Japan’s semiconductor equipment sales set the third highest record in history
Sales of semiconductor (chip) equipment in Japan are booming. In June, sales increased by 40%, setting the third highest record in history. Share prices of related stocks are happy today.
According to Yahoo Finance’s quotation, as of the morning of the 29th, semiconductor equipment giant Tokyo Weinix Technology Co., Ltd. rose 1.53%, Screen Holdings soared 3.33%, and wafer dicing machine manufacturer DISCO rose 1.63%.
According to preliminary statistics released by the Semiconductor Manufacturing Equipment Association of Japan (SEAJ) on the 28th, due to the popularization of 5G and the epidemic, the demand for housing economy has increased, driving the expansion of demand for chips for a wide range of purposes such as smartphones, PCs, and data centers. Sales of Japanese-made semiconductor (chip) equipment (3-month moving average) increased by nearly 40% from the same month last year (38.3%) to 249.501 billion yen, the sixth consecutive month of growth and the second consecutive monthly increase. It has reached a double-digit (above 10%) level in 4 months, and monthly sales have set the third highest record in history since 2005 with comparable data (only lower than 305.4 billion yen in May 2021 and 4 in 2021. 282 billion yen in the month).
Z7.jpg
The cumulative sales of Japanese-made chip equipment from January to June 2021 increased by 27.5% year-on-year to 1,445.955 million yen.
SEAJ announced its forecast report on July 1st that due to active investment in logic/wafer foundries and high-level investment in overall memory, it is estimated that 2021 (April 2021-2022) will be made in Japan. Chip equipment sales (referring to Japanese companies’ equipment sales in Japan and overseas) will increase by 22.5% annually to 2,920 billion yen, far better than the previous estimate (January 2021) of 2.5 trillion yen. Yuan and Yuan will set a new record for the second consecutive year.
Regarding the future outlook, SEAJ stated that it is estimated that the investment level will be maintained with logic and foundries as the center. Therefore, it is estimated that the sales of Japanese-made chip equipment in 2022 will increase by 5.1% to 370 billion yen (previously). The second estimate is 2,630 billion yen), it will exceed the 3 trillion yen mark for the first time, and it will increase by 4.9% annually to 3.22 trillion yen in 2023. The compound annual growth rate (CAGR) for the period from 2021 to 2023 is estimated to be 10.5%.
SEAJ Chairman Kazuo Ushida pointed out, “There is a serious shortage of chips and factories continue to show a state of full capacity. Countries are implementing supply chain enhancement measures.”
Memory demand is booming this year, global semiconductor sales will hit a record high
The Japan Electronics and Information Technology Industries Association (JEITA) issued a press release on June 8 stating that according to the latest forecast report released by the World Semiconductor Trade Statistics Association (WSTS), the demand for memory is extremely prosperous, which will drive global semiconductor sales this year (2021). It is estimated to increase by 19.7% annually to US$527.223 billion, which is far better than the previous (December 2020) estimate of US$469.403 billion (yearly increase of 8.4%). The annual growth rate will reach double digits for the first time since 2018 (10 % Above) level, and annual sales will far exceed 2018’s 468.7 billion U.S. dollars, a record high.
WSTS pointed out that due to the current very strong semiconductor demand, it seems difficult to find the factors that will show a rapid decline. Therefore, it is estimated that global semiconductor sales will increase by 8.8% annually to 573.440 billion U.S. dollars in 2022, which will continue to set a new record high.