On Friday, the Economy, Trade and Industry Ministry of Japan announced plans to restrict exports of 23 types of semiconductor manufacturing equipment, bringing its technology trade controls in line with a US effort to limit China’s capacity to produce advanced chips.
The ministry stated in a press release that it would enforce export controls on six categories of equipment used in chip manufacturing, including cleaning, deposition, lithography, and etching, and equipment manufacturers would need to obtain export permission for all regions.
The ministry did not mention China as the target of these measures but stated that it was fulfilling its responsibility as a technological nation to contribute to international peace and stability. The aim was to ensure that military purposes did not employ advanced technology.
The export restrictions, which will come into force in July, are likely to affect equipment manufactured by a dozen Japanese companies, such as Nikon Corp, Tokyo Electron Ltd, Screen Holdings Co Ltd and Advantest Corp.
“At a news briefing, Japan’s Industry Minister Yasutoshi Nishimura stated, “We don’t have one specific country in mind with these measures, and we expect that they will have limited impact on domestic companies.”
Tokyo’s decision, nonetheless, comes after the US in October imposed sweeping restrictions on chipmaking tool exports to China citing concerns that Beijing planned to use advanced semiconductors to enhance its military power. Washington, however, needs Japan and the Netherlands, which are key suppliers of such equipment, to join it to make those restrictions effective.
Japan and Netherlands Agreement
In January, the US, Japan, and the Netherlands reached an agreement to restrict the export of chipmaking equipment to China. This agreement aims to prevent China from using the equipment to produce sub-14 nanometer chips.
Earlier sources have revealed that the pact was not announced to avoid provoking Beijing. Tokyo has never publicly acknowledged that there was an agreement.A nanometre, or one-billionth of a metre, refers to a specific semiconductor industry technology, with fewer nanometres generally meaning the chip is more advanced.
The Netherlands’ government in a letter to the country’s parliament this month also said it plans to restrict chipmaking equipment exports. Dutch company ASML Holding NV dominates the market for lithography systems used to create the minute circuitry of chips.
China, which has accused the US of being a “tech hegemony” because of its export restrictions, urged the Netherlands “not to follow export control measure by certain countries”.
Japan, which once dominated chip production but has seen its global market share slip to about 10 percent, is still a major supplier of chipmaking machines and semiconductor materials.
Tokyo Electron and Screen make about a fifth of the world’s chipmaking tools, while Shin-Etsu Chemical Co Ltd and Sumco Corp produce most silicone wafers.