Agent’s Guide to the Semiconductor Industry｜Even if you have no experience, you can understand the types of semiconductor companies and employment trends.

Semiconductor Basics

What is a semiconductor?

A semiconductor has the characteristics of both a conductor (a substance that conducts electricity well) and aninsulator (a substance that does not conduct electricity), materials that control the flow of electrons. A semiconductor is a substance or material that controls the flow of electrons. Because semiconductors are used to store and express information in electronic devices by controlling the flow of electrons, they are used in a wide variety of electronic devices that require information processing, such as PCs and smartphones.

In recent years, demand for semiconductors that combine higher information processing capacity with smaller size has soared in line with the development of generated AI. To meet this demand, semiconductor companies around the world are working hard to develop new semiconductors. However, only a limited number of companies are able to provide the necessary environment for research and development, and the market is dominated by the world’s leading super-major semiconductor companies.

In this environment, governments are making a concerted effort to support the semiconductor industry on a national level, and this is due to the significant impact that semiconductors have on domestic industries. Semiconductors are used in all kinds of electronic devices, and the presence of higher-performance semiconductors is key to further improving their functions. While it is possible to rely on imports from developed semiconductor countries, relying on imports from other countries is risky, as they are often subject to restrictions as a result of changes in international relations, as seen in the U.S.-China trade friction. Therefore, various countries are rushing to establish domestic development and production systems.

What products are semiconductors used in?

Semiconductors are used in a wide variety of applications, from everyday electronic devices to precision industrial machinery and cutting-edge AI technology, to name just a few.

Among them, automobiles are equipped with a large number of semiconductors with all kinds of functions and are called ” running semiconductors.

In addition, more and more high-performance semiconductors are expected to be used in the future as vehicle performance improves, such as more advanced automated driving, and as electric vehicles (EVs) and new types of vehicles (micro-mobility, “flying cars”, etc.) become more popular. In the future, more and more high-performance semiconductors are expected to be used.

Below is a summary of typical automotive semiconductor categories, their functions, and future technology trends.

• Major Applications of Semiconductors in Automotive

Overview of the Semiconductor Industry and Ranking of Leading Companies

Types of semiconductor-related companies

◇Basic Structure: Semiconductor manufacturers and the ecosystem surrounding them

IDM (Integrated Device Manufacturer)
As a semiconductor manufacturer, it designs, manufactures, and sells semiconductors in-house
Semiconductor equipment manufacturer
Manufactures equipment used by semiconductor manufacturers
Semiconductor trading company
Wholesales semiconductors manufactured by semiconductor manufacturers to manufacturers of semiconductor-using equipment

in addition

• Semiconductor Material Manufacturer▸Semiconductor manufacturer provides materials used in semiconductor manufacturing
• EDA Vendor▸Semiconductor Design Tool Provides IDM
• IP Vendor ▸ IP (Intellectual Property) for semiconductor design

and other companies that support semiconductor manufacturing.

Contract manufacturing and outsourcing companies

Fabless
Develops semiconductors and outsources manufacturing to foundries
Examples: NVIDIA, Apple, Tesla
Foundry
Only undertakes front-end semiconductor manufacturing
Example: TSMC
OSAT
(OSAT, Outsourced Semiconductor Assembly and Test) and Test)
OSAT only undertakes back-end processes in the semiconductor manufacturing process.

The Development of Foundries

Foundries are contracted to perform front-end processes, which are the most common processes in semiconductor manufacturing. Why have foundries become so useful and expanded their scale in the semiconductor industry? This is due to the fact that the burden of conducting integrated in-house development and manufacturing has increased as capital investment in semiconductor factories has expanded significantly.

By utilizing the foundry’s vast manufacturing base, companies can actively manufacture products while avoiding financial burdens and risks, such as producing quantities in excess of their in-house manufacturing capacity or using production as a buffer in anticipation of changes in the supply-demand balance. Foundry facilities can also be used to develop and commercialize advanced technology products.

The benefits of foundries are not limited to the reduction of financial burdens. For example, TSMC, the largest foundry, has contributed to the development of the semiconductor industry in various countries by having foundries all over the world, and TSMC has also been able to avoid the intervention of international politics by having foundries all over the world, while maintaining stable semiconductor manufacturing. In this way, foundries now have an enormous presence in the semiconductor industry and are responsible for the development of the overall semiconductor industry.

Semiconductor Related Companies Sales Ranking by Type and Region

Semiconductor manufacturers (IDM, fabless, foundries)

<World>
1. Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC)
(Taiwan)
2. NVIDIA Corporation
(USA)
3. Intel Corporation
(USA)
4. SK Square Co., Ltd.
(Korea)
5. SK hynix Inc.
(Korea)

<Japan>
1. Renesas Electronics
2. Kioxia Holdings
3. Toshiba Device & Storage
4. ROHM
5. Sanken Electric

Semiconductor equipment manufacturer

<World>
1. ASML Holding NV
(Netherlands)
2. Applied Materials, Inc.
(USA)
3. Lam Research Corporation
(Japan)
4. Tokyo Electron
(Japan)
5. KLA Corporation
(USA)

<Japan>
1. Tokyo Electron
2. Screen Holdings
3. Advantest
4. DISCO
5. ULVAC

◇Semiconductor trading company

<World>
1. Arrow Electronics, Inc.
(USA)
2. Avnet, Inc.
(USA)
3. WPG Holding Co Ltd
(Taiwan)
4. Macnica Holdings
(Japan)
5. Supreme Electronics Co, Ltd
(Taiwan)

<Japan>
1. Macnica Holdings
2. Kaga Electronics
3. Lester
4. Tomen Devices
5. Sikes

Reference: Based on data from Nikkei Value Search

Recruitment Trends in the Semiconductor Industry

Actively recruiting for a position in a semiconductor related company

◇Ratio of jobs in the semiconductor industry by job type

Positions of particular strength in recruitment

• Semiconductor manufacturer: FAE, circuit design engineer, process engineer, production control
• Semiconductor Equipment Manufacturer: Process Engineer, Process Integration, Customer Engineer
• Semiconductor trading company: Domestic sales, overseas sales, FAE

Job areas for semiconductor-related companies

Because some semiconductor companies have vast factories, the regions in which they locate their workplaces are limited. Below are the prefectures with the most openings for semiconductor companies.

Hokkaido, Iwate (Kitakami), Mie (Yokkaichi), Hiroshima, Kumamoto, Kyoto, Aichi, Tokyo

How to move to a semiconductor company

Many companies in the fast-growing semiconductor industry are actively recruiting, and there are many companies that have open positions in a variety of sectors.
However, the industry’s high growth expectations and aggressive hiring trends are attracting attention even within the human resources industry.
I want to be in the semiconductor industry!” is a good enough step toward your ideal career, but there is more to it than that if you are aiming to obtain a job offer,

• Get a basic knowledge of semiconductors in your head and broaden your interest in the products and the industry.
• Fully understand the different characteristics of each company and its products, and solidify your reasons for applying when applying.
• Catch up on the latest developments in the semiconductor industry, which is growing at a rapid pace, to prepare for interviews.

and you must be prepared to make a difference as a candidate.

Turnpoint Consulting has consultants who specialize in the semiconductor field and can provide more reassuring support by leveraging their expertise and connections with companies.