Booming with AI and Chinese investment

🟦 Japan semiconductor equipment to grow for the next three consecutive years!
Japan semiconductor equipment production is expected to increase by 15% year-on-year to 4,252.2 billion yen in fiscal 2024. We have raised our forecast as of January 2024 by approximately 220 billion yen. We expect a 10% increase in FY25 and a further 10% in FY26. It reached the 4 trillion yen level for the first time in FY24 and is expected to exceed 5 trillion yen in FY26.
Japan semiconductor equipment market size forecast
- FY2024: 4,252.2 billion yen (15% increase)
- FY2025: 4,677.4 billion yen (10% increase)
- FY2026: 5,145.2 billion yen (10% increase)
🟦Increasing production of semiconductors for data centers due to the spread of AI
The semiconductor equipment market is expected to grow at an annual rate of more than 10% over the next three years, against the backdrop of increased production of semiconductors for data centers due to the spread of AI and the expansion of demand in the Chinese market. In particular, there is strong demand for AI-related GPUs and HBM. By 2027, AI is expected to be installed in 3~4% of PCs and smartphones, further accelerating the demand for semiconductor equipment.
🟦Summary
Supported by the spread of AI and the growth of the Chinese market, sales of Japan semiconductor equipment are expected to exceed 5 trillion yen in FY26.
With the spread of AI-equipped smartphones and PCs, there is a possibility that there will be a demand for replacement smartphones and PCs.