Japan's Semiconductor Industry Sees Record Sales Amid Uneven Profits

Japan's semiconductor industry saw significant growth in fiscal 2025, according to Tokyo Shoko Research. The 154 major manufacturers recorded a combined sales revenue of 7.91 trillion yen, a 17.1% increase from the previous year and the highest in five years.

The top company by sales was Kioxia, with revenue rising 38.5% to 2.26 trillion yen, driven by strong demand for high-performance SSDs for data centers.

Tokyo Shoko Research noted that while the market expanded, profits were uneven, with 42.8% of companies reporting lower earnings than a year earlier due to rising raw material and labor costs.

The report also highlighted the impact of the July 2026 Kumamoto earthquake on the industry, which caused disruptions to production sites and surrounding suppliers, leading to concerns about supply chain stability.