Chip-making equipment and semiconductors rose 4.3% and 5.5%, respectively. These two account for about 10% of total exports. This growth is likely due to tariff exemptions and substantial AI investments. Similar trends are seen in Taiwan, South Korea, and Malaysia.
Despite US onshoring efforts in semiconductors, it seems investment inflows haven’t increased. Japan, a leader in device technology, is vital for the health of the global chip-making industry. However, exports to the US declined, while shipments to the rest of the world grew. Semiconductor exports showed a similar pattern: weak exports to the US likely result from supply chains being concentrated in Asia, rather than tariffs.
Also, Japanese exports to Taiwan decreased significantly in the second quarter, primarily because most Japanese chips are designed for general use rather than high-end applications. High-end chips are typically assembled and manufactured in Taiwan. Therefore, export trends may vary by product segment compared to other chip manufacturers.
We believe that tariff exemptions have increased global chip exports in 1H25 as companies seek to avoid possible sectoral tariffs. Today, the US announced 20% tariffs for Taiwan. We don’t know the specifics on chips yet. But higher levies on Taiwan will have a broader negative impact on semiconductors globally in 2H25.
AloJapan.com