Japan’s share in the global semiconductor design market is only 9%, far lower than the United States’ 51%.
The Ministry of Economy, Trade and Industry (METI) is actively supporting the domestic semiconductor design industry. According to its 2024 survey data, Japan’s share in the global semiconductor design market is only 9%, much lower than the United States’ 51%. Meanwhile, in terms of Electronic Design Automation (EDA) tools used for design, Japan’s market share is nearly zero, lower than China’s 3%.
To design cutting-edge semiconductors for AI, data centers, communication base stations, autonomous vehicles, caregiving robots, and more, Japan will support research and development. At the same time, it requires the design of low-power consumption products.
Japan will provide research and development support for projects from its IT companies, startups, and universities for up to five years. The Ministry of Economy, Trade and Industry has decided to allocate 160 billion yen through the 2024 supplementary budget and the initial 2025 budget to fund the introduction of EDA tools, research personnel’s wages, prototype production costs of designed semiconductors, and other related expenses, which may total hundreds of millions to billions of yen.
Previously, the Ministry of Economy, Trade and Industry planned to provide support starting from 2023, with up to five years of funding totaling approximately 50 billion yen, in order to expand the scale of support for semiconductor design. Additionally, Japan plans to strengthen talent training by offering semiconductor design-related courses to domestic students and corporate researchers. To date, nearly 3 trillion yen has been allocated to support the construction of manufacturing bases, including TSMC’s Kumamoto factory, Kioxia’s memory factory, and Rapidus.
Aki Nakagawa of the UK research firm Omdia pointed out that if Japan can develop semiconductor design domestically, it will help drive the development of manufacturing bases, with obvious synergies. He believes there are good opportunities for designs focused on specific areas like autonomous driving.
Amid the fierce global competition in the semiconductor industry, Japan’s strategic layout is quietly reshaping the industry’s future direction. Japan is not only deeply engaged in semiconductor design, accumulating strong technical expertise and industry experience, but is also steadily expanding its comprehensive strategy in semiconductor materials, equipment, and manufacturing.
In semiconductor materials, Japan, with its advanced research and development technologies and strict quality control, has long held a significant share of the global high-end semiconductor materials market. Japan continuously introduces innovative and high-performance material products, providing a solid foundation for upgrading the semiconductor industry.
In the semiconductor equipment field, Japanese companies also demonstrate powerful technological strength and innovation capability. The advanced equipment they produce is widely used by semiconductor manufacturers around the world, becoming an important force in driving advancements in semiconductor manufacturing processes.
In semiconductor manufacturing, Japan is actively introducing advanced production processes and management models, continuously improving production efficiency and product quality, and striving to create a globally competitive semiconductor manufacturing industry cluster. Rapidus, mentioned in the article, was originally a semiconductor manufacturing company established in 2022 by eight major Japanese companies including SoftBank, Sony, and Toyota. Previously, the Japanese government also considered transferring factories and equipment funded by the government to the company in exchange for equity in Rapidus.
Currently, Rapidus plans to produce 2-nanometer chips at its Hokkaido factory by 2027 and has already received ASML’s extreme ultraviolet lithography (EUV) equipment by the end of last year. Existing shareholders such as SoftBank and Sony have expressed their intention to invest additional funds into Rapidus, with Fujitsu possibly also purchasing shares.
As preparations continue, if Rapidus can successfully launch 2-nanometer chip production in 2027 as planned, it will significantly enhance Japan’s competitiveness in the global high-end chip sector. This will not only meet domestic demand for high-performance chips but also open up international markets with its technological advantages, helping Japan regain a foothold at the top of the global semiconductor value chain. This is expected to attract more upstream and downstream companies to cooperate, further strengthening Japan’s semiconductor industry cluster effect.
According to the Ministry of Commerce’s website, on January 31, the Japanese government announced plans to impose export controls on more than a dozen semiconductor-related items and add several Chinese companies to the “end-user list.”
A spokesperson for the Ministry of Commerce responded to this by stating that China has noted the relevant situation. For some time, certain countries have generalized the concept of national security, abused export control measures, and imposed sanctions on China’s semiconductor and other industries. The export control measures that Japan intends to implement will affect the stability and security of the industrial and supply chains, disrupt normal commercial exchanges between enterprises, and harm the interests of companies in both countries.
The spokesperson stated that Japan’s related measures are currently open for public consultation. China hopes Japan will listen to rational voices from the industry and, from the perspective of maintaining international trade rules and the overall framework of Sino-Japanese economic and trade cooperation, promptly correct the relevant practices to prevent these measures from hindering the healthy development of Sino-Japanese economic and trade relations and maintaining the stability and smooth flow of global industrial and supply chains. China reserves the right to take countermeasures and will firmly safeguard its legal rights.
Source: Internet
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