Japanese companies are cited as having competitive advantages in deposition, lithography and data centers, with specific examples including major materials and equipment manufacturers and business integration trends in 2026.
In thin-film deposition for semiconductor manufacturing, demand for high-purity gases and specialty chemicals is rising, with Nippon Sanso, Mitsui Chemicals, Central Glass, Kanto Denka Kogyo and Resonac among the companies cited. Sumitomo Bakelite, Shin-Etsu Chemical and Nippon Kayaku are among those cited for resin materials used in packaging, while Japanese companies are named in each of the silicon, organic-material and glass segments for interposers used in chiplets.
In lithography, demand is growing for photoresist coating and development equipment. ASML has a monopoly on front-end EUV lithography equipment, while Japanese manufacturers are expected to lead in KrF and ArF lithography equipment for back-end applications. Japanese companies are also involved in dry etching equipment, testers and mold encapsulation equipment associated with the shift to 3D structures. Daikin Industries, Mitsubishi Heavy Industries and Hitachi are cited as major manufacturers of power supply and cooling equipment for data centers, while expectations are also high for IOWN’s optical-electrical convergence technology.
Overall, Japanese semiconductor manufacturing equipment is performing well, accounting for approximately 30% of the global market, while materials account for approximately 50%. A basic agreement on the integration of the businesses of Fuji Electric, Mitsubishi Electric and Hitachi Energy is expected to be reached in March 2026.