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Japan's chip exports surged 53.8% in June, but surge in oil imports leads to continued trade deficit

2026-07-22·newswire-us-stock-074426
Japan's chip exports surged 53.8% in June, but surge in oil imports leads to continued trade deficit.

On Wednesday, the latest data released by Japan's Ministry of Finance showed that thanks to semiconductor equipment exports and the weakening of the yen, Japan's export growth in June reached the fastest level since November 2022, with a year-on-year increase of 19.3%, which not only exceeded the 18.6% predicted by economists, but was also higher than the 16.8% in May.

However, at the same time, against the backdrop of ongoing conflicts in the Middle East and rising international oil prices, Japan's oil import costs continue to increase, causing Japan's trade deficit to continue to expand.

Japan's chip exports soar Broken down by country, Japan's exports to Asian countries increased by 22.7% year-on-year, of which exports to mainland China, Japan's largest trading partner, increased by 17.6% year-on-year.

In addition, Japan's exports to Taiwan, China, increased by 46.4% year-on-year, while exports to the United States increased by 13% year-on-year. = Japan's exports mainly benefit from the sharp surge in semiconductor exports amid the AI boom. In June this year, Japan’s semiconductor exports surged 53.8% year-on-year.

Driven by the AI craze, the share prices of local Japanese technology companies including Tokyo Electronics, Renesas Electronics and Advantest rose by 50% to 93% in the first half of this year. In addition to large exports of semiconductors, the weakening of the yen also boosted Japan's export performance.

Currently, the yen has fallen to multi-decade lows against the U.S. dollar, with the current exchange rate floating around 163 yen per U.S. dollar. Currently, exports remain one of Japan's main economic drivers. In the first quarter of this year, Japan's GDP grew by 0.5% month-on-month and 1.8% year-on-year (on an annualized basis).

The Bank of Japan noted at its June monetary policy meeting that the global economy is recovering due to growing demand for artificial intelligence (AI).

As a result, for Japan, "the deterioration in terms of trade has eased and concerns about an economic slowdown have subsided." Increase in oil imports leads to trade deficit While exports surged, Japan's import volume in June increased by 25.4% year-on-year, also hitting the highest growth rate since November 2022, exceeding market expectations of 21%.

Due to the rise in oil prices caused by the Iran war, Japan faces higher oil costs: Japan's oil imports increased significantly in June, up 59.3% year-on-year. According to the International Energy Agency, more than 87% of Japan's domestic energy needs are met by imports.

From a regional perspective, although Japan has reduced its oil imports from the Middle East, its oil imports from the United States have increased significantly. Data show that in June this year, Japan’s imports of crude oil and petroleum products from the United States surged by 355.4% and 210% respectively year-on-year.

Affected by the surge in oil imports, Japan's trade deficit was 406.9 billion yen in June. In the first half of this year, Japan's trade deficit accumulated to 1.01 trillion yen, marking the 10th consecutive half-year trade deficit.

#Stocks #AI #Semiconductors #Oil #Trade

Full text

Japan's chip exports surged 53.8% in June, but surge in oil imports leads to continued trade deficit

[Japan’s chip exports surged 53.8% in June but soaring oil imports led to continued trade deficit] On Wednesday, the latest data released by Japan’s Ministry of Finance showed that thanks to semiconductor equipment exports and the weakening of the yen, Japan’s export growth in June reached the fastest level since November 2022, with a year-on-year growth of 19.3%, which not only exceeded the 18.6% predicted by economists, but was also higher than the 16.8% in May. However, at the same time, against the backdrop of ongoing conflicts in the Middle East and rising international oil prices, Japan's oil import costs continue to increase, causing Japan's trade deficit to continue to expand.

On Wednesday, the latest data released by Japan's Ministry of Finance showed that thanks to semiconductor equipment exports and the weakening of the yen, Japan's export growth in June reached the fastest level since November 2022, with a year-on-year increase of 19.3%, which not only exceeded the 18.6% predicted by economists, but was also higher than the 16.8% in May. However, at the same time, against the backdrop of ongoing conflicts in the Middle East and rising international oil prices, Japan's oil import costs continue to increase, causing Japan's trade deficit to continue to expand. Japan's chip exports soar Broken down by country, Japan's exports to Asian countries increased by 22.7% year-on-year, of which exports to mainland China, Japan's largest trading partner, increased by 17.6% year-on-year. In addition, Japan's exports to Taiwan, China, increased by 46.4% year-on-year, while exports to the United States increased by 13% year-on-year. = Japan's exports mainly benefit from the sharp surge in semiconductor exports amid the AI boom. In June this year, Japan’s semiconductor exports surged 53.8% year-on-year. Driven by the AI craze, the share prices of local Japanese technology companies including Tokyo Electronics, Renesas Electronics and Advantest rose by 50% to 93% in the first half of this year. In addition to large exports of semiconductors, the weakening of the yen also boosted Japan's export performance. Currently, the yen has fallen to multi-decade lows against the U.S. dollar, with the current exchange rate floating around 163 yen per U.S. dollar. Currently, exports remain one of Japan's main economic drivers. In the first quarter of this year, Japan's GDP grew by 0.5% month-on-month and 1.8% year-on-year (on an annualized basis). The Bank of Japan noted at its June monetary policy meeting that the global economy is recovering due to growing demand for artificial intelligence (AI). As a result, for Japan, "the deterioration in terms of trade has eased and concerns about an economic slowdown have subsided." Increase in oil imports leads to trade deficit While exports surged, Japan's import volume in June increased by 25.4% year-on-year, also hitting the highest growth rate since November 2022, exceeding market expectations of 21%. Due to the rise in oil prices caused by the Iran war, Japan faces higher oil costs: Japan's oil imports increased significantly in June, up 59.3% year-on-year. According to the International Energy Agency, more than 87% of Japan's domestic energy needs are met by imports. From a regional perspective, although Japan has reduced its oil imports from the Middle East, its oil imports from the United States have increased significantly. Data show that in June this year, Japan’s imports of crude oil and petroleum products from the United States surged by 355.4% and 210% respectively year-on-year. Affected by the surge in oil imports, Japan's trade deficit was 406.9 billion yen in June. In the first half of this year, Japan's trade deficit accumulated to 1.01 trillion yen, marking the 10th consecutive half-year trade deficit.

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