Key facts
- Japanese machine tool makers' order backlogs are at an all-time high.
- Demand is driven by equipment needed for chip and AI hardware production.
- September 2026 orders were ¥223.2 billion, up 160.4% year-on-year.
- Cumulative orders for Jan-Sep 2026 reached ¥1.6693 trillion.
- This cumulative total surpasses the entire 2025 annual order volume.
- The 2018 annual record of ¥1.8158 trillion is within reach with three months remaining in 2026.
Japanese machine tool makers are experiencing unprecedented demand, leading to record-high order backlogs. This surge is primarily fueled by the need for specialized equipment to produce semiconductors and other components crucial for artificial intelligence technologies.
According to data from the Japan Machine Tool Builders' Association (JMTBA), September 2026 saw orders totaling ¥223.2 billion, representing a 160.4% increase year-on-year and marking the highest monthly total for the year. The cumulative orders from January to September 2026 reached ¥1.6693 trillion, already surpassing the entire annual order volume of ¥1.6043 trillion recorded in 2025. This figure is also just ¥146.5 billion shy of the all-time annual record set in 2018.
With three months remaining in 2026, the JMTBA has revised its full-year forecast upwards to ¥2 trillion. The association's August overview indicated that overseas orders are being significantly boosted by growth in North America. In the Jan-Aug period, overseas orders accounted for ¥1.0684 trillion, a 145.1% year-on-year increase, while domestic orders were ¥377.7 billion, up 130.4%. Asia, particularly China, saw sharp growth in orders, while North America also showed strong year-on-year increases. The electrical & precision machinery sector in Japan stood out with a 164.9% year-on-year increase in orders during Jan-Aug.