Japan Maintains Global Leadership in Semiconductor Materials Amid Rapid Chinese and Korean Advances in Memory Sector

As the artificial intelligence (AI) wave sweeps across the globe, the semiconductor industry is undergoing structural transformation. According to the 2025 'Market Share Survey of Major Products and Services' published by Japanese media, Japanese companies demonstrate strong competitiveness in critical semiconductor materials.

In silicon wafers—the foundation of semiconductor manufacturing—Shin-Etsu Chemical and SUMCO hold 26.3% and 17.8% global market shares respectively, ranking first and second worldwide. Together, they capture 44.1% of the global market, further widening their lead over competitors from Taiwan, Germany, and South Korea.

In the crucial photoresist sector, Tokyo Ohka Kogyo (TOK), JSR, and Shin-Etsu Chemical collectively command 60.5% of the global market share.

Beyond technological strength, the industry's operational model is also shifting. According to the Nikkei, citing a report from Growth Research, the semiconductor industry is transitioning from a 'cyclical business' driven by supply-demand fluctuations to an 'order-based business'.

Additionally, South Korean researcher Yonghee Han notes that long-term supply agreements (LTAs) are expanding into areas such as multilayer ceramic capacitors (MLCCs) and packaging substrates. Contract terms are evolving to include advance payments, minimum purchase obligations, and 'take-or-pay' clauses to enhance supply chain stability. Major manufacturers like Samsung Electronics and SK Hynix have already secured long-term contracts for most of their production capacity to cope with the intense competition driven by AI infrastructure investments.

In the memory market, South Korean firms still dominate the DRAM sector, with Samsung and SK Hynix holding significant combined market share. However, Japanese companies are showing signs of recovery. Kioxia, which previously faced operational challenges, has seen its stock price surge over the past year due to strong demand for NAND flash memory from AI data centers, showcasing its potential for technological revival.

Meanwhile, Chinese firm CXMT (ChangXin Memory Technologies) has doubled its DRAM market share from 3% to 6%, demonstrating strong growth momentum.

The World Semiconductor Trade Statistics (WSTS) forecasts that the global semiconductor market will reach $1.51 trillion by 2026, with expected year-on-year growth.

Looking ahead, as semiconductor competition shifts toward full supply chain capabilities, the strategic value of materials—as the 'cornerstone' of manufacturing—will be redefined. Japanese scholar Akio Mabuchi emphasizes that while Japanese firms possess technological moats, they still face strong competition from South Korean rivals in cutting-edge areas such as high-bandwidth memory (HBM).