The Nikkei average slipped 0.16 percent to 40,063.79 while the broader Topix index settled 0.27 percent lower at 2,860.83.
Renesas Electronics surged 3.5 percent, Tokyo Electron rallied 2.3 percent and Advantest added 1.6 percent while Screen Holdings fell 1.2 percent.
Disco, a maker of chip manufacturing devices, slumped 4.6 percent after posting disappointing financial results.
Earlier in the day, data showed Japanese consumer price inflation grew less than expected in June, raising doubts over whether the Bank of Japan will hike interest rates soon.
In another development, Japan's government cut this year's growth forecast as consumption took a hit from rising import costs due to a weak yen.
Japan's core inflation rose for the second straight month in June, keeping alive hopes of another interest rate hike.
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Core inflation that excludes fresh food edged up to 2.6 percent in June from 2.5 percent in May. However, this was slightly below economists' forecast of 2.7 percent, the Ministry of Internal Affairs and Communications said.
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