Japans chipmakers still struggling with the difficulties of the 1990s

08/01/1997

Japan`s chipmakers still struggling with the difficulties of the 1990s

Peter N. Dunn, WaferNews, Nashua, New Hampshire

Japan`s semiconductor industry has had a difficult time during the 1990s. The collapse of the bubble economy in the early part of the decade brought fab building and expansion to a virtual halt, giving competitors elsewhere in Asia an opportunity to attack in DRAM production. Chipmakers and their suppliers got back on their feet in 1994 and 1995, only to run headlong into the unexpectedly sharp declines in DRAM prices that arrived in 1996.

Statistics from the Semiconductor Equipment Association of Japan (SEAJ) indicate that after declining in both fiscal 1996 and 1997, Japanese purchases of semiconductor manufacturing equipment are expected to resume growth in 1998 and 1999. The SEAJ survey (Table 1) suggested that Japan`s equipment makers will see a similar pattern, with domestic and export sales both heating up in fiscal 1998.

One bright spot, however, is the raw silicon market, where Japanese vendors are hastening to add capacity and expect to see export sales rise substantially in the new FY, with some gains also coming domestically. Other positive signs include aggressive fab expansion plans by consumer electronics giants Matsushita and Sony. The latter company intends to be among the early adopters of 300-mm wafer technology in Japan, with plans to build a facility in Nagasaki.