Seven Facts about Japan Semiconductor Manufacturing Supply Chain
1. Japan is #1 rank in terms of installed fab capacity
Japan accounts for 22 percent (with discretes) of the global total installed fab capacity in 2014 according to the latest SEMI World Fab Forecast report, and Japan leads other regions including Korea and Taiwan that accounts for 17 percent and 18 percent respectively.
Source: SEMI World Fab Forecast, August 2014
As to 300mm fab capacity, Japan ranks #3 with 19 percent share of global capacity following Korea with 27 percent share and Taiwan with 24 percent share.
Japan leads other regions with 200mm fab capacity with more than 110 production fabs (>10,000 wpm) that produce MCUs, MEMS, sensors, analog devices, power devices, LCD drivers, and many other more-than-Moore devices. SEMI sees these fabs as potential manufacturing platforms for the Internet of Things devices that are expected to ramp in the next decade.
2. Japan is #2 rank in terms of materials consumption
Japan is the second largest semiconductor materials market as measured by revenue that accounts for 17 percent of the 44.7 billion global materials market. This is due to the large installed fab capacity base that resides in Japan. The largest materials market is Taiwan that accounts for 21 percent of the global materials market in 2014 due to its second largest fab capacity and expanding OSATs activities in the advanced packaging area.
Materials consumption has a strong correlation with the semiconductor device in volume terms. Thus the large consumption of semiconductor materials indicates Japan is quite active in front-end manufacturing at 200mm and smaller diameters fabs as well as 300mm fabs.
3. Japan will spend 25% more on new equipment by 2015
Japan is expected to spend $3.65 billion on new equipment this year that accounts for 9 percent of the global equipment market. The growth will continue in 2015 to reach $4.22 billion. In these two years, Japan equipment market will grow by 25 percent.
Source: SEMI, Midyear Semiconductor Equipment Forecast, 2014 (www.semi.org/en/MarketInfo/EquipmentMarket)
Fab expenditure in Japan includes Toshiba and SanDisk investment in Yokkaichi to manufacture 3D NAND Flash memories, Micron-Elpida’s mobile DRAM technology upgrade in Hiroshima, and on-going Sony investment in CMOS image sensors.
4. Japan supplies more than 50% of the materials consumed globally
Japan suppliers dominate key materials market both for front-end and back-end processes that include silicon wafers, compound semiconductor wafers, photomasks and photoresists for front-end processes, and bonding wires, lead frames and mold compounds for back-end processes. In total, SEMI estimates Japan supplies over 50 percent of the global materials market in terms of revenue.
You may remember the materials shortage after the 2011 earthquake in Japan. At the time, we found many of semiconductor materials rely on the same second tire suppliers for the high-quality raw materials. Taking account of this, Japan’s position in the global materials market is quite strong.
5. Japan supplies over 30% of new equipment purchased globally
Among top 10 worldwide semiconductor manufacturing equipment vendors by revenue reported by Gartner, five companies are headquartered in Japan. With these and other equipment companies, Japan supplies around 35 percent of new equipment global market.
Supporting the equipment companies in Japan is the complete supply chain available domestically that includes parts and components supply and metal working and machining services.
6. Japan is the leader in producing and developing advanced LEDs
In about a month, three Japanese scientists, Isamu Akasaki of Meijo, Hiroshi Amano and Shuji Nakamura will be receive the Novel Award in Physics for their invention of efficient blue LEDs which has enabled bright and energy-saving white light sources. Their achievements made the LED to a significant electronics industry segment.
Japan is very active in this segment with 21 LED dedicated fabs and leads the market with capabilities for producing advanced LED devices on large diameter sapphire wafers and in developing GaN on Silicon technology.
Source: SEMI Opto/LED Fab Forecast (www.semi.org/en/MarketInfo/FabDatabase)
7. SEMICON Japan will open on December 3 to showcase the Japanese semiconductor supply chain
To learn more about semiconductor industry and the supply chain, please visit SEMICON Japan to be held on December 3 to 5 in Tokyo. The registration is open online at www.semiconjapan.org/en/.
SEMICON Japan 2014 will back in Tokyo after 24 years being held in Chiba prefecture. This change is highly welcomed by virtually all exhibitors and visitors. The new venue, Tokyo Big Sight, is located within the Tokyo metropolitan area and takes only 30 minutes from Haneda international airport and Tokyo railway station.
Content-wise, the most new thing is World of IoT, a-show-within-a-show to be held in SEMICON Japan show that will feature key IoT enablers such as Intel, Toyota Motors and Cisco. With “World of IoT,” SEMICON Japan will be the first show to exhibit the entire ecosystem of the Internet of Things from semiconductor manufacturing to IoT devices and systems.
If you plan to visit SEMICON Japan, do not miss the nine forums in the SEMICON Japan SuperTHEATER that include the opening keynotes, IoT Forum, and Market Forum. The forums are with simultaneous Japanese-English translation and are all free-of-charge but pre-registration is required.
November 4, 2014