Japan restricts exports of chipmaking equipment as it adapts to

Japan restricts exports of chipmaking equipment as it adapts to US and China restrictions – Portal

TOKYO, March 31 (Portal) – Japan’s government said Friday it plans to restrict exports of 23 types of semiconductor manufacturing equipment and aligned its technology trade controls to a US push to curb China’s ability to make advanced chips.

The trade and industry minister said in a press release that he will introduce export controls on six categories of equipment used in chip manufacturing, including cleaning, deposition, lithography and etching. China was not specified as a target for these measures because device makers are required to obtain export licenses for all regions.

“We are fulfilling our responsibility as a technological nation to contribute to international peace and stability,” the ministry said, adding that its goal is to stop the use of advanced technology for military purposes.

The export restrictions, which take effect in July, are expected to affect devices manufactured by a dozen Japanese companies including Nikon Corp (7731.T), Tokyo Electron Ltd (8035.T), Screen Holdings Co Ltd (7735.T) and Advantest Corp (6857.T).

“We expect the impact on domestic companies to be limited,” Japan’s Industry Minister Yasutoshi Nishimura said at a news conference. “We do not have a specific country in mind with these measures.”

But Tokyo’s decision comes after the US imposed sweeping restrictions on exports of chipmaking tools to China in October, citing concerns Beijing planned to use advanced semiconductors to bolster its military might. However, Washington needs Japan and the Netherlands, which are major suppliers of such equipment, to join it for these restrictions to take effect.

Japan and the Netherlands agreed in January to join the US in restricting exports to China of chipmaking equipment that could be used to make sub-14-nanometer chips, but did not announce the pact to avoid a provocation Avoiding Beijing’s, sources previously said. Tokyo has never publicly admitted that there was an agreement.

A nanometer or one billionth of a meter refers to a specific semiconductor industry technology, with fewer nanometers generally meaning the chip is more advanced.

The Dutch government also said in a letter to the country’s parliament this month that it plans to restrict exports of chipmaking equipment. Dutch company ASML Holding NV (ASML.AS) dominates the market for lithography systems, which are used to create the tiny circuits that make up chips.

China, which accuses the US of being a “technological hegemony” over its export restrictions, called on the Netherlands to “disobey certain countries’ export control measures.”

Japan, which once dominated chip production but has seen its global market share fall to around 10%, remains a key supplier of chipmaking machinery and semiconductor materials. Tokyo Electron and Screen make about one-fifth of the world’s chip-making tools, while Shin-Etsu Chemical Co Ltd (4063.T) and Sumco Corp (3436.T) make most of the silicon wafers.

Reporting by Tim Kelly and Miho Uranaka; Editing by Christopher Cushing

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