Japan Semiconductor Diode Market Size

Japan Semiconductor Diode Market Analysis

The Japanese semiconductor diode market was valued at USD 345.7 million during the current year and is anticipated to reach USD 565.0 million by the end of the forecast period, registering a CAGR of 2.4% during the forecast period. The COVID-19 impact was mainly observed at the first or starting node of the market value chain, which included lighting product manufacturers. Like the manufacturing sector, lighting manufacturers relied on China and Japan to source a significant percentage of their components. These countries witnessed the earliest lockdown measures, while several other countries took similar measures to halt the spread of the disease. However, with the necessary components, production continued in many places. Longer lead times, depleted inventories, and premium pricing were some ways suppliers, manufacturers, and their customers experienced the COVID-19 impact. Sudden revenue loss almost sunk many smaller companies in this sector. This left holes in the supply chain that were not filled for some time.

• The evolution in the performance of laser diode and the changes in its price are expected to drive the market. Technological advancements have enabled lasers to evolve from being technical instruments to being used in a diverse range of applications in the market. The laser diode is the most widely available laser technology, with simple semiconductor devices. As the average power of laser diodes has increased significantly, their average price per watt has decreased exponentially, making them a cost-effective option for various applications. Material processing and optical sensing are examples of the rapidly evolving segments in the market for laser diodes, with many emerging applications.
• However, technological advancements and intensified pricing competition have led to a decline in the market share of existing products and delays in developing new products for next-generation communications, making it difficult to secure the expected revenue. For instance, Renesas Electronics Corporation withdrew from the LD (laser diode) and PD (photodiode/detector) businesses and closed the production line at the Shiga Factory, which manufactured compound semiconductor products.
• Today, Japan is developing new and innovative LED lamps in the market to support the adoption of sustainable and environment-friendly LED lamps. For instance, the Natural Science Center for Basic Research and Development research team from Hiroshima University published their findings on January 28, 2022, in the American Chemical Society Journal ACS Sustainable Chemistry & Engineering.
• Moreover, with the growing commercial and residential infrastructure, retails, hospitals, and public places, various local authorities have undertaken multiple initiatives to beautify the city using LED lamps to promote the adoption of LED lamps in the country.
• For instance, in August 2022, in Japan, a colorful illumination themed on the Milky Way galaxy, dotted with traditional Japanese umbrellas, was organized at the "Nabanano Sato" tourist facility in Kuwana, Mie Prefecture. The "Summer Illumination" spectacle mesmerized visitors as LED light bulbs portrayed stars making up the approximately 130-meter-long, 8-meter-wide "Milky Way" across a large pond at the facility after dusk.
• Further, in June 2022, OSRAM announced that Taiwan-based Ledtech chose the high-performance OSLON UV 3636 UV-C LEDs to provide a sanitization function in its new BioLED intelligent air purifier. The OSLON UV-C LEDs from OSRAM offer a compact, dependable, and more environmentally friendly option to the conventional lamps that produce UV-C at a reasonable price.