SemiconductorsBRIEF

Taiwan and South Korea Overtake Japan in Exports for the First Time as AI Chip Demand Widens the Gap

林紀旭 James LinEditor-in-Chief
Published · Updated
According to TechNews and Anue, South Korea's H1 2026 exports reached $496.3 billion and Taiwan's $416.6 billion, both surpassing Japan's $384.4 billion for the first time, driven by IC exports growing near 50% versus Japan's roughly 10%.

How Large Was the First-Time Export Overtake?

For the first half of 2026, South Korea's exports reached $496.3 billion and Taiwan's reached $416.6 billion, both exceeding Japan's $384.4 billion — the first time both countries have simultaneously overtaken Japan, according to TechNews. Anue (鉅亨網) reported the identical figures — South Korea at $496.3 billion, Taiwan at $416.6 billion, Japan at $384.4 billion — and characterized the shift as "a historic realignment of East Asia's export map."

EconomyH1 2026 Total Exports
South Korea$496.3 billion
Taiwan$416.6 billion
Japan$384.4 billion

Why Did Growth Rates Diverge So Sharply — and What Threw Off Japan's Trade Balance?

Compared with the same period a year earlier, Japan's exports rose by close to 10%, while South Korea's and Taiwan's both surged by nearly 50%, TechNews reported — a growth gap it called "significantly higher" for the two economies. Anue described the same divergence — Japan up nearly 10% versus Taiwan and South Korea both up nearly 50% — as marking a historic shift in the region's export order.

On the import side, Anue reported that Japan's imports jumped 25.4% year over year in June 2026, the fastest pace since November 2022, with oil imports alone spiking 59.3%. Anue attributed the surge to Middle East tensions pushing up oil prices, noting that Japan — which depends on imports for 87% of its energy — was hit hard as a result.

How Semiconductor Exports Powered Taiwan and South Korea's Surge

Integrated-circuit (IC) exports sit at the center of the divergence. TechNews reported that South Korea's IC exports totaled $149.0 billion in H1 2026 and Taiwan's totaled $133.2 billion — each representing about 30% of the country's total exports. South Korea's H1 2026 IC exports alone already exceeded its full-year 2025 IC export total, per TechNews. Japan's IC exports, by contrast, came to just $21.2 billion, or about 5% of its total exports.

Anue's figures matched: South Korea's semiconductor exports at $149.0 billion (about 30% of total exports), Taiwan's at $133.2 billion, and Japan's at $21.2 billion (5% of total exports), with Anue likewise confirming that South Korea's first-half IC exports alone surpassed its entire 2025 total.

EconomyH1 2026 IC ExportsShare of Total Exports
South Korea$149.0 billion~30%
Taiwan$133.2 billion~30%
Japan$21.2 billion~5%

Why Japan's Equipment Lead Can't Match the Chip Export Pace

Japan still leads in one segment of the semiconductor supply chain: manufacturing equipment. TechNews reported Japan's semiconductor manufacturing equipment exports at $15.0 billion in H1 2026, ahead of South Korea's $5.2 billion and Taiwan's $3.5 billion. Anue reported the same figures, adding that while advanced chips are riding the wave of AI capital spending, equipment and materials exporters "benefit only indirectly."

Maruyama Kenta of Mitsubishi UFJ Research and Consulting (MURC), cited by TechNews, said: "Even as semiconductor exports from various countries and regions keep rising, exports of related components, materials, and manufacturing equipment can't expand at the same pace." Anue separately cited Maruyama, identified as a deputy senior researcher at MURC's research department, making the same point — that exports of components and equipment cannot replicate the high growth rates of finished chips.

EconomyH1 2026 Semiconductor Equipment Exports
Japan$15.0 billion
South Korea$5.2 billion
Taiwan$3.5 billion

Why Has Japan's Export Ranking Been Sliding for Decades?

Japan's slide is not a one-year event. TechNews, citing JETRO data, reported that Japan's export total fell to 6th place globally in 2025. TechNews traced the longer arc: from the 1970s through the 1990s, Japan ranked 3rd worldwide, behind only the United States and Germany; in the 2000s, it slipped to 4th as China rose; more recently, it was overtaken by the Netherlands and Hong Kong, both functioning as international trade hubs.

Anue reported the same trajectory in nearly identical terms — Japan held the world's 3rd-largest export position through the 1970s-1990s, was overtaken by China in the 21st century, then pushed further down by the Netherlands and Hong Kong, falling to 6th place last year — describing the ranking decline as "not a coincidence of the AI wave."

What This Means

The numbers reported by TechNews and Anue point to the same structural story from two angles. On the export side, Taiwan's and South Korea's roughly 30%-of-total IC exposure — versus Japan's roughly 5% — lines up with their near-50% export growth against Japan's near-10%, while Japan's $15.0 billion equipment lead over South Korea's $5.2 billion and Taiwan's $3.5 billion has not translated into comparable export growth, consistent with Maruyama's point that equipment and components can't scale as fast as finished chips. On the import side, Japan's 25.4% June import jump and 59.3% oil-import spike, both tied to energy dependence, add pressure from the other direction. Together with the 6th-place 2025 ranking that caps a decline from 3rd place in the 1970s-1990s through 4th place in the 2000s, the H1 2026 crossover marks a continuation of a ranking slide already decades in the making rather than an isolated shift.

📊 Evidence

FAQ

What is Japan's current global export ranking?

According to TechNews, citing JETRO data, Japan's export total fell to 6th place globally in 2025, down from 3rd place through the 1970s-1990s and 4th place in the 2000s.

What share of Taiwan's and South Korea's total exports comes from integrated circuits?

TechNews and Anue both reported that IC exports account for about 30% of total exports in both South Korea and Taiwan, versus about 5% in Japan.

What caused Japan's import surge in June 2026?

Anue reported that Japan's imports rose 25.4% year over year in June 2026, the fastest pace since November 2022, with oil imports up 59.3% amid Middle East tensions pushing up oil prices — a particular strain given Japan's 87% reliance on imported energy.

📎 Sources

  1. technews.tw
  2. news.cnyes.com
林紀旭 James LinEditor-in-Chief

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