Silicon Production to Rebound with Semiconductor Market Recovery
Japan’s silicon production is set to recover significantly in 2025, with output expected to rise by 10% to 10,200 tonnes, following a dip in 2024. This growth matches the global semiconductor market’s recovery, which is driving silicon demand. Silicon is essential for manufacturing semiconductors, chips, solar panels, and electronic devices. The rise in production reflects both local demand and global trends in the electronics and technology sectors.
Positive Outlook for Domestic and Export Markets
Japan’s silicon sales are projected to grow by 11% in 2025, reaching 11,600 tonnes. Of this, 7,850 tonnes will be exported, and 3,750 tonnes will meet domestic demand. Both export and domestic sales are expected to increase by 10-11% compared to the previous year. This growth reflects strong global semiconductor market demand and local production efforts. Government support strengthens Japan’s role as a key player in the global tech supply chain.
Government Investment Fuels Semiconductor Growth
The Japanese government plays a crucial role in boosting the semiconductor sector. With ¥3.9 trillion ($26 billion) already allocated to chip production, its investments are enhancing Japan’s silicon production. Japan plans to increase funding for AI and semiconductor projects in October 2024, further cementing its semiconductor leadership. This support is expected to accelerate both local production and export growth.
Global Semiconductor Market Recovery Drives Local Demand
The global semiconductor market is showing signs of recovery, particularly in silicon wafer production. After a low period in early 2024, global shipments of silicon wafers are expected to rise, benefiting Japan’s silicon production. Increased demand for semiconductors from AI, automotive, and consumer electronics will continue to drive this growth, further strengthening Japan’s position in the global market.
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