TOKYO, July 21 (Reuters) - Japan's Nikkei share average ended lower on Friday, as the tumble in chip-related shares accelerated tracking a sell-off in U.S. peers.

Domestic semiconductor industry giants Tokyo Electron and Advantest plunged 5.6% and 5.8%, respectively, to shave almost 200 index points from the Nikkei between them.

The Nikkei dropped 0.57% - or a net 186 points - to 32,304.25.

By contrast, the broader Topix, which has a lower concentration of technology shares, eked out a 0.06% gain.

The Mothers index of mainly tech startups tumbled 1.5%.

Chip component maker Screen Holdings and chip maker Renesas Electronics tumbled along with their bigger peers, losing 4.9% and 2.5%, respectively.

That followed a 3.6% drop in the Philadelphia SE Semiconductor Index overnight, its worst day this year.

However, Daiwa Securities strategist Kenji Abe said he continues to prefer growth- over value stocks over the medium term.

"Inflation seems to be peaking out in the U.S. and the Federal Reserve is very close to the end of the hiking cycle, so I expect the U.S. long-term rate will decline going forward, which is positive for growth stocks," he said.

Abe expects the Nikkei to keep to a narrow range next week, when the Fed and the Bank of Japan both set policy, and Japan's earnings season moves into high gear.

Towards the year-end though, the Nikkei could rise to 34,000, he predicted.

Friday's big losses for chip stocks overshadowed a surge in motor maker Nidec's shares, which gained 10.4% after positive after-the-bell earnings.

Drugmakers also gained, with Daiichi Sankyo climbing 1.69% after its blood cancer treatment got a nod from the U.S. FDA. Takeda Pharmaceutical jumped 1.76%, and Chugai Pharmaceutical added 1.39%.

Energy ended as the Nikkei's best performing sector, rising 1.4%, boosted by an advance in crude oil. Inpex rallied 2.38%. (Reporting by Kevin Buckland; Editing by Rashmi Aich)