US wants to use Japan to hit China in chip war. Japanese fear retaliation on their Achilles heel

The United States is stepping up its efforts to hinder China’s technological development on the grounds of “national security.” Over the past few years, we have seen the United States implement export controls to limit the ability of American companies to export cutting-edge technology to the Asian giant.

We have also witnessed Washington’s intentions to use the tools at its disposal to prevent foreign companies such as Dutch ASML from selling some of their products to Chinese companies. Financial Times points out that The Biden administration is trying to go a step further, specifically in Japan.

Tokyo Electron at the center of controversy

The US objective is quite clear: it is a priority to limit China’s ability to develop and manufacture its own semiconductors, components that could be used for military purposes. This is where Tokyo Electron, a Japanese high-tech company that is projecting itself as the future “Japanese ASML”, comes into play.

Tokyo Electron has a portfolio that includes, among other things, plasma etching equipment and wafer deposition systems. These are key elements for chip manufacturing. Well, some of these products could soon be under export controls closely watched by Washington and we say could because it is a rather complex issue.

The sources of the aforementioned newspaper explain that the United States and Japan are in talks and, although they are close to reaching an agreement, the Japanese They feel pressured by its commercial and military partner. Furthermore, if this were not enough, they fear that China could retaliate precisely in a sector as important as it is sensitive: that of minerals.

If there is one thing that Japan does not have in abundance, it is precisely gallium and granite. We are talking about basic natural resources for Japanese industry that are generally imported from China. A blockade by this country could mean a headache for Japan, which would have to look for alternative suppliers.

So these days export controls are being negotiated on Japanese companies that will reach China, and it is being done with a surgical precisionTokyo is trying not to upset the Asian giant too much, while seeking to respond effectively to the United States, one of its main international partners.

Sources have also mentioned that there is some unrest in Japan with the United States. This is because the Joe Biden administration is ready to block Nippon Steel’s $15 billion acquisition of US SteelWell, the argument for ending this transaction is, again, “national security.”

Images: MIT | Alejandro Luengo

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