Japan Analog IC Market Size

Japan Analog IC Market Analysis

The Japanese analog IC market was valued at USD 7.23 billion in the previous year. It is expected to register a CAGR of 5.74%, reaching USD 10.22 billion by the end of the forecast period. Japan's consumer electronics industry, one of the largest in the world, is one of the most significant factors driving the demand for analog ICs in the country.

• As per the Japan Electronics and Information Technology Industries Association (JEITA), due to the strong export performance of electronic devices and components that go along with the rising percentage of electronic components in vehicles and the effect of rising 5G measurement demand on electric measuring instruments, domestic production by the Japanese electronics industry increased by 2% to JPY 11,124.3 billion in 2022.
• It is anticipated that the production of electronic components and semiconductors will increase in 2023 as a result of increased investments in digitalization, industrial automation, and environmental protection, causing domestic output to increase by 3% annually to JPY 11,402.9 billion. These factors may drive market growth during the projected period.
• Analog IC design focuses on creating circuits that operate in and are optimized for continuous time-domain behavior. With all the basic devices in an IC responding to continuous time stimulus, analog design forms the foundation for all IC design. Modern IC technology has many design challenges. There is significant variability in the manufacturing process for advanced technology nodes. The operation of a high number of devices on advanced ICs also results in variability, which manifests as changes in operating voltage, operating temperature, and performance. Analog design must compensate for these effects to ensure essential qualities like fidelity/precision, consistency, and performance.
• As the nation attempts to restore its semiconductor manufacturing sector, which was hampered by COVID-19-related supply chain disruptions, Japan is presently experiencing a scarcity of qualified workforce. The five years between now and 2030 are "the last and biggest chance for Japan's semiconductor industry to regain its footing" after years of losing global market share, according to an electronics industry body representing major manufacturers like Toshiba and Sony in an appeal to the Ministry of Economy, Trade, and Industry in May 2022. According to the Japan Electronics and Information Technology Industries Association (JEITA), in order to stay up with the rate of investment, eight major companies will need to employ roughly 35,000 engineers.