As semiconductor demand expands against the backdrop of AI adoption, former Kioxia R&D employee Mofu discussed the strengths and limitations of Japanese companies, pointing to equipment and materials as areas where Japan may be able to compete successfully. Kioxia’s market capitalization surged approximately 70-fold in about 1.5 years after its listing.
Investor interest in the semiconductor industry has grown alongside the spread of AI, and Kioxia Holdings’ market capitalization surged within about 1.5 years of its listing, temporarily reaching the upper tier among Japanese companies. Mofu, who has shared investment information as a former Kioxia R&D employee, examined the presence of Japanese companies from the perspective of their ability to produce at scale.
Japanese companies also have a certain level of capability in semiconductor equipment, but it was noted that Nikon and Canon lack competitiveness against the Dutch company ASML in lithography equipment. Tokyo Electron is highly regarded in the manufacturing-equipment field, but it was suggested that the company could face difficulties in mass production, cost reductions and global expansion. Mofu also said that while Japanese companies are advancing the development of cutting-edge technologies, they are often perceived as weak in cost competition in large-scale production.
The discussion also addressed opportunities for materials manufacturers created by supply bottlenecks. Nitto Boseki is attracting attention as a supplier of glass substrate materials, while the expansion of demand for IBIDEN’s substrate technology and products related to NVIDIA could lead to a new concentration of demand in the materials field. The expansion of AI demand is considered likely to create opportunities for materials companies that have operated in niche markets.
The discussion also touched on the structural evolution of semiconductor manufacturing, including back-end processes. IBIDEN’s substrate technology enables the design and manufacture of ultra-high-density substrates with approximately 20 layers, attracting attention worldwide. Drawing on his experience as an R&D employee, Mofu said he would interpret the evolution of the semiconductor performance race to identify the next investment opportunities. The article provides links to articles explaining related stocks and encourages attention to future developments.