Japanese companies' strength in Japan's semiconductor market lies in their broad coverage, from manufacturing equipment through inspection and materials. The discussion cited domestic companies' portfolios and profit margins as specific examples.
This article presents the first part of a discussion on semiconductor market growth between long-term investor Michi Okei (桶井 道) and Yuya Shinkawa (新川 裕也), who runs semiconductor trading company Tonarism. Both emphasized that Japanese companies can provide a broad range of technologies and products in AI and semiconductors. While advanced semiconductors are becoming increasingly miniaturized, Japan was also said to have the capabilities to serve a wide range of applications, including general-purpose products for automobiles.
Shinkawa pointed out that Japan is a "giant" in semiconductor manufacturing equipment, accounting for approximately 30% of the global market. He explained that Lasertec, Advantest and Tokyo Electron offer broad product lineups in inspection, polishing and cutting equipment, serving both leading-edge and legacy applications. The breadth of Japanese companies' portfolios was positioned as a source of competitive strength.
NVIDIA's operating margin is said to have averaged approximately 47% over the past 5 fiscal years and to have reached around 60% in the fiscal year ended January 2026. Japanese companies were also said to have maintained high operating margins, averaging roughly 30% over the past 5 fiscal years. It was also noted that ASML has a margin of approximately 33%, while Lasertec and Disco have maintained relatively high margins of around 40%.
Japanese companies are also said to have strengths in supplying and producing ultrapure water and gases essential to manufacturing processes. Organo supplies ultrapure water equipment to TSMC, while Kurita Water Industries operates a broad range of businesses, including drinking water. In the industrial gas sector, where global consolidation is advancing, Nippon Sanso Holdings was ranked fourth globally.
Demand related to physical AI, including autonomous AI control, is expected to emerge in the future. Harmonic Drive Systems' and Nabtesco's technologies, FANUC's industrial robots and Sony Group's CMOS sensors were identified as potential keys. It was also suggested that, as the cycle changes, actual demand in AI- and semiconductor-related sectors will influence share price movements.