Japan Joins US & Netherlands on Semi Equipment Controls

Japan has announced plans to impose export restrictions on 23 types of equipment used in the production of semiconductors, as part of a three-way agreement with the US and the Netherlands to limit China’s access to cutting-edge chips. The move by Japan follows similar curbs by the US aimed at restricting China’s access to advanced technology in an escalating battle over the technology.

The restrictions will cover six categories of equipment used in chipmaking, including the most specialized areas of lithography and etching, and come into effect in July. The scope of Japan’s restrictions goes further than those imposed last year by the US.

The move is seen as a response to growing geopolitical tensions and the US-China decoupling, which have raised pressure on Japanese companies to work out a strategy that allows them to straddle both markets. Japanese officials said the restrictions were part of Japan’s responsibility as a technological nation to contribute to international peace and stability, adding that the controls were not aimed at any particular country.

The restrictions will affect a broader range of companies than previously expected, with approximately 10 companies likely to be affected. Chinese chip companies have relied on equipment made by companies such as Tokyo Electron and Nikon, and industry experts say the equipment on the Japanese list is essential for the manufacture of sophisticated chips.

The move has been welcomed by the US, with the US ambassador to Japan, Rahm Emanuel, calling it the third example this week of the strengthening US-Japan alliance after earlier deals on critical minerals and ethanol.