TAIPEI (Taiwan News) — Japanese electronic component makers have lost more than 10 percentage points of global market share over the past two decades as Taiwanese and Chinese firms expand their presence, Nikkei Asia reported Saturday.
Japan Electronics and Information Technology Industries Association said Friday that shipments from roughly 60 Japanese member companies reached NT$908.23 billion (US$28.9 billion) in fiscal 2025, up 4% from a year earlier. This marks a second consecutive record high, driven by AI server demand.
However, the association’s estimates show Japan’s global share of electronic component production fell from 43% in 2006 to 32% in 2025. The decline reflects rapid capacity expansion and technological progress in China and Taiwan.
China’s growth has been supported by its large electronics manufacturing base and a 2021 state plan to strengthen domestic supply chains. Subsidies under the policy have helped firms expand into products such as multilayer ceramic capacitors used in AI servers.
Taiwan’s rise has been driven by its role as a major hub for contract electronics manufacturing. Local firms have also expanded globally through active mergers and acquisitions, increasing their market reach and influence.
Competition has also intensified in high-end segments of the market. South Korea’s Samsung Electro-Mechanics is expanding in AI server components, challenging Japanese leaders such as Murata Manufacturing and Taiyo Yuden.
Some Japanese companies are responding by shifting strategy. Murata Manufacturing is expanding into lower-priced product lines to broaden its competitive base, while Nippon Chemi-Con aims to regain commodity-grade market share and reduce costs by increasing overseas production.
