Japan’s chip distributors are expanding abroad

Mar. 16, 2023 /SemiMedia/ — According to Nikkei Asia, Japanese Semiconductor distributors and EMS factories such as Sun-Wa Technos, Kaga Electronics, and Ryoyo Electro are accelerating overseas expansion in response to the continued shrinking of the local market.

The report pointed out that Sun-Wa Technos will open an office in Bangalore, India next month, and plans to provide parts and assembly for the industrial equipment industry. In the fiscal year ending March 2022, its overseas sales ratio was 38%, and it aims to increase it to between 60% and 70%.

The report also pointed out that Kaga Electronics will expand its electronics manufacturing services. The company invested about $7.5 million last year to build a factory in Penang, Malaysia. The company aims to triple its current sales in Malaysia by 2027. It also built a factory in Turkey and plans to start producing semiconductor substrates for air conditioners and power tools from June this year.

In addition, Ryoyo Electro, a distributor of electronic components for home appliances, is also actively expanding overseas. Its overseas sales for the fiscal year ending January 2023 are up 2.7 times from five years ago.

According to statistics, the Asia-Pacific region including China accounted for 58% of semiconductor sales in 1922, followed by the United States at 25%, Europe at 9%, and Japan at 8%. Previously, Japan’s market share in 1900 was 23%.