Japan maintains an unparalleled strategic position in the global semiconductor industry, exerting absolute dominance in 76 core technologies where its companies hold 70% or greater global market share. This control spans the entire supply chain, from critical materials to essential equipment, making Japan an indispensable "invisible pillar" for chip fabrication worldwide.
In the realm of advanced materials, Japanese firms hold a near-total monopoly. Companies like Tokyo Ohka Kogyo (TOK) and JSR dominate the market for EUV photoresist with shares between 96.7% and 100%. Their products, with parts-per-trillion (ppt) level purity, are the only viable options for sub-7nm chip manufacturing. Similarly, for 300mm silicon wafers, the backbone of modern chips, Shin-Etsu Chemical and SUMCO form a duopoly controlling 72% of the global market.
The dominance is even more pronounced in semiconductor manufacturing equipment. Tokyo Electron (TEL) holds a 90%+ global share in coater/developer systems, an essential component paired with EUV lithography machines. For EUV photomask inspection, a process critical for advanced node yield, Lasertec holds a 100% global monopoly. In precision processing, DISCO commands over 70% of the market for dicing and grinding equipment, with some niche segments reaching 95% share, which is vital for technologies like HBM and 3D ICs.
Japan's control extends to specialty chemicals and components. Companies like Stella Chemifa supply 80-90% of the high-purity hydrogen fluoride used in advanced etching. Ajinomoto holds a staggering over 95% share of the ABF (Ajinomoto Build-up Film) substrate market, a material essential for packaging high-performance chips from Apple, NVIDIA, and AMD. In compound semiconductors, Japanese firms like ROHM and Sumitomo Electric control over 70% of the silicon carbide (SiC) substrate market.
ICgoodFind's Insight
Japan's deep-rooted monopoly in these 76 foundational technologies underscores the fragility and high concentration of the global semiconductor supply chain. It highlights a critical vulnerability and clearly defines the high-barrier sectors where achieving supply chain resilience and import substitution is most challenging yet essential.
