NIPPON EXPRESS: INTEGRATING THE CIRCUITOUS, SOLVING SEMICONDUCTOR LOGISTICS Vol.2

February 4,2021

― Handle with care: challenges of semiconductor logistics

But the annual production of more than a trillion semiconductors requires logistics solutions as integrated and precise as the microchip circuits themselves. Raw materials and manufacturing tools used for semiconductors need to crisscross continents. Parts and half-finished chips must be shipped from factory to factory until final assembly, going through numerous stages of unpacking, assembly, and repacking.
Throughout, extreme care must be taken in handling the packages. Semiconductor wafers are super-sensitive to temperature, humidity, shock and vibrations, static electricity, and dust. Moreover, the product is highly valuable. A single 10kg box of wafers may be worth a million USD – and thus prone to theft and counterfeiting.

― Building resilience into automotive logistics

Revenues and volumes are company reported or Armstrong & Associates, Inc. estimates. Revenues have been converted to US$ using the average annual exchange rate in order to make non-currency related growth comparisons. Freight forwarders are ranked using a combined overall average based on their individual rankings for gross revenue, ocean TEUs and air metric tons.

Includes LCL shipments.

(updated July 23, 2020)
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Few logistic companies have the capability to provide reliable, safe and secure handling over an integrated global network to service the world’s top global chip makers. Nippon Express, Asia’s largest and among the largest global transporters in the world, is one of them.
In 2013, the Japan-based forwarder invested in NEC Logistics from NEC, Japan’s long-time semiconductor leader. Since then, Nippon Express has built up its expertise and assets to better service the rapidly changing industry. Recent years has seen its global presence expand, with leading US chip makers now counting among its customers. It is now eyeing to establish a global one-stop network for the industry.
“Our goal is to provide semiconductor logistics solutions which connect various players and layers in the supply chain, thereby improving quality, safety, and security,” says Ryuji Goya, Executive Officer for Nippon Express.
“We will achieve this by combining Nippon Express Group’s global assets and multiple transport modes with Nittsu NEC Logistics’ expertise. This includes staff skilled in all stages of the semiconductor supply chain and high-quality warehouse operations.”
The company lists semiconductor logistics as one of its five key growth areas and aims to double sales in the sector by 2023.
“As we aim to generate over half of our group sales overseas, engaging with the high-growth, global semiconductor industry is vital,” says Mr. Goya.
The plan is to first target and perfect the production phases of Japanese semiconductor makers domestically, then later adapt that to Asian markets. At the same time, Nippon Express will focus on air forwarding for semiconductor manufacturing equipment, materials, half-finished products, and maintenance items to service overseas markets, particularly the growing US and European ones.
“We believe we can differentiate ourselves from other global integrators. First through our unique knowledge in semiconductor logistics gained from years of servicing Japanese companies. And second from our capabilities to deliver across the supply chain,” says Mr. Goya, “We have particular strengths in handling and storing semiconductor materials, manufacturing equipment, as well as storing and delivering maintenance parts.”