The Role of Semiconductor Distributors in the Japanese Semiconductor Market

In 2009, the global semiconductor market was worth $219.6 billion. Japan has the third largest semiconductor market at $38.3 billion, behind America and China. Japan has a unique semiconductor distribution system based on close relations between semiconductor distributors and major IDMs (integrated device manufacturers), electronics manufacturers, and automobile manufacturers. Because of this, it is difficult for overseas semiconductor manufacturers and fabless semiconductor companies to enter the market. Semiconductor distributors play a significant role in Japan’s semiconductor distribution system. The semiconductor market here has four main characteristics. These characteristics are the reason why Japan’s semiconductor distribution system has developed the way it has.