Sales of semiconductor manufacturing equipment in Japan have been reportedly strong, with April 2024 witnessing the largest increase in sales in 17 months, continuing to surpass the JPY 300 billion mark and setting a new record for the highest monthly sales. The sales volume for the period from January to April also reached a historical high for the same period.

The Semiconductor Equipment Association of Japan (SEAJ) announced on May 27th that the sales of Japanese-made semiconductor equipment in April 2024 (three-month moving average, including exports) reached JPY 389.106 billion, an increase of 15.7% compared to the same month last year. This marks the fourth consecutive month of growth, showing the largest increase in 17 months (since November 2022), with a remarkable growth rate of 19.1%.

Monthly sales have exceeded JPY 300 billion for the sixth consecutive month, surpassing the previous record of JPY 380.929 billion in September 2022, setting a new historical high for single-month sales.

Compared to the previous month (March 2024), sales grew by 6.4%, marking the sixth consecutive month of month-on-month growth.

The cumulative sales of Japanese semiconductor equipment from January to April 2024 reached JPY 1.387079 trillion, a 9.4% increase compared to the same period last year, setting a new historical high for this period.

Japan’s global market share of semiconductor equipment (calculated based on sales) stands at 30%, making it the second-largest in the world, following the United States.

In a financial report press release on May 10, Japanese chip equipment giant Tokyo Electron (TEL) indicated that the increased demand for DDR5 and HBM from the second half of this year is expected to drive a recovery in investment in the leading-edge DRAM.

As a result, the global market size for front-end chip manufacturing equipment (Wafer Fab Equipment; WFE) in 2024 is projected to grow by 5% year-on-year to approximately 100 billion USD, matching the current historical high recorded in 2022 (around USD 100 billion). Additionally, with continued growth in AI servers and a recovery in demand for PCs and smartphones, the WFE market is anticipated to see a double-digit increase (over 10%) in 2025 compared to 2024.

In a financial report press release on May 9, semiconductor equipment company Screen Holdings stated that due to investments in mature processes in China and investments in the most advanced processes in Taiwan, the WFE market is expected to grow in 2024, with an estimated annual increase of about 5%.

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• [News] Micron Reportedly Set to Build New DRAM Plant in Hiroshima, Japan, Operational Expected by End of 2027
• [News] A Subsidy Wave Sweeping in the US, Europe and Japan amid the Cut-Throat Chip Competition

(Photo credit: TEL)

According to a report from a Japanese media outlet The Daily Industrial News, it reported that Micron Technology plans to build a new plant in Hiroshima Prefecture, Japan, for the production of DRAM chips, aiming to begin operations as early as the end of 2027.

The report estimates the total investment to be between JPY 600 billion and 800 billion (roughly USD 5.1 billion). Construction of the new plant is scheduled to begin in early 2026, with the installation of extreme ultraviolet (EUV) lithography equipment.

The Japanese government has approved subsidies of up to JPY 192 billion (roughly USD 1.3 billion) to support Micron’s production of next-generation chips at its Hiroshima plant. The Ministry of Economy, Trade and Industry stated last year that this funding would help Micron incorporate ASML’s EUV equipment, with these chips being crucial for powering generative AI, data centers, and autonomous driving technology.

Micron initially planned to have the new plant operational by 2024, but this schedule has evidently been adjusted due to unfavorable market conditions. Micron, which acquired Japanese DRAM giant Elpida in 2013, employs over 4,000 engineers and technicians in Japan.

Beyond 2025, Japan is set to witness the emergence of several new plants, including Micron Technology’s new 1-gamma (1γ) DRAM production facility in Hiroshima Prefecture.

JSMC, a foundry subsidiary of Powerchip Semiconductor Manufacturing Corporation (PSMC), is collaborating with Japan’s financial group SBI to complete construction by 2027 and begin chip production thereafter.

Additionally, Japanese semiconductor startup Rapidus plans to commence production of 2-nanometer chips in Hokkaido by 2027.

Japan’s resurgence in the semiconductor arena is palpable, with the Ministry of Economy, Trade, and Industry fostering multi-faceted collaborations with the private sector. With a favorable exchange rate policy aiding factory construction and investments, the future looks bright for exports.

However, the looming shortage of semiconductor talent in Japan is a concern. In response, there are generous subsidy programs for talent development.

Read more

• [News] A Subsidy Wave Sweeping in the US, Europe and Japan amid the Cut-Throat Chip Competition
• [News] Micron Slightly Raises Capital Expenditure for 2024, HBM Expected to Further Drive Revenue Growth in 2025

(Photo credit: Micron)

Following its success in the LCD panel market, China’s BOE Technology Group plans to lead in the OLED panel sector as well. According to a report from Japanese media outlet Nikkei News on May 27th, BOE, China’s largest panel manufacturer, plans to boost its OLED panel production capacity by more than a half compared to the current level within the next three years.

As per the same report from Nikkei News, BOE has established a series of LCD plants with support from the Chinese government. In the OLED panel sector, BOE is also said to be eyeing on becoming the market leader by expanding production and catching up with South Korean companies like Samsung Electronics.

Reportedly, BOE’s new OLED panel plant “B16” in Chengdu, Sichuan Province, began construction in late March. The goal is to complete the plant building by 2024, install manufacturing equipment by September 2025, and start mass production in 2026, producing 8.6-generation OLED panels. BOE’s competitor, Samsung Electronics, is also said to be looking for mass production of 8.6-generation OLED panels in 2026 by upgrading its existing plants.

The same report further indicates that BOE is actively hiring talented professionals from Japan and South Korea and leveraging global suppliers. Thus, BOE’s OLED panel technology has reportedly gained recognition, successfully entering Apple’s iPhone OLED panel supply chain, serving as a catalyst for its growth.

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• Shipments of OLED Monitors Hit 200,000 Units in 1Q24, Annual Forecast to Reach 1.34 Million, Says TrendForce[News] NVIDIA’s H100 Chip Heat Declines, CoWoS Capacity Eases

(Photo credit: BOE)

According to foreign media reports on May 25, Russia’s first lithography machine has been completed and is currently undergoing testing. Vasily Shpak, Deputy Minister of Industry and Trade of the Russian Federation, pointed out that this equipment can ensure the production of 350nm (0.35μm) chips.

350nm chip is said to be relatively lagging by modern standards, but it can still apply to various industries such as automotive, energy, and telecommunications. The successful development of this lithography machine represents a milestone for Russia in achieving self-sufficient chip production in the future.

Currently, the global lithography machine market is still dominated by ASML, Nikon, and Canon.

According to publicly available information from foreign media, Russia has two main wafer fabs at present, Mikron and Angstrem. Mikron provides 65-250nm chip manufacturing capabilities, while Angstrem, which went bankrupt and reorganized in 2019, provides 90-250nm chip manufacturing with an 8-inch wafer fab. Both companies mainly offer chips for military, aerospace, and industrial applications. Therefore, the new home-made lithography equipment is expected to be supplied to these two companies.

Down the road, Russia aims to manufacture a lithography machine that can support the 130nm process by 2026. Previously, Russia announced the plans to achieve a 65nm chip node process by 2026, 28nm chip manufacturing domestically by 2027, and 14nm domestic chip manufacturing by 2030.

(Photo credit: TASS)

Applied Materials, the largest US semiconductor equipment manufacturer, has received subpoenas from the US Securities and Exchange Commission as well as the US Attorney’s Office of the District of Massachusetts in February, according to the latest report by Reuters.

Citing sources familiar with the matter, the report noted that Applied Materials is currently under investigation for allegedly sending equipment to SMIC, China’s leading chip maker, through South Korea without export licenses.

Previously, in November 2023, the semiconductor heavyweight received a subpoena from the US Commerce Department, requesting the company to provide information regarding specific shipments to Chinese customers, according to Reuters.

According to the financial report Applied Materials released in mid-May, China contributed 43% of its total revenue in the second quarter, while the country marked a 21% revenue share a year ago, showing a significant increase. On the other hand, Taiwanese and Korean markets contributed 15% of its total revenue, respectively, while the US market contributed 13%.

Recently, the U.S. government has been tightening sanctions on companies regarding their exports to China, in order to hinder the country from getting access to advanced technologies. In early May, the U.S. administration revoked the licenses of Intel and Qualcomm to supply semiconductor chips used in laptops and handsets to Huawei.