Japan said on Friday it would restrict exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with U.S. pressure to curb China’s ability to make advanced chips.
Japan, which is home to major global chip equipment makers such as Nikon and Tokyo Electron, did not specify China as a target of the measures, saying equipment makers would need to seek export permits for all regions.
“We are fulfilling our responsibility as a technological nation to contribute to international peace and stability,” Economy, Trade and Industry Minister Yasutoshi Nishimura told a news conference.
Japan wants to prevent advanced technology from being used for military purposes and does not have any specific country in mind for these measures, he said.
But Japan’s decision is seen as a major diplomatic victory for the administration of US President Joe Biden, which in October announced sweeping restrictions on China’s access to US chipmaking technology to slow its technological and military advances. Was.
Without the cooperation of industry giants Japan and the Netherlands, the US measures would be ineffective and its companies would face a competitive disadvantage.
Japan and the Netherlands agreed in January to join the US in restricting exports to China of equipment that can be used to manufacture sub-14 nanometer chips, the sources said earlier. To avoid provocation he did not announce the agreement.
Japan has never publicly accepted any agreement.
A nanometer, or one billionth of a meter, refers to a specific semiconductor industry technology, fewer nanometers usually means the chip is more advanced.
In the Netherlands, the government said in a letter to parliament this month that it planned to restrict chip manufacturing equipment exports. Dutch major ASML Holding NV dominates the market for lithography systems used to make chips’ minute circuitry.
China, which has accused the US of “technological hegemony” because of its export restrictions, urged the Netherlands to “not comply with export control measures taken by some countries”.
Limited impact?
Japan said it would impose export controls on six categories of equipment used in chip manufacturing, including cleaning, deposition, lithography and etching.
The restrictions, set to take effect in July, are likely to affect devices manufactured by at least a dozen Japanese companies such as Nikon, Tokyo Electron, Screen Holdings and Advantest.
Takamoto Suzuki, head of economic research at Marubeni in China, said the measures would be a blow to Japanese equipment makers given the absence of a strong domestic chip market.
“This will weaken the market development of Japanese companies and certainly reduce their competitiveness from a regulatory aspect,” he said.
Asked about the impact, Minister Nishimura said he expected limited impact on domestic companies, without elaborating.
Some industry watchers point to a possible sale elsewhere.
“If you take a long-term view, the impact will be mitigated by new semiconductor plants coming into operation in places like the United States and Japan,” said Takahiro Shinada, a professor at Japan’s Tohoku University.
Japan, which once dominated chip production but whose market share has declined to about 10 percent, is still a major supplier of chip-making machines and semiconductor materials. Tokyo Electron and Screen makes about a fifth of the world’s chip manufacturing equipment, while Shin-Etsu Chemical and Sumco produce the most silicon wafers.
Shares of Nikon and Advantest rose 0.8 percent and 1.9 percent respectively following the news, roughly in line with the broader market’s 1.1 percent rise. Slight changes were made to the Tokyo Electron and the screen.
A Nikon spokesperson said, “We will continue to comply with any regulations and work to maximize our results within them.”
Tokyo Electron and Advantest declined to comment.
© Thomson Reuters 2023
