By hmimcu 
According to data from the Japan Semiconductor Manufacturing Equipment Association (SEAJ), sales of Japanese made semiconductor manufacturing equipment decreased by 2.1% in January compared to the same month last year, marking the first year-on-year decrease in sales since December 2020 in two years and one month.?
Although there has been a decline, the position of the Japanese semiconductor industry in the global semiconductor market still cannot be underestimated. According to IC? Insights data shows that in 2021, Japan will account for 6% of the global semiconductor market share, ranking fifth, next to the United States at 54%, South Korea at 22%, Taiwan, China at 9% and Europe at 6%.
Japan’s dominant “chip” in the semiconductor industry has never stopped and continues to expand. The recent “dual M” Japan has brought new hope
01
MLCC Parking Regulations: The Strong Want to Stay Strong
MLCC is one of the main passive patch components in electronic equipment. With the rapid development of the world’s electronic information industry, chip capacitors are growing at a rate of 10% to 15% annually. The development of MLCC has gradually diversified and is widely used in various military and civilian electronic equipment.
Today, the MLCC industry chain is dominated by Japanese manufacturers. It has absolute advantage in the upstream core materials and midstream device manufacturing, followed by the United States. Currently, there are over 20 MLCC manufacturers worldwide. Japanese companies such as Murata and TDK have strong advantages and are in the first tier; Enterprises in the United States, South Korea and Taiwan, China, such as Samsung Electric, KEMET, AVX and Guoju, are in the second echelon; Enterprises in Chinese Mainland, such as Fenghua High tech, Sanhuan Group, Yuyang Technology and Torch Electronics, are in the third tier due to their late start. The overall market share of Japanese companies is as high as 56%.
The reason why Japanese manufacturers are successful is that electronic components are different from other industries such as consumer electronics, and have high requirements for materials. Only good materials can make good components. Japan is unparalleled in material technology, so Korean and other manufacturers are also out of reach; The second is the production process of electronic components, which requires long-term continuous exploration and accumulation. The Japanese craftsmanship spirit and corporate culture are highly compatible; The third is the high-end downstream support. Japan adopts a strategy of selection and concentration, actively laying out high-end fields such as automotive electronics, robotics and high-end manufacturing, industrial control, aerospace, etc. The strong industrial demand makes it more high-end and refined.
The leading MLCC company in Japan belongs to Murata, and Murata Manufacturing is a leading global electronic component manufacturer established in October 1944. The main product is ceramic capacitors, ranking first in the world. Other leading products include ceramic filters, high-frequency components, sensors, etc. Since the emergence of MLCC, Murata has always maintained its position as the world’s number one, with a global share never lower than 20%. The company’s operating revenue for the fiscal year 2021 (as of March 2022) was approximately 1.8 trillion yen, of which approximately 40% came from MLCC.
The ‘chill’ that has persisted since the second half of 2022 seems to have eased slightly. MLCC’s destocking is nearing its end, and according to reports, Murata plans to build a new factory in Wuxi, Jiangsu, China to increase production of MLCC components – membranes. The investment amount is about 45 billion yen (approximately 2.2 billion yuan), accounting for about 20% of the annual equipment investment amount, setting a record for the highest single equipment investment. It is expected to be completed in April 2024.
TrendForce Consulting stated that since the weakening of demand for consumer electronics products in the third quarter of 2022, the demand for automotive orders has remained stable. MLCC suppliers have started to concentrate resources on developing automotive specification products and accelerating the pace of process technology improvement and production expansion. Murata continues to move towards the goal of increasing production capacity by 10% annually. Starting from the second quarter of 2023, it is expected that the monthly production capacity of MLCC for vehicle specifications will reach 25 billion units, firmly holding the market leader. TDK also announced in May 2022 that it will expand its vehicle production capacity at the existing Kitsuke factory in Iwate Prefecture, Japan. It is expected to officially mass produce in September 2024, with a monthly production capacity increase of 5-8 billion units. Samsung, Taiyin, and Guoju all saw significant growth in automotive production capacity in 2023, with an average monthly production capacity increase of 2-3 billion units.
02
MEMS: With a long history, are you worried about China’s anti hypermarket?
MEMS technology is essential in the era of intelligent sensors. MEMS is an electronic mechanical device developed on the basis of semiconductor manufacturing technology, integrating technologies such as lithography, corrosion, thin film, LIGA, silicon micromachining, non silicon micromachining, and precision instrument processing. It is a micro device or system that integrates micro sensors, micro actuators, micro mechanical structures, micro power sources, signal processing and control circuits, high-performance electronic integrated devices, interfaces, and communication. It has extensive applications in industrial electronics, automotive electronics, and medical electronics.
According to the distribution of enterprises producing MEMS sensors, the largest production capacity region in the world in 2018 was located in Japan. In 2021, American companies accounted for half of the domestic MEMS market share, but Japanese companies still ranked high, so the Japanese government attaches great importance to increasing investment. Among them, TDK is a global electronic component and electronic raw material giant, with its MEMS business mainly coming from InvenSense and Tronics. InvenSense is an American sensor company that was acquired by TDK in 2016 as part of its MEMS sensor business group. Tronics is a French sensor company acquired by TDK in 2016. In 2021, TDK’s MEMS business grew strongly, rising from 9th place in 2021 to 6th place.
Looking ahead to 2023, despite the slowdown in inflation in Europe and America, the global economy remains weak. Car manufacturers stimulate gas buying through price cuts, but also put the overall car market into a price competition cycle, so cost advantage will be the key. TrendForce Jibang Consulting stated that the bidding trend will increase the pressure of price reduction upstream and downstream in the supply chain, and the high gross profit of automotive MLCC for a long time may gradually decline. The high market share held by Japanese factories for a long time will be eroded after other companies join one after another.
However, TrendForce Jibang Consulting specifically stated that China’s electric vehicle sales are benefiting from the continuous increase in policy dividends, which is also a concern for Japan.
The sales of new energy vehicles in China have increased, the penetration rate of smart homes is constantly increasing, 5G base stations continue to be constructed on a large scale, and the growth of downstream application industries has also driven the increase in the size of the sensor market.
The average net profit margin of listed companies in the IDM industry of China’s MEMS industry chain has exceeded 20% for three consecutive years, reaching a peak of 27.9% in 2021 and 25.5% in the first three quarters of 2022, ranking first among the average net profit margins of listed companies in various links of the MEMS industry chain. In 2022, the R&D revenue ratio of the IDM industry significantly increased, with a year-on-year increase of 89.7%, reflecting the increasing emphasis on industrial innovation and R&D in recent years, and the gradual increase in R&D investment. In the current distribution of MEMS patents in countries, China has 4874 patents, accounting for 73.7%, far ahead of the United States and Japan, with significantly enhanced technological innovation capabilities.
The development of MEMS in China is also inseparable from the formation of a relatively complete research and development system. Peking University and Shanghai Jiaotong University have set up a State Key Laboratory for micro and nano processing technology, Tsinghua University has set up a key laboratory for intelligent micro systems of the Ministry of Education, and Southeast University has set up a key laboratory for MEMS of the Ministry of Education. In addition, the Chinese Academy of Sciences has set up the State Key Laboratory of Sensing Technology, Institute of Electronics, Institute of Microsystems, Suzhou Institute of Nanotechnology, Key Laboratory of Nanodevices, Chinese Academy of Sciences, and so on, which are fully valued by the state, departments, and local governments.
In early March, the “2021 China MEMS Top 10 Enterprises” award ceremony was held at the 2023 China MEMS Manufacturing Conference, and the latest list of domestic MEMS enterprises was announced. The list was selected by the China Semiconductor Industry Association based on quarterly industry statistical reports and statistical data from various local associations.
Goer Microelectronics Co., Ltd
Founded in 2017, Goethe Microelectronics is a subsidiary of Goethe Corporation, a leading enterprise in MEMS sensors in China. In 2019, Goethe Corporation initiated a spin off process, splitting all MEMS related businesses into Goethe Microelectronics. Goethe Microelectronics became the only entity within the Goethe system engaged in MEMS microelectronics related businesses, and inherited Goethe Corporation’s market position in the MEMS field.
Ge Er Microelectronics (Ge Er Shares) has consistently ranked first on the list of “China’s Top 10 MEMS Enterprises”. According to the well-known semiconductor market consulting firm Yole Development’s “MEMS Industry Status Report”, Ge Er Microelectronics (Ge Er Shares) has been among the top 10 MEMS manufacturers in the world since 2019, and is also the only Chinese enterprise in the top ten.
China Resources Micro Integrated Circuit Co., Ltd
Headquartered in Wuxi, it has three 6-inch lines, of which the MEMS production line is the largest MEMS sensor mass production line compatible with the CMOS production line in China. It has the leading MEMS surface and crystalline silicon processing technology in China, which is used to manufacture MEMS sensors such as pressure, silicon microphone, photoelectric, temperature and humidity.
Hangzhou Shilan Microelectronics Co., Ltd
Hangzhou Shilan Micro was established in 1997 and is one of the largest integrated circuit chip design and manufacturing (IDM) enterprises in China.
Since 2010, Shilan Microelectronics has invested a large amount of funds in the development of a series of sensor products such as acceleration sensors, geomagnetic sensors, and pressure sensors. It has achieved mass manufacturing capabilities on the 6-inch and 8-inch chip production lines and established its own MEMS sealing production line, initially paving the way for the IDM development of the series of sensors. It has applied for more than 100 related invention patents.
At present, there is a rich range of micro MEMS sensor products in Shilan, including MEMS accelerometers, three-axis AMR magnetic sensors, six axis inertial sensors, high-performance MEMS microphones, digital three in one sensors, heart rate sensors, high-performance air pressure sensors, etc.
Ruisheng Acoustic Technology (Shenzhen) Co., Ltd
Ruisheng Technology was established in 1993 to provide leading micro proprietary technology solutions for intelligent devices. It has cutting-edge technologies in the fields of acoustics, optics, tactile feedback, precision manufacturing, microelectronics, wireless radio frequency, and antennas, including material research and development, simulation, algorithm, design, automation, and process development.
Hebei Meitai Electronic Technology Co., Ltd
Mattel Technology has its own MEMS sensor chip production line and is an IDM enterprise. It is the largest supplier of MEMS core chips, devices, and system products in China, and a leader in MEMS technology in China.
Meixin Semiconductor Co., Ltd
MEMSIC is a leading global provider of inertial MEMS sensors and solutions, and also the largest MEMS inertial sensor enterprise in China. The “Blue Book of Sensor Development in China” was named one of the first batch of 36 influential sensor enterprises and a representative enterprise of inertial sensors in China. It is also an IDM company.
Shanghai Sirui Technology Co., Ltd
Silicon Rui Technology was established in 2012, focusing on the design, manufacturing, and value-added applications and services of high-quality sensor products, committed to becoming an application oriented multi-sensor platform.
Silicon Rui Technology has fully independent intellectual property rights, including multiple MEMS sensors, magnetic sensor chips, and intelligent modules and systems for automobiles and the Internet of Things. Silicon Rui Technology has been listed as one of the “Top 10 Chinese MEMS” enterprises for many years, and is one of the main manufacturers of magnetic sensors and inertial sensors in China. The “Blue Book of China’s Sensor Development” has been rated as one of the first batch of 36 influential sensor enterprises.
Suzhou Minxin Microelectronics Technology Co., Ltd
Minxin Co., Ltd. was established in 2007 and is a high-tech enterprise specializing in the research and development and design of microelectromechanical system sensors. It has led the construction of China’s MEMS industry chain and is praised as an industry pioneer. In August 2020, it landed on the Science and Technology Innovation Board of the Shanghai Stock Exchange and became the first stock of MEMS chips in China.
MEMS chip IDM companies account for half of the list, with Mattel Technology, Meixin Semiconductor, CR Micro, Silan Micro, and Xirenma all being IDM companies with their own MEMS chip production lines.
It is worth mentioning that multiple MEMS sensor companies are relatively “young”. Except for GoerMicro, which is relatively special, Silicon Rui, Xirenma, and Nano Microelectronics were established in 2012, 2017, and 2013, respectively. In just a few years, they have grown into major companies in the industry, indicating the vigorous development momentum of China’s MEMS industry.