Japan led exports of machines for semiconductor production worldwide in 2021, according to data from that nation’s Ministry of Finance.
The full concept of those external veins is machines and apparatus for the manufacture of semiconductor devices or electronic integrated circuits.
After totaling $12.02 billion in 2020, those exports rose at an annual rate of 53% in 2021, to $18.388 billion, and broke records.
Where did these sales go? To China they were shipped for a customs value of $6.694 billion, followed by Taiwan ($4.124 billion), South Korea ($3.896 billion), the United States ($1.978 billion) and Singapore ($696 million).
On March 11, 2011, just as the Japanese economy was in a transition from a state of stagnation to recovery, the Great East Japan Earthquake (the “Earthquake”) struck Japan.
As a result, the Japanese economy recorded negative growth in the first and second quarters of 2011.
Unlike the cases of the Great Hanshin-Awaji Earthquake in 1995 or Hurricane Katrina in 2005, personal consumption declined nationwide, and consumer sentiment deteriorated sharply after the Earthquake.
The Earthquake had a severe impact on production in Japan through the closure of damaged factories, disruption of supply chains and restrictions on energy supply.
In particular, the earthquake affected Japan’s automotive industry, which relies on the Tohoku region for the supply of key parts, such as semiconductors and other electronic components.
Supply constraints and slower growth in corporate profits following the earthquake also put downward pressure on capital investment activities.
Japan surpassed $10 billion in its semiconductor manufacturing machine exports for the first time in 2017.
Major Japanese automakers announced production cuts throughout the second half of 2021 due to a shortage of auto components.
Merchandise exports (14% of GDP) have been a key driver of Japan’s post-pandemic recovery, and could come under pressure in 2022 due to sustained supply disruptions and China’s economic slowdown.