Japan joins US in restricting China’s access to microchips

Japan is limiting its exports of semiconductor-related equipment and China is on its radar.

Japan is tightening measures to restrict China’s access to advanced microchip equipment. The country just recently announced that it would tighten export controls on 23 semiconductor products, CNN reports. When this new law goes into effect next July, companies like Nikon and Tokyo Electron will need to get permission from Japan’s Ministry of Economy, Trade and Industry if they want to sell their tools in more than 160 countries around the world. A government spokesman told CNN that these restrictions do not vary by country. At the same time, East Asian competitor Japan is included in the list of countries with limited access.

Japan restricts exports of semiconductor-related equipment

“We will fulfill our obligations to the international community as a high-tech country and help maintain international peace and security,” Yasutoshi Nishimura, spokesman for the Ministry of Economy, Trade and Industry, told reporters.

These restrictions follow similar export controls implemented in the US and the Netherlands. Earlier this year, the three countries signed an agreement to limit China’s access to Western lithographic machines. In March, the Netherlands took action by announcing that it would restrict foreign sales of semiconductor technology in the interest of national security. These restrictions will affect ASML. Last year, a Dutch company was the only company in the world to produce extreme ultraviolet (EUV) lithography machines, which manufacturers use to produce the 5nm or 3nm semiconductors used in our smartphones and computers.

With China in sight

There are companies in China that can avoid shortages in the country’s tech industry due to these restrictions. However, it will take some time before these companies can match the power of their American, Japanese and European competitors. According to a Reuters study, Shanghai Micro Electronics Equipment (SMEE), the only lithographic equipment manufacturer in China, produces machines capable of printing 90nm assemblies. SMIC, the leading semiconductor manufacturer in the country, started mass production of 14nm chips last summer and is starting to produce 7nm chips without using foreign equipment.