Japan mentioned on Friday it’s going to prohibit exports of 23 varieties of semiconductor manufacturing tools, aligning its know-how commerce controls with a US push to curb China’s skill to make superior chips.
Japan, residence to main international chip tools makers similar to Nikon and Tokyo Electron, didn’t specify China because the goal of the measures, saying tools makers would want to search export permission for all areas.
“We are fulfilling our responsibility as a technological nation to contribute to international peace and stability,” Minister for Economy, Trade and Industry Yasutoshi Nishimura informed a information convention.
Japan desires to cease superior know-how getting used for army functions and doesn’t have one particular nation in thoughts with the measures, he mentioned.
But Japan’s resolution is seen as a significant diplomatic win for US President Joe Biden’s administration, which in October introduced sweeping restrictions on China’s entry to US chipmaking tech to sluggish its technological and army advances.
Without the cooperation of trade heavyweights Japan and the Netherlands, the US measures could be ineffective and its firms would face a aggressive drawback.
Japan and the Netherlands in January agreed to be part of the U.S. in proscribing tools exports to China that might be used to manufacture sub-14 nanometre chips, however didn’t announce the pact to keep away from upsetting China, sources mentioned earlier.
Japan has by no means publicly acknowledged any settlement.
A nanometre, or one-billionth of a metre, refers to a selected semiconductor trade know-how, with fewer nanometres usually which means the chip is extra superior.
In the Netherlands, the federal government mentioned in a letter to parliament this month it deliberate to prohibit chipmaking tools 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 “not to follow export control measure by certain countries”.
Limited Impact?
Japan mentioned 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 seemingly to have an effect on tools manufactured by at the least a dozen Japanese firms, similar to Nikon, Tokyo Electron, Screen Holdings, and Advantest.
Takamoto Suzuki, head of financial analysis for Marubeni in China, mentioned the measures could be a blow to Japanese tools makers given the absence of a powerful home chip market.
“It will undermine the market development of Japanese companies and certainly reduce their competitiveness from a regulatory aspect,” he mentioned.
When requested in regards to the affect, minister Nishimura mentioned, with out elaborating, that he anticipated restricted affect on home firms.
Some trade watchers level to potential gross sales elsewhere.
“If you take a long-term view, the effect will be diminished, with new semiconductor plants coming into operation in places like the United States and Japan,” mentioned Takahiro Shinada, a professor at Japan’s Tohoku University.
Japan, which as soon as dominated chip manufacturing however has seen its market share slip to about 10 %, remains to be a significant provider of chipmaking machines and semiconductor supplies. Tokyo Electron and Screen 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 Screen have been little modified.
“We will continue to comply with any rules and work to maximize our results within them,” a Nikon spokesperson mentioned.
Tokyo Electron and Advantest declined to remark.
© Thomson Reuters 2023
