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Japan joins US, Netherlands in restricting chip equipment exports

The Editor by The Editor
April 3 2023
in Global News
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Japan joins US, Netherlands in restricting chip equipment exports

Japan has joined the United States and the Netherlands to enact export restrictions on 23 technologies used in the production of semiconductor manufacturing equipment in China.

Japan’s Ministry of Economy, Trade, and Industry said the development was important amid intense pressure by the US to reduce China’s supply of chipmaking equipment.

This move was followed by the Dutch government recently according to Reuters.

“We are fulfilling our responsibility as a technological nation to contribute to international peace and stability,” Japanese Trade Minister, Yasutoshi Nishimura, said during a press conference.

Unlike the United States, which has ratified far-reaching export restrictions aimed at Chinese chipmakers and government institutions, Japan’s export controls are reportedly being applied on its terms.

The rules, which are slated to go into effect in July, will necessitate Japanese semiconductor equipment and materials suppliers to obtain permission before exporting kit to any region.

This suggests buying chipmaking goods from Japan is about to get a lot harder for everyone — not just China.

According to Reuters, the approach reflects that of The Netherlands, which precisely evaded mentioning China.

And it instead focused on preventing sensitive technologies from being used for undesired military applications by foreign powers.

The whole development has been viewed as a victory for the US. While the Joe Biden administration enacted firm export controls excluding many American equipment vendors from doing business in China without permission, it lacked the authority to prevent other nations from acquiring chipmaking kits elsewhere.

In the months that followed, the US engaged in a pressure campaign to convince its allies to join its cause.

Although Japan’s semiconductor chip industry is nowhere as large as Taiwan’s or South Korea’s, it remains a key supplier of manufacturing equipment, including deep ultraviolet lithography (DUV) machines used to produce chips down to about 10nm.

Two of the largest producers of this tech include Japanese optics and camera makers Canon and Nikon.

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