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

Silicon Metal

Japan's domestic silicon output is poised for a significant recovery in 2025, driven by the global uptrend in the semiconductor market, according to a forecast from the Japan Society of Newer Metals (JSNM). Following a dip in 2024, Japan's silicon production is expected to grow by 10%, reaching 10,200 tonnes in 2025.

Semiconductor Market Recovery Fuels Growth

The forecasted recovery in Japan's silicon output is part of a broader global trend, particularly in the semiconductor industry. As the global semiconductor market rebounds, domestic silicon sales in Japan are also predicted to increase by 11%, reaching 11,600 tonnes in 2025. This growth will be split between exports and domestic consumption, with 7,850 tonnes projected to be exported and 3,750 tonnes to be consumed domestically. Both export and domestic consumption figures are set to rise by approximately 10-11% from the previous year.

Japan's semiconductor industry is benefiting from government support, which has been instrumental in boosting domestic production. The Japanese government has already allocated ¥3.9 trillion ($26 billion) to chip production, providing a solid foundation for future growth. On October 30, Japan further pledged to expand its public funding for AI and semiconductor investments, signaling a continued commitment to strengthening its semiconductor sector.

Global Semiconductor Market Shows Signs of Recovery

There are already signs of recovery in the global semiconductor market, which is expected to positively impact Japan's silicon output. Global silicon wafer shipments, a key indicator of semiconductor production, are believed to have hit their lowest point during the January-March period, with signs of growth emerging thereafter.

With both domestic and international factors contributing to the positive outlook, Japan's silicon output is set to experience a rebound in 2025, supporting the country's broader semiconductor industry and bolstering its role in the global supply chain.