Daniel Slotta
Research expert covering Greater China
Semiconductors in Japan - statistics and facts
Semiconductors play an increasingly important role for economies around the world. While Japan has long operated as a manufacturer and major exporter of semiconductor equipment, the global chip shortage during the COVID-19 pandemic showed that the country was vulnerable to supply chain disruptions. Since semiconductors are used for a wide variety of important technologies, such as data centers and artificial intelligence (AI), the semiconductor industry is considered essential for economic success and even has become an issue of national security in Japan. Although the country accounted for more than half of the global chip production in the late 1980s, it was not able to maintain its preeminent position due to a variety of factors, such as the relocation of facilities to overseas production sites, the rise of other competitors, including Taiwan and South Korea, a focus on vertically integrated production models, and a lack of public funding. Despite these circumstances, Japan continues to be a major player on the global stage and has formulated ambitious plans to improve its position in the coming years.
