Following In US Footsteps, Japan Restricts Export Of Chip Making Equipment To China

JAKARTA - Japan has joined the United States (US) and the Netherlands to limit chip manufacturing equipment abroad, especially in China.

Japan's Minister of Economy, Trade and Industry, Yasutoshi Nishimura said the regulation would take effect in July, tightening exports of advanced semiconductor manufacturing equipment.

So that Chinese companies have at least three months to get the tools they might need. This decision is expected to make it difficult for Japanese high-tech companies to export these items to China.

Like the founding giant in China, SMIC and memory leader NAND YMTC will not be able to buy the equipment needed to make chips.

A total of 23 types of advanced equipment subject to Japanese export controls, including all immersion lithography machines, etsa equipment, tools used for chemical wafer coarsening (post-CMP cleaning), and extreme ultraviolet (EUV) mask testers. These devices were made by ten companies, including Lasertec, Nikon, Screen Holdings, and Tokyo Electronic.

As this rule goes into effect, Nishimura explains, stricter procedures are needed to export to about 160 destinations such as China, while 42 regions, including the US, South Korea, and Taiwan, are recognized by Japan to have adequate export controls.

For all exports to countries that are not formally recognized, they will need approval from the ministry. These new measures, Nishimura said, aims to prevent the transfer of equipment to military use.

Japan's decision follows in what was taken in October 2022 by the US, in which it has banned Chinese companies from buying advanced chips and unlicensed chipmaker equipment.

The regulation also limits the ability of the citizen of Uncle Sam to provide support for chip development or production in certain facilities in China.

Earlier this month, the Netherlands also launched new restrictions on sales of semiconductor technology abroad, citing the need to protect national security, as quoted by CNN International and Tom's Hardware, Monday, April 3.

In response to this, a spokesman for China's Ministry of Foreign Affairs, Mao Ning, stated that Japan's move was deliberate and destabilized the global industry. He claims it would harm the country itself.

"Arming economic, trade and technology issues to intentionally disrupt the global industrial chain will only harm others and harm themselves," said Ning.