Japan’s Silicon Output to Recover in 2025 Amid Semiconductor Market Growth

Silicon Production to Rebound with Semiconductor Market Recovery
Japan’s silicon production is projected to see a significant recovery in 2025, with output expected to rise by 10% to reach 10,200 tonnes, following a dip in 2024. This increase aligns with the global semiconductor market’s recovery, which is driving demand for silicon, a critical material for semiconductor manufacturing. The anticipated growth is not only a response to domestic demand but also a reflection of broader global trends in the electronics and technology sectors, which are heavily dependent on silicon for the production of chips, solar panels, and other electronic devices.

Positive Outlook for Japan’s Domestic and Export Markets
Japan’s silicon sales are forecast to grow by 11% in 2025, reaching 11,600 tonnes. This increase will be split between domestic consumption and exports, with approximately 7,850 tonnes expected to be shipped overseas and 3,750 tonnes to be consumed domestically. Both export and domestic figures are expected to grow by around 10-11% compared to the previous year, reflecting the robust demand in global semiconductor markets as well as increased local production efforts. Japan’s semiconductor sector is benefiting from substantial government support, which is bolstering the country’s position as a key player in the global tech supply chain.

Government Investment Fuels Semiconductor Growth
The Japanese government has played a crucial role in fostering growth within the semiconductor industry. With ¥3.9 trillion (approximately $26 billion) already allocated for chip production, the government’s strategic investments are expected to strengthen Japan’s silicon production capabilities. Furthermore, in October 2024, Japan committed to further increasing public funding for AI and semiconductor projects, reinforcing its long-term plans to secure its position as a leader in the semiconductor market. This support is expected to accelerate both domestic production and export growth, positioning Japan as a key supplier in the global market.

Global Semiconductor Market Recovery Drives Local Demand
On the global front, signs of recovery in the semiconductor industry are already emerging, particularly in the production of silicon wafers, a key component in semiconductor manufacturing. After hitting a low point during the January-March period of 2024, global shipments of silicon wafers are expected to rise, which will positively impact Japan’s silicon production. The global demand for semiconductors is expected to continue its upward trajectory, driven by increased demand from industries like AI, automotive, and consumer electronics, all of which rely heavily on high-performance chips.