Japan curbs chip exports to China

Japanese restrictions to exports of advanced chip-making equipment came into force on Sunday, in line with US-led efforts to curb China’s ability to develop high-end semiconductors capable of being used for military purposes.

With the revision of a Ministry of Commerce ordinance under the foreign exchange law, Japan added 23 chip-making items that require approval for export. The measure has provoked a reaction from China, although Japan has not specified that the world’s second largest economy is the main target of export restrictions.

In October last year, the United States put in place a broad set of export controls on certain high-end chips that China could use to train artificial intelligence systems and modernize its military, while asking Japan and the Netherlands, which have advanced chip-making technologies, to follow suit.

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The Dutch government has also announced new restrictions on exports of advanced semiconductor equipment.

With the revision of an ordinance of the Ministry of Commerce under the foreign exchange law, Japan added 23 items of chip manufacturing that require approval for export

Under the new regulations, Japan’s list of restricted items now includes cleaning, proofing and lithography equipment, a technology used to create complex patterns that can be etched onto semiconductor wafers, essential for producing next-generation chips.

The Japanese government has simplified the process of exporting this equipment to 42 countries and regions, including the United States, Japan’s key security ally, South Korea and Taiwan.

The regulation is likely to affect about 10 Japanese companies dedicated to the manufacture of this type of equipment.

However, Industry Minister Yasutoshi Nishimura has stated that the impact on domestic companies is likely to be limited as export controls focus on “extremely advanced” technology.