Japan Said to Restrict Chipmaking Equipment Exports: Details

Japan stated on Friday it’s going to limit exports of 23 sorts of semiconductor manufacturing gear, aligning its expertise commerce controls with a US push to curb China’s means to make superior chips.

Japan, dwelling to main international chip gear makers reminiscent of Nikon and Tokyo Electron, didn’t specify China because the goal of the measures, saying gear makers would wish to hunt export permission for all areas.

“We’re fulfilling our duty as a technological nation to contribute to worldwide peace and stability,” Minister for Economic system, Commerce and Business Yasutoshi Nishimura instructed a information convention.

Japan needs to cease superior expertise getting used for navy functions and doesn’t have one particular nation in thoughts with the measures, he stated.

However Japan’s choice is seen as a serious diplomatic win for US President Joe Biden’s administration, which in October introduced sweeping restrictions on China’s entry to US chipmaking tech to gradual its technological and navy advances.

With out the cooperation of trade heavyweights Japan and the Netherlands, the US measures can be ineffective and its firms would face a aggressive drawback.

Japan and the Netherlands in January agreed to hitch the U.S. in proscribing gear exports to China that might be used to fabricate sub-14 nanometre chips, however didn’t announce the pact to keep away from frightening China, sources stated earlier.

Japan has by no means publicly acknowledged any settlement.

A nanometre, or one-billionth of a metre, refers to a particular semiconductor trade expertise, with fewer nanometres typically which means the chip is extra superior.

Within the Netherlands, the federal government stated in a letter to parliament this month it deliberate to limit chipmaking gear exports. Dutch main ASML Holding NV dominates the marketplace for lithography methods used to create chips’ minute circuitry.

China, which has accused the US of being a “tech hegemony” due to its export restrictions, urged the Netherlands “to not comply with export management measure by sure international locations”.

Restricted Impression?

Japan stated it will impose export controls on six classes of kit utilized in chip manufacturing, together with cleansing, deposition, lithography and etching.

The restrictions, efficient from July, are prone to have an effect on gear manufactured by at the least a dozen Japanese firms, reminiscent of Nikon, Tokyo Electron, Display Holdings, and Advantest.

Takamoto Suzuki, head of financial analysis for Marubeni in China, stated the measures can be a blow to Japanese gear makers given the absence of a powerful home chip market.

“It can undermine the market growth of Japanese firms and definitely cut back their competitiveness from a regulatory facet,” he stated.

When requested in regards to the affect, minister Nishimura stated, with out elaborating, that he anticipated restricted affect on home firms.

Some trade watchers level to potential gross sales elsewhere.

“When you take a long-term view, the impact will probably be diminished, with new semiconductor vegetation coming into operation in locations like america and Japan,” stated Takahiro Shinada, a professor at Japan’s Tohoku College.

Japan, which as soon as dominated chip manufacturing however has seen its market share slip to about 10 %, continues to be a serious provider of chipmaking machines and semiconductor supplies. Tokyo Electron and Display make round a fifth of the world’s chipmaking instruments, whereas Shin-Etsu Chemical and Sumco produce most silicone wafers.

Shares of Nikon and Advantest rose 0.8 % and 1.9 % respectively after the information, broadly consistent with the broader market’s 1.1 % rise. Tokyo Electron and Display have been little modified.

“We are going to proceed to adjust to any guidelines and work to maximise our outcomes inside them,” a Nikon spokesperson stated.

Tokyo Electron and Advantest declined to remark.

© Thomson Reuters 2023