC) Limited and Rapidus Corporation. The Ministry of Economy, Trade and Industry (METI) stated in 2024 that it planned to triple the sales of the domestic semiconductor industry from about five trillion Japanese yen in 2020 to 15 trillion yen by 2030.