Thanks to Silicon Island, Japan's IC production has seen double-digit growth for 13 consecutive months
TechNews Financial News
January 6, 2025
By MoneyDJ
January 6, 2025
By MoneyDJ
With the support of Japan's "Silicon Island", Japan's IC output has shown a strong recovery, with monthly output increasing by double digits (more than 10%) for 13 consecutive months. The output from January to October 2024 has exceeded the full-year level of 2023.
Jiji Press reported on the 3rd that with the support of Kyushu (including Fukuoka Prefecture, Saga Prefecture, Nagasaki Prefecture, Kumamoto Prefecture, Oita Prefecture, Miyazaki Prefecture and Kagoshima Prefecture), where semiconductor factories are concentrated, Japan's IC output has shown a strong recovery. A survey by the Ministry of Economy, Trade and Industry of Japan shows that as of October 2024, Japan's IC output has seen double-digit growth for 13 consecutive months. As new semiconductor factories will be put into production one after another after 2025, Japan's IC output is expected to rise again.
From January to October 2024, Japan's IC output surged 32.6% year-on-year to 2.2299 trillion yen, surpassing the 2.1082 trillion yen for the whole of 2023. Japan once had a high market share in the global semiconductor market, with IC output exceeding 4.4 trillion yen in 2000. However, the rise of overseas manufacturers such as Taiwan and South Korea later led to a recession in Japan's semiconductor industry, with output shrinking to 1.707 trillion yen in 2020, less than half of its peak period.
In recent years, due to the accelerated digitalization, the demand for semiconductors has increased, and Japan's IC output has bottomed out. In particular, Kyushu, which accounts for 50% of Japan's IC output, set a new monthly record in August and September 2024.
At a regular press conference held on December 27, 2024, Kei Kimura, governor of Kumamoto Prefecture, Japan, stated that JASM, the operating subsidiary of TSMC's Kumamoto factory, informed that "the Kumamoto Factory (Kumamoto Factory 1) has started mass production." Kei Kimura explained that in order to monitor factory wastewater, JASM was required to notify the government when production began. JASM informed the government on December 23 that mass production had begun, but the actual date of mass production was unknown.
TSMC's Kumamoto plant has 28/22nm and 16/12nm processes, with a monthly production capacity of 55,000 wafers. TSMC's Kumamoto Fab 2 began construction in January-March this year, with the goal of starting operations by the end of 2027 and entering the 6/7 nanometer process. TSMC's Kumamoto Plant 1 and 2 have a combined monthly production capacity of more than 100,000 wafers.
Related link: https://finance.technews.tw/2025/01/06/japan-ic-output-increased-by-more-than-10-for-13-months/
Image source: shutterstock
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