Japan Foundry Equipment Market

Japan Foundry Equipment Market Overview:

The Japan foundry equipment market size reached USD 282.61 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 491.97 Million by 2033, exhibiting a growth rate (CAGR) of 5.70% during 2025-2033. The market is driven by the global push for sub-7nm semiconductor nodes, fueling demand for Japan’s precision-engineered EUV lithography, etching, and deposition systems. Government initiatives, such as the "Chiplet Strategy" subsidies, further stimulate production, while rising AI, 5G, and IoT adoption ensures sustained equipment demand. Concurrently, the shift toward energy-efficient foundry tools, supported by Japan’s Green Innovation Fund and ESG-aligned innovations, strengthens competitiveness, further augmenting the Japan foundry equipment market share.

Japan Foundry Equipment Market Trends:

Increasing Demand for Advanced Semiconductor Manufacturing Equipment

The market is experiencing significant growth due to the rising demand for advanced semiconductor manufacturing tools. As global semiconductor manufacturers push for smaller node technologies (below 7nm) to enhance chip performance, Japanese equipment suppliers are capitalizing on their expertise in precision engineering. Key technologies such as extreme ultraviolet (EUV) lithography, etching systems, and deposition equipment are in high demand. Companies are expanding production capacities to meet orders from leading foundries, including TSMC and Samsung. Additionally, Japan’s strong supply chain for materials and components supports this trend, ensuring reliable equipment production. Japan's semiconductor sector is experiencing tremendous growth, further supported by USD 183 Million in government investment in edge-AI accelerator programs and new alliances, such as Tenstorrent's entry into next-generation chips. The country remains a global leader in delivering key materials, such as silicon wafers, with companies such as Tokyo Electron holding 90% of the global market for photoresist coating tools. Japan's advanced foundry technology and niche machinery network remain pivotal in shaping the future of the semiconductor industry. Government initiatives, such as subsidies for domestic semiconductor production under the "Chiplet Strategy," further propel Japan foundry equipment market growth. With the increasing adoption of AI, 5G, and IoT devices, the need for cutting-edge foundry equipment is expected to sustain long-term expansion in Japan’s market.

Shift Toward Sustainable and Energy-Efficient Equipment

Sustainability is becoming a key trend in the market as semiconductor manufacturers seek energy-efficient solutions to reduce operational costs and carbon footprints. Japanese equipment providers are innovating with low-power consumption tools, waste reduction systems, and eco-friendly manufacturing processes. For example, advanced dry etching and chemical vapor deposition (CVD) systems now incorporate energy-saving features without compromising performance. The government’s Green Innovation Fund supports R&D in sustainable semiconductor production, encouraging companies to adopt greener technologies. The Japanese government is providing USD 660 Million (100 Billion JPY) to drive digitalization as part of its Vision for a Digital Garden City Nation, which also involves major investment in sustainable semiconductor production. The Green Innovation Fund, a part of this master plan, supports research and development in power-saving technologies, thus enhancing Japan's position in the global semiconductor industry. This also drives innovation in green manufacturing processes to the advantage of Japan's foundry equipment industry. Furthermore, global foundries are setting net-zero targets, driving demand for environmentally friendly equipment. Japan’s leadership in precision engineering positions it as a critical supplier of sustainable foundry tools, aligning with global ESG (Environmental, Social, and Governance) standards. This shift not only enhances market competitiveness but also reinforces Japan’s role in the future of sustainable semiconductor manufacturing.

Japan Foundry Equipment Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on equipment type, foundry process, and application.

Equipment Type Insights:

• Molding Machines
• Melting Furnaces
• Pouring Systems
• Automated Guided Vehicles (AGVs)

The report has provided a detailed breakup and analysis of the market based on the equipment type. This includes molding machines, melting furnaces, pouring systems, and automated guided vehicles (AGVs).

Foundry Process Insights:

• Green Sand Casting
• Investment Casting
• Die Casting
• Permanent Mold Casting
• Centrifugal Casting

A detailed breakup and analysis of the market based on the foundry process have also been provided in the report. This includes green sand casting, investment casting, die casting, permanent mold casting, and centrifugal casting.

Application Insights:

• Automotive
• Aerospace and Defense
• Construction
• Energy
• Industrial Machinery

The report has provided a detailed breakup and analysis of the market based on the application. This includes automotive, aerospace and defense, construction, energy, and industrial machinery.

Regional Insights:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Japan Foundry Equipment Market News:

• December 18, 2024: Rapidus Corporation successfully installed ASML's NXE:3800E EUV lithography system in its IIM-1 foundry in Hokkaido, marking Japan's first adoption of EUV technology in large-volume semiconductor manufacturing. The equipment is intended for the manufacturing of 2nm GAA semiconductors, with a pilot line expected to become operational in April 2025. The installation also includes leading-edge manufacturing tools and automated material handling systems, thus strengthening Japan's semiconductor foundry capabilities.

Japan Foundry Equipment Market Report Coverage:

Key Questions Answered in This Report:

• How has the Japan foundry equipment market performed so far and how will it perform in the coming years?
• What is the breakup of the Japan foundry equipment market on the basis of equipment type?
• What is the breakup of the Japan foundry equipment market on the basis of foundry process?
• What is the breakup of the Japan foundry equipment market on the basis of application?
• What is the breakup of the Japan foundry equipment market on the basis of region?
• What are the various stages in the value chain of the Japan foundry equipment market? 
• What are the key driving factors and challenges in the Japan foundry equipment market?
• What is the structure of the Japan foundry equipment market and who are the key players?
• What is the degree of competition in the Japan foundry equipment market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan foundry equipment market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Japan foundry equipment market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan foundry equipment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.