Core Viewpoint - The semiconductor industry is experiencing a shift in focus from power semiconductors to emerging technologies like AI chips and HBM, leading to a changing competitive landscape where Japanese manufacturers are losing their previous advantages [1][2][29]. Group 1: Current Trends in Power Semiconductors - The demand for AI chips is surging due to the rise of large models, while HBM is gaining prominence in data storage due to its high bandwidth characteristics [1]. - Japanese manufacturers, once leaders in power semiconductors, are facing delays in capacity expansion and losing market share to domestic competitors in China [1][2][29]. Group 2: Japanese Manufacturers' Challenges - Japanese companies like Mitsubishi Electric, Fuji Electric, and Renesas are struggling with declining market shares and financial performance, with some reporting significant losses [9][22][25]. - The competitive landscape is shifting, with Japanese firms now holding only three positions in the global top ten power semiconductor manufacturers, all with market shares below 5% [7][12][25]. Group 3: Financial Performance of Key Players - ROHM reported a net loss of 50 billion yen for the fiscal year ending March 2025, marking its first annual loss in 12 years, while also facing a significant drop in operating profit [9][22]. - Renesas Electronics announced a record net loss of 175.3 billion yen in the first half of 2025 and has decided to abandon its plans to enter the silicon carbide (SiC) market [15][18][29]. Group 4: Market Dynamics and Competition - The rise of Chinese semiconductor companies is significantly impacting Japanese firms, with Chinese manufacturers rapidly gaining market share and driving down prices [29][30]. - The global electric vehicle market's slower-than-expected growth is affecting demand for power semiconductors, further complicating the situation for Japanese manufacturers [29][32]. Group 5: Strategic Responses and Future Outlook - Japanese companies are attempting to adapt by forming partnerships and seeking new market opportunities, but these efforts are often hindered by internal competition and lack of collaboration [25][35]. - The Japanese government is pushing for increased investment in the semiconductor sector, aiming to boost the market share of domestic companies, but challenges remain in execution and coordination [35].

Core Viewpoint - The semiconductor industry is experiencing a shift in focus from power semiconductors to emerging technologies like AI chips and HBM, leading to a decline in the prominence of power semiconductor manufacturers, particularly in Japan [4][5]. Group 1: Current Landscape of Power Semiconductors - The demand for power semiconductors is expected to grow due to the rapid development of industries such as electric vehicles, photovoltaics, and wind power, alongside the adoption of wide-bandgap semiconductor materials [7]. - Japanese manufacturers, once dominant in the power semiconductor market, are facing challenges as their expansion plans are delayed, resulting in a loss of market share [10][11]. - In 2024, only three Japanese companies remain in the global top ten power semiconductor manufacturers, with each holding less than 5% market share [11][12]. Group 2: Challenges Faced by Japanese Manufacturers - Rohm has reported a net loss of 50 billion yen for the fiscal year ending March 2025, marking its first annual loss in 12 years, and has had to scale back its investment plans significantly [15][16]. - Toshiba's collaboration with Rohm has stalled, and its investments in power semiconductors have not yielded expected returns, leading to a slowdown in its growth [19][20]. - Renesas Electronics has announced a net loss of 175.3 billion yen in the first half of 2025 and has decided to abandon its plans to enter the silicon carbide (SiC) market due to competitive pressures and market conditions [21][22][24]. Group 3: Reasons for the Decline - Internally, Japanese companies struggle with a lack of trust and collaboration, which hampers their ability to integrate and innovate effectively [32][33]. - Externally, the rise of Chinese semiconductor companies has intensified competition, with these firms rapidly gaining market share and driving down prices, putting pressure on Japanese manufacturers [34][36]. - The global electric vehicle market has not developed as anticipated, leading to overcapacity and insufficient returns on investments made by Japanese firms [34]. Group 4: The Rise of Chinese Semiconductor Companies - Chinese companies are rapidly establishing themselves in the power semiconductor market, leveraging low energy costs and a large domestic market to achieve scale and reduce costs [36][38]. - Companies like Tianjiao and Tianyue have emerged as leaders in the silicon carbide substrate market, significantly impacting the competitive landscape [36][39]. - The technological gap between Japanese and Chinese firms is narrowing, with Chinese companies quickly catching up in both silicon and silicon carbide technologies [40]. Group 5: Future Outlook - The Japanese power semiconductor industry must undergo significant restructuring and collaboration to regain competitiveness in the global market [42][43]. - There is a need for Japanese companies to diversify their product offerings beyond electric vehicles and focus on emerging markets such as industrial automation and energy [43].

Core Viewpoint - The semiconductor industry is experiencing a shift in focus from power semiconductors to emerging technologies like AI chips and HBM, leading to a decline in the competitive position of Japanese power semiconductor manufacturers [2][26]. Group 1: Current Landscape of Power Semiconductors - The demand for AI chips is surging due to the rise of large models, while HBM is gaining prominence in data storage [2]. - Japanese manufacturers, once leaders in power semiconductors, are facing delays in capacity expansion and losing market share to domestic competitors [2][6]. - The global power semiconductor market is witnessing a shift, with Japanese firms' market share dropping significantly, as they now hold only three positions in the top ten rankings [6][7]. Group 2: Financial Performance of Japanese Firms - Rohm reported a net loss of 50 billion yen for the fiscal year ending March 2025, marking its first annual loss in 12 years [9]. - Mitsubishi Electric's expansion plans for a new power semiconductor factory have been postponed, reflecting a broader trend of reduced investment in the sector [19][20]. - Renesas Electronics announced a record net loss of 175.3 billion yen in the first half of 2025 and has abandoned its plans to enter the silicon carbide (SiC) market [15][16]. Group 3: Competitive Challenges - Japanese firms are struggling against fierce competition from emerging Chinese companies, which are rapidly gaining market share and driving down prices [27][30]. - The lack of collaboration and trust among Japanese semiconductor companies is hindering their ability to respond effectively to market changes [25][33]. - The Japanese power semiconductor industry is facing a critical juncture, with the need for strategic adjustments to regain competitiveness [32][33]. Group 4: Future Outlook - The Japanese government is attempting to support the power semiconductor sector through subsidies and strategic initiatives, but the effectiveness of these measures remains uncertain [6][33]. - Companies must shift their focus from solely electric vehicle applications to other growth areas such as industrial automation and energy to diversify their product offerings [33]. - The competitive landscape is evolving, and without significant changes in strategy and collaboration, Japanese firms may continue to struggle in the global market [32][33].