Japan Logic Integrated Circuit (IC) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.07 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Logic Integrated Circuit (IC) Market Analysis
The Japan Logic Integrated Circuit (IC) Market was valued at USD 13.14 billion the previous year. It is expected to grow at a CAGR of 6.07%, reaching USD 24.16 billion over the forecast period. Logic semiconductors are used to process digital data to control the operation of electronic systems. Digital circuits are usually built from small microelectronic circuits called logic gates. Logic gates form the building blocks of digital systems.
With miniaturization trends, devices are becoming smaller, more power-efficient, and more portable. However, battery life, efficiency, and cost present significant issues in portable devices. In such devices, including tablets and laptops, logic is often used for battery charging and discharging blocks and to provide standby mode, power-down, and start-up control sequences.
Moreover, the proliferation of smartphones and tablets in the country, coupled with the growing demand for electric vehicles, are among the key drivers for the market. For instance, the monthly domestic shipment volume of smartphones in Japan reached around 930 thousand units in December 2022 (as per JEITA). In mobile devices, logic provides multiplexing, buffering, and level-translation functions for the baseband, RF interfaces, memory, and other peripherals.
Also, Japan's government is offering financial aid to encourage foreign chip makers to build plants in Japan, providing a strong impetus for market growth. For instance, in June 2022, Japan's Ministry of Economy, Trade and Industry (METI) announced plans to offer subsidies worth up to JPY 476 billion (USD 3.5 billion) for a semiconductor plant being built in Kumamoto Prefecture by Taiwan Semiconductor Manufacturing Co. (TSMC), Sony Group and Denso. Total investment in the plant was expected to reach around USD 8.6 billion, with Japan's government supporting about 40% of the costs.
However, modern IC technology has many design challenges. There is significant variability in the manufacturing process for advanced technology nodes. The actual operation of many devices on advanced ICs also results in variability, which manifests as changes in operating voltage, operating temperature, and performance.
COVID-19 impacted the entire semiconductor industry in several ways. Firstly, it disrupted the supply chain by complicating the shipping and transportation industry and reducing access to labor. Secondly, the pandemic further accelerated the demand for integrated circuits by starting a new wave of digital transformation and remote work.
Japan Logic Integrated Circuit (IC) Market Trends
Standard Logic Segment to Occupy a Significant Share
According to their structure, standard logic ICs can usually be classified into TTL (transistor-transistor logic), CMOS logic ( Complementary MOSFET), and BiCMOS logic (bipolar CMOS). Currently, CMOS logic ICs that combine low power consumption and low cost are most commonly used.
CMOS technology finds widespread application in microprocessors, microcontrollers, static RAM, and other digital logic circuits. It is also used for various analog circuits, including image sensors, data converters, and highly integrated transceivers for many types of communication.
For instance, in July 2022, Sony Semiconductor Solutions Corporation announced the release of the IMX675, a 1/3-type CMOS image sensor for security cameras with around 5.12 megapixels that simultaneously provides both full-pixel output of the whole captured image and high-speed output of regions of interest.
Traditionally, CMOS logic circuits were important in implementing main system functions. However, peripheral components are being integrated into LSI chips to improve functionality and reduce the size of electric and electronic applications. CMOS logic ICs are still used in several applications as they are indispensable for glue logic that interfaces different LSI chips and boards.
Though Japan is still at an early stage in its 5G deployment, since the start of 2021, its mobile operators have been accelerating their 5G rollout. For instance, SoftBank aimed to deploy over 50,000 5G base stations and targeted 90% population coverage by the end of March 2022. Similarly, NTT Docomo aims to cover 90% of the Japanese population by March 2024, up from its previous goal of 80%. CMOS RF technologies have now entered the mainstream due to opportunities presented by 5G technologies.
Automotive Application to Grow at a Fast Rate
The automotive industry uses digital circuits for various functions, such as monitoring fuel level, tire pressure, and engine status and providing the indication as an alarm. Logic gates form the fundamental building blocks of digital circuits. Having emerged as the 5th largest automobile market in 2022, as per the German Association of the Automotive Industry or VDA, Japan offers considerable growth opportunities.
The automotive industry is consistently looking forward to wide-scale electrification and advancements. Introducing smart connected technology and autonomous features drives the demand to implement semiconductor chips. Thus, the increased use of circuitry, MCUs, and sensors directs the increased deployment of logic ICs for power regulation and rectification.
Further, according to Japan Automobile Importers Association, the number of imported electric vehicles sold in the country during 2022 rose 65% from a year earlier to reach a record 16,464 units. As such, the automotive industry's migration from fossil fuel to hybrid and electric vehicles positively contributes to market growth.
Moreover, the growing need for better safety and advanced driver assistance systems (ADAS) in cars has accelerated the demand for semiconductors. Intelligent functions, like backup cameras, adaptive cruise control, blind-spot detection, lane change assist, airbag deployment, and emergency braking systems, are made possible by integrating semiconductor technologies.
Currently, the Road Traffic Act in Japan permits Level 3 driving, in which a self-driving system can operate a vehicle most of the time, but the human driver must be ready to take necessary actions in an emergency. However, in April 2022, a new amendment to Japan's Road Traffic Act was published, which introduced a permission system for Level 4 Autonomous Vehicles. Such regulations further help to aid the market growth in the country.
Japan Logic Integrated Circuit (IC) Industry Overview
The competitive rivalry in the Japan Logic Integrated Circuit (IC) Market is moderately high, as the market comprises many large vendors that command a prominent market share besides having access to well-established distribution networks. Major vendors in the market studied are involved in M&A activities and partnerships to gain higher penetration and market share. Some prominent vendors in the market include Renesas Electronics Corporation, ROHM Semiconductor, Kioxia Holdings Corporation, etc.
In November 2022, major Japanese firms, including Nippon Telegraph and Telephone and Kioxia Holdings, decided to invest in a new state-backed company that plans to mass-produce next-generation logic semiconductors.
In November 2022, Infineon launched the RASIC CTRX8181 transceiver, the company's first product in a series of new 76 to 81 GHz radar MMICs based on 28-nm CMOS technology. The transceiver's improved signal-to-noise ratio and linearity deliver high system-level performance and resilience.
Japan Logic Integrated Circuit (IC) Market Leaders
Renesas Electronics Corporation
Sony Semiconductor Solutions Group
ROHM Semiconductor
Mitsubishi Electric Corporation
Toshiba Corporation
*Disclaimer: Major Players sorted in no particular order
Japan Logic Integrated Circuit (IC) Market News
- April 2023: Japan's industry ministry revealed its decision to provide state-backed chip maker Rapidus an additional JPY 300 billion (USD 2.27 billion) in funding to establish a semiconductor plant on the northern island of Hokkaido.
- December 2022: IBM and Rapidus announced a joint development partnership to advance logic scaling technology as part of Japan's initiatives to acquire a strong position in semiconductor research, development, and manufacturing.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness- Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Focus on Integration of Devices
5.1.2 Rising Capital Spending by Fabs to Increase Production Capacities
5.2 Market Challenges
5.2.1 Complex Fabrication Process owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Logic Standard
6.1.2 MOS Special Purpose Logic
6.2 By Product Type
6.2.1 ASIC
6.2.2 ASSP
6.2.3 PLD
6.3 By Application
6.3.1 Consumer Electronics
6.3.2 Automotive
6.3.3 IT & Telecommunications
6.3.4 Manufacturing and Automation
6.3.5 Other End-user Industries (Healthcare, Aerospace & Defense, etc.)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Renesas Electronics Corporation
7.1.2 Sony Semiconductor Solutions Group
7.1.3 ROHM Semiconductor
7.1.4 Mitsubishi Electric Corporation
7.1.5 Toshiba Corporation
7.1.6 NXP Semiconductors N.V.
7.1.7 Analog Devices INC.
7.1.8 Infineon Technologies AG
7.1.9 STMicroelectronics
7.1.10 Kioxia Holdings Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Japan Logic Integrated Circuit (IC) Industry Segmentation
A logic IC is a semiconductor device that implements a basic logical operation performed on one or more digital input signals.
The Japan Logic Integrated Circuit (IC) Market is segmented by Type (Logic Standard, MOS Special Purpose Logic), Product Type (ASIC, ASSP, PLD), and Application (Consumer Electronics, Automotive, IT & Telecommunications, Manufacturing & Automation). The report offers the market size in value terms in USD for all the abovementioned segments.
| By Type | |
| Logic Standard | |
| MOS Special Purpose Logic |
| By Product Type | |
| ASIC | |
| ASSP | |
| PLD |
| By Application | |
| Consumer Electronics | |
| Automotive | |
| IT & Telecommunications | |
| Manufacturing and Automation | |
| Other End-user Industries (Healthcare, Aerospace & Defense, etc.) |
Frequently Asked Questions
What is the current Japan Logic Integrated Circuit (IC) Market size?
The Japan Logic Integrated Circuit (IC) Market is projected to register a CAGR of 6.07% during the forecast period (2024-2029)
Who are the key players in Japan Logic Integrated Circuit (IC) Market ?
Renesas Electronics Corporation, Sony Semiconductor Solutions Group, ROHM Semiconductor, Mitsubishi Electric Corporation and Toshiba Corporation are the major companies operating in the Japan Logic Integrated Circuit (IC) Market .
What years does this Japan Logic Integrated Circuit (IC) Market cover?
The report covers the Japan Logic Integrated Circuit (IC) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Logic Integrated Circuit (IC) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Logic Integrated Circuit (IC) Market Industry Report
Statistics for the 2024 Japan Logic Integrated Circuit (IC) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Logic Integrated Circuit (IC) analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
