Japan’s evolving role in semiconductors and electronics
As demands from the semiconductor and electronics industries become increasingly complex, Japan’s equipment
and material manufacturers are on hand to provide market-leading solutions.
Global semiconductor growth contribution per application

Semiconductors market size, 2002 to 2030 (USD Billion)

CAGR, 2021-30, %7

CAGR: 8.7%
908.92598.9367651.03
590
35
5060
50466.32

9Growth contribution
per vertical, 2021-30, %1,06560

Wired communication

595

Consumer electronics

10130

Industrial electronics

15150

Automotive electronics2013280

Wireless communication

350

Computing and data
storage

100%

6170

225

2022

2023

2024

2025

2026

2027

Source: Vantage Market ResearchWith the emergence of new technologies suchas AI, VR, Big Data, the Internet of Things,
electric and autonomous vehicles, and 5G/6G
internet, demand for semiconductors continues
to grow at a rapid pace. Indeed, it is thanks tothe rapid advancement of semiconductors, thebuilding blocks of our digital world, that such
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as chips have become increasingly faster andsmaller, the materials and techniques used todevelop them must constantly evolve.
“This rapid advancement in semiconductor
technology is driving various applications, including the rising popularity of generative AI, and thedevelopment of virtual reality and autonomous
driving systems. Such innovations would not be
possible without continuous improvements in thesemiconductor industry, making it the driving force
behind numerous technological breakthroughs,”
highlights Toshiki Kawai, Representative Director,President and CEO of Tokyo Electron (TEL).
While Japan is no longer the dominant player
in global semiconductor production, Japanesecompanies still lead the world when it comesto the materials and manufacturing equipmentused to make chips. As such, they are wellplaced to support the demand for ever-smaller
and higher-performing semiconductors. One ofJapan’s leading players, TEL, which produces
equipment for the production of cutting-edge
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is doing just that, investing heavily in R&D to enTVSFJUTQSPDFTTJOHFRVJQNFOUJTUPQPGJUTmFME
“The semiconductor market reached USD CJMMJPO JO UIF  mTDBM ZFBS  BOE JU JT
projected to skyrocket to over USD 1 trillion
by 2030 (Source: 2022 (WSTS)/ 2030 (IBS,August 2023)), nearly doubling its size,” says.S ,BXBJ i(MPCBM EBUB USBGmD JT FYQFDUFE UP
have an average compound annual growth rate(CAGR) of 26% (Source: Omdia (1990-2030)),
growing tenfold in a decade. The future will also
see an increase in bit-based computing, alongsidequantum computing, and neural network-based
computer processing is anticipated.”“While some argue that we have entered the Big
Data era, we believe we are only on the cusp,” he2028

2029

2030

52021

252030Source: McKinsey & Companyadds. “Consequently, there will be a rising demand
for advanced semiconductor technologies. Currently, Tokyo Electron holds about 22,000 patents
for semiconductor production equipment, making
us the industry leader. To strengthen our position
GVSUIFS XFDPOUJOVFUPJOWFTUTJHOJmDBOUMZJO3% having already invested JPY 600 billion between
FY2018 and FY2022, with plans to invest over
JPY 1 trillion between FY2023 and FY2027. These
investments have resulted in groundbreaking
achievements, such as etching process equipment
capable of reaching a depth of 10 microns twoand a half times faster than previous capabilities
g over 40% less power.”
pwhile consuming
g manufacturer of materials, compop
A leadingnents and solutions for p
printed circuit boards(PCBs), FICT is also investingg heavilyy in R&D
to develop
p groundbreakinggg technologies.
g Havingg pioneeredpg such as Organicgtechnologies
Flip-Chippp BGA Substrate (FC-BGA), a globalg
standard in semiconductor substrate packaging,pg g
and F-ALCS (F-All Layery Connection Structure),
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wiringg boards (over 60 layers)
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efforts todayy are focusing
g on the transition
towards glass-madegsubstrates.
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g patternpp(line/space)miniaturization,transitioningg toward glassg
substrates becomesincreasingly
g y crucial,” says
y FICT’s former ppresident
Seijij Miyoshi.
y“Throughg our F-ALCS technology
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initiative, we aimed to pivot
ptoward laminatedglass technology.
ggy Unlike the conventional app
proach reliant on organic
pgmaterials, our transition
to gglass empowersp
us to layery these components.
p
A viable applicationpplies in potentialpcollaborations
with LCD panel
pmanufacturers. This collaboration
could involve integrating
gg a glass
g substrate into thesemiconductor ppackaging
g g with our G-ALCS (GlassAll Layery Z-Connection Structure) technology,
opening new avenues for advancement.”
Amid the increasing demand for chips, there
has been a revitalization of semiconductor production in both Japan and the United States.
In Japan, TSMC is establishing a new semiconductor manufacturing facility in Kumamoto incollaboration with Sony, while in the U.S., Intel
is building two new fabs as the U.S. government
has approved a package that will pump billions
into stimulating the industry. Such developments
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Co., Kanto Chemical, VALQUA and KEL.
With the revival of the industry in Japan, Dr.
Takuya Iwata, President of Iwata & Co. – which
provides high-purity chemicals and materials
essential for semiconductor manufacturing
processes – warns that enhancing the supply
chain will be crucial. “The paramount concern
regarding the semiconductor industry’s further
growth in Japan lies not only in investment but
also in bolstering supply chain resilience. It isDSVDJBMGPSUIF+BQBOFTFHPWFSONFOUUPFYUFOEsupport to local semiconductor manufacturers
and the companies that play a pivotal role insustaining the entire industry. By mirroring thedomestic supply chain structure implemented
by the automotive industry, we can fortify thesemiconductor sector’s stability and growth.”
For its part, Iwata established a subsidiary in2020, which is playing a crucial role in the rapidly
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region. “These small-scale factories epitomize
the essence of Japanese craftsmanship, andSMEs like ours possess and maintain advanced
Japanese technology,” adds Dr. Iwata. “Our subTJEJBSZSFQSFTFOUTPOFPGPVSDPSFTUSFOHUIT FYcelling in custom ordering production equipment
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system. Their contributions are indispensable tothe success of new semiconductor manufacturing brands and processes.”
VALQUA Group is a pioneering company inUIF mFMET PG TFBM FOHJOFFSJOH BOE SFTJOCBTFEmaterials for a wide range of industries, including
semiconductors. Chairman and CEO, Toshikazu
Takisawa, is optimistic about the company’s poUFOUJBMGPSHSPXUIBTBSFTVMUPGUIFFYQBOTJPOPG
the chip industry in Japan and the U.S. “We alignwith the U.S. and work with Western countries
to re-establish the supply chain together. TSMC
and Rapidus are investing and building factories
in Japan once again. And apparently, we areregaining the attention of these companies. We

are their global supplier, so we will be able to caterto them domestically too, in Japan. Also, we are
now about to build new factories in Japan, and weare relocating our manufacturing location from
China to other countries in the Asian region. I am
taking the U.S.-China decoupling rather positively
because it may serve as a trigger to bring backmonozukuri manufacturing probabilities to Japan.
Moreover, it could be the start of another technical innovation expansion in Japan.”
Like Iwata, Kanto Chemical supplies high-purity
chemicals to the semiconductor industry andalready exports its products to the U.S., while thecompany has been exporting to countries suchas Taiwan, Singapore, Malaysia, and China sincethe 1990s. “We are dedicated to strengthening
our presence in these countries and regions byenhancing our factories and providing comprehensive support to our local customers in thesemiconductor industry,” says Manabu Nozawa,President and CEO of Kanto Chemical. “Currently,
our priority market is the United States, which isexperiencing a resurgence in the semiconductor
sector. Given the discussions on economic security,
we are actively pursuing opportunities to penetrate the U.S. market. Our efforts are centered inJapan, and we are collaborating with Kanto-PPCin Taiwan and Kanto Corporation in the U.S., alongwith our partner companies, to launch a robust
sales promotion campaign within the U.S. market.”
Turning attention back to Japan, Sean M.
Stack, President and CEO of Proterial – which
supplies high-quality, cutting-edge materials toseveral industries, including automotives andsemiconductors – says that Japan offers anadvantageous ecosystem for semiconductor development in two key areas.
“First is the equipment used to manufacture
semiconductors, which is a big opportunity.
We support both equipment manufacturers
and chip makers by providing specialty steel,electric wires and cables, lead frame materials, and silicon carbide for the chip-making
process. Our relationship with customers in thisdomain is strong, and we constantly evaluate
investment opportunities every quarter to meetthe increasing demand, reduce lead times, andsecure the supply chain,” he explains.
“The second advantage of operating in Japanis the close proximity and collaboration withJapanese equipment manufacturers and chip
NBLFST5IJTQSPYJNJUZFOBCMFTFGmDJFOUDPPSEJnation and shorter lead times for securing equipment necessary for our materials production.
Customers are coming to us probably earlier
than expected because of the demand and theopportunities they see.”
A company that provides state-of-the-art connectors essential for industrial, automotive, electronics and communication equipment, including
5G and 6G technologies, KEL sees ample potential
for business growth with the prospective rebootof Japan’s semiconductor industry domestically.
“The more semiconductors are consumed andproduced, the more connectors are used. For
instance, when there is an increase in the usageof PCBs on which semiconductors are mounted,connectors that connect these PCBs see higher

demand,” explains president Akira Kasuga. “Ifsemiconductor development and engineering
return to Japan, it would facilitate application
development and provide more opportunities
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was challenging for KEL to participate in suchactivities overseas. The return of production anddevelopment to Japan, especially for automotive
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numerous automotive manufacturer clients.”
With the trend towards miniaturization,
semiconductors have become increasinglysmaller, and removing the nano-sized particles
that can impact their performance and quality
is a crucial part of the manufacturing, transport and packaging processes. In the area ofsemiconductor cleaning equipment, Japanesecompanies like AICELLO and Miyatsu have andwill continue to lead the charge.
“In semiconductor production, every step requires a particular chemical packed and transported with our containers. The size of semiconductor products is becoming smaller, thus, there
is a higher chance for contamination or impurities
during the process to cause defects to the end
product,” says Satoshi Morita, President and CEOof AICELLO Corporation. “To that end, because
chemical manufacturers are required to keep theirproducts as clean as possible, they also demand
the cleanest packaging with high purity. We are
the only company that can realize the needed
quality for plastic-based bottles for the storageof semiconductor-related chemical products.”
Miyatsu, meanwhile, has developed pioneering
technology that is a vital part of the semiconductor
process. The company’s MG6500R, for example,
is a batch-ashing device that removes impurities
or organic matter from the wafer. Chiharu Miyata,
Chairman and CEO of Miyatsu, explains: “At theheart of our MG Series lies the plasma emitter, avital component that has been a cornerstone ofour machinery for over two decades. Ashing, also
known as plasma etching, serves as an entry process and may seem daunting to some, but in reality,
JUJTOPUBTEJGmDVMUBTQFSDFJWFE0ODFUIFQMBTNBFNJUUFSBDIJFWFTTUBCJMJUZ JUFGmDJFOUMZDMFBOTUIFwafer surfaces, making it a crucial element in maintaining clean and smooth surfaces. This equipment
has been highly acclaimed by our customers due
to its safety and user-friendly nature.”
Moving beyond semiconductors to the wider
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materials for LCD and OLED technologies, aswell as silane coupling agents for semiconductor encapsulation materials. JNC’s performance
products for liquid crystals and organic EL cancontribute to energy conservation, while thecompany’s blue light-emitting materials support
the creation of OLED displays with high color
reproducibility that are less stressful on the eyes.
i*OUIFTJMJDPOFmFME XFBSFEFWFMPQJOHSFBDtive silicon agents and silicon coupling agentsthat can be applied to contact lenses and heatdissipation materials. Many coupling agents arealso used as semiconductor encapsulants,” says
JNC president Keizo Yamada, who also reveals
that the company hopes to play a role in a recently
announced joint venture between Japan Display

Inc and China’s HKC on OLED technology. “Somecompanies have expressed interest in our silicon
products in Europe and other regions outside ofthe U.S. and Asia, and we would like to launchand spread our silicon products in those regionsin the near future,” he adds.
The growing electronics industry has becomea priority area for Sanwa Pump, whose stainlesssteel magnetic pumps are used in the petrochemicals industry, electronics and semiconductor IC
manufacturing, as well in pharmaceuticals andfood processing. “The electronics industry has
become a focus area for us, along with the foodindustry. While petrochemicals remain important,XFBSFBDUJWFMZQVSTVJOHGVSUIFSEJWFSTJmDBUJPO
of our applications,” explains president Kiyotaka
Horiuchi, who hopes to establish more successful
business partnerships like that which led to thedevelopment of a new type of pump suited forsemiconductor applications.
“Looking to the future, we recognize the global
trend towards carbon neutrality. We aim tocontribute to this goal by aligning our business
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need for new technology, products, equipment,and development in this area. I believe that ourstainless steel magnetic pumps are well-suited for
applications that require liquid agents in achievingcarbon neutrality. We are committed to playing
a role in this important endeavor.”
Supporting the shift to carbon neutrality is also
an important endeavor for Nitto Kohki, which
manufactures couplings for electric vehicles (EVs),
hydrogen fuel stations and lithium-ion batteries(LiBs). “The material used for lithium-ion batteries is a liquid electrolyte solution that requires
couplings for its transportation,” says president
and CEO, Akinobu Ogata. “And the increased needfor LiBs is leading to an increase in Nitto Kohki’sbusiness as our products are a crucial part of thebattery-making process. Additionally, with theadvancements made in hydrogen, we are seeing anincrease in our business opportunities in that sector too. We have great potential in both directions.”
Due to the heaviness of LiBs, aluminum, which
has emerged as an alternative to ferrous steel
in the automotive industry, plays a crucial role inoffsetting the weight of these batteries in EVs. SEC
Carbon, which offers a range of innovative graphite
and carbon products used in several industries,
produces SK-B graphitized cathode blocks crucial
for aluminum production. “Utilizing aluminum helps
to reduce overall CO2 emissions, so we are indirectly
contributing to a carbon-neutral society, as ourcathode blocks facilitate aluminum production,”says Nakajima Koh, President of SEC Carbon.
“With the increasing prevalence of EVs, weanticipate further opportunities to fortify this
aspect of our business. To align with global trends,
we have set our sights on targeting the domestic
market in Japan, as well as China and the U.S. forexpansion in this sector.”“Our goal is to maintain our position as theworld’s leading provider of cathode blocks,”
adds Mr. Koh. “We are dedicated to pushing
the boundaries of innovation and introducing
special products that pave the way toward acarbon-neutral society.”