Survey Purpose and Background This is a comprehensive analysis report conducted by METI aimed at strengthening competitiveness and ensuring strategic autonomy in the semiconductor industry, which is a nationally critical technology. The study provides detailed examination of the current status and future strategies of Japan's semiconductor industry, considering international developments including US-China technological competition, Taiwan geopolitical risks, and supply chain reorganization. Analysis of technological trends and market competition structures was conducted through surveys of 300 major semiconductor companies and 50 research institutions globally.
Current Status Analysis of Japan's Semiconductor Industry Japan's semiconductor market share stands at 8.7% globally, significantly down from its peak of 50.3% in 1988. However, Japan maintains world-class competitiveness in materials and equipment sectors, holding 62.1% global share in silicon wafers and 35.4% in semiconductor manufacturing equipment. Domestic semiconductor companies' capital investment reached ¥1.8 trillion, up 28.7% year-on-year, with ¥520 billion specifically allocated to advanced process technology development.
Technological Competitiveness and Challenges In cutting-edge 5nm and below process technologies, Japanese companies significantly lag behind Taiwan's TSMC and Korea's Samsung, with Japan's advanced technology share at only 2.3%. However, in power semiconductors, Japanese companies maintain a 23.8% global share and hold technological advantages in next-generation SiC (silicon carbide) technology. Human resource shortages are severe, with an estimated shortage of approximately 28,000 semiconductor engineers, particularly urgent in circuit design and process technology specialists.
Strategic Recommendations and Policy Support To enhance semiconductor industry competitiveness, the report proposes implementing a "Semiconductor Strategic Investment Program" totaling ¥10 trillion over 10 years. The allocation plan includes ¥4 trillion for advanced manufacturing base development, ¥3 trillion for R&D support, ¥1.5 trillion for human resource development, and ¥1.5 trillion for equipment and materials industry strengthening. The goal is to expand domestic advanced semiconductor production capacity from the current 50,000 wafers per month to 200,000 wafers by 2030, aiming to increase global market share from the current level to a more competitive position in strategic semiconductor segments.