Nikkei: Japanese Electronic Component Makers' Market Share Declines Amid Rise of Taiwanese and Chinese Firms

Central News Agency, Tokyo, May 31. According to a report by Nikkei Asia, the global market share of Japanese electronic component manufacturers has declined by more than 10 percentage points over the past 20 years as Taiwanese and Chinese firms have risen. The Japan Electronics and Information Technology Industries Association (JEITA) announced on the 29th that the shipment value of electronic components from about 60 member companies in fiscal year 2025 reached 4.61 trillion yen (approximately NT$910 billion), a 4% increase from the previous year, marking a record high for two consecutive years, driven mainly by demand related to AI servers. However, Japanese firms are gradually losing market share to overseas rivals. JEITA estimates that the global production value of electronic components in 2025 will be 34.36 trillion yen, with a compound annual growth rate (CAGR) of 3.8% from 2015 to 2025, while the CAGR for Japanese firms is only 2%. Japanese companies have traditionally focused on higher-profit price ranges and have invested less in the high-volume mid-range market. According to JEITA data, this has caused the global market share of Japanese firms to fall from 43% in 2006 to 32% in 2025. Nikkei Asia pointed out that the loss of market share by Japanese firms has occurred alongside the rise of Chinese and Taiwanese companies. China has numerous electronic assembly bases, and its massive production of smartphones and other electronic products has enhanced its technical strength and supply capabilities. China also launched a national-level plan in 2021 to strengthen its local electronic components industry through subsidies. Guangdong Fenghua Advanced Technology (Micro-Tech) produces multi-layer ceramic capacitors (MLCCs) that can be used in equipment such as AI servers, and the company has stated its goal to become a 'world-class' electronic component enterprise. Taiwan is a hub for electronic contract manufacturers, and its role as a supply base for smartphones and PCs has driven the growth of local suppliers. Taiwanese companies are also actively participating in M&A, which has contributed to their rising market share. Yageo acquired a US peer in 2018 and acquired Japanese temperature sensor manufacturer Shibaura Electronics in 2025. In addition, more non-Japanese companies are entering the high-end market. Samsung Electro-Mechanics of South Korea, which produces MLCCs, is expanding its layout in the high-performance product market for AI servers, increasing competitive pressure on Japanese firms such as Murata Manufacturing and Taiyo Yuden. According to Nikkei Asia, some Japanese firms have begun to fight back against Chinese and Taiwanese competitors. The strategy adopted by MLCC giant Murata Manufacturing is to expand its operations in the low-price product market, depriving rivals of the opportunity to accumulate technology. Although this may lower profit margins, Murata hopes to weaken the growth potential of overseas manufacturers. Nippon Chemi-Con, the world's largest aluminum electrolytic capacitor manufacturer, has also set 'recapturing market share for general-purpose products' as a goal in its medium-term plan ending in March 2029. The company plans to increase its overseas production ratio and lower its break-even point by more than 10 percentage points. President Kenichi Konno pointed out that although the gap in technical strength between Japanese firms and their Chinese and Taiwanese competitors remains large, rivals 'have the potential to catch up with their abundant financial resources.'