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Japan to restrict chipmaking equipment exports as it aligns with U.S. China curbs
CGTN
Japan's computer giant Fujitsu displays its wafer at a high-tech exhibition Fujitsu Forum 2019 in Tokyo, Japan, May 14, 2019. /CFP
Japan's computer giant Fujitsu displays its wafer at a high-tech exhibition Fujitsu Forum 2019 in Tokyo, Japan, May 14, 2019. /CFP

Japan's computer giant Fujitsu displays its wafer at a high-tech exhibition Fujitsu Forum 2019 in Tokyo, Japan, May 14, 2019. /CFP

Japan said on Friday it will restrict exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with a U.S. push to curb China's ability to make advanced chips.

Japan said it would impose export controls on six categories of equipment used in chip manufacturing, including cleaning, deposition, lithography and etching.

The restrictions, effective from July, are likely to affect equipment manufactured by at least a dozen Japanese companies, such as Nikon, Tokyo Electron, Screen Holdings Co Ltd. and Advantest Corp.

Takamoto Suzuki, head of economic research for Marubeni in China, said the measures would be a blow to Japanese equipment makers given the absence of a strong domestic chip market.

"It will undermine the market development of Japanese companies and certainly reduce their competitiveness from a regulatory aspect," he said.

According to Chinese Foreign Ministry Spokesperson Mao Ning, the growth of the global chip supply chain is the result of market laws and corporate decisions. She said that when asked about Japan's announcement at the daily press briefing.

"To politicize and weaponize the economic and technology issues and deliberately damage the stability of global supply chain will harm others and oneself," said Mao.

Japan, home to major global chip equipment makers such as Nikon Corp. and Tokyo Electron Ltd., did not specify China as the target of the measures, saying equipment makers would need to seek export permission for all regions.

According to Yasutoshi Nishimura, Japan's Minister of Economy, Trade and Industry, the country wants to stop advanced technology from being used for military purposes and does not have one specific country in mind with the measures.

But Japan's decision is seen as a major diplomatic win for U.S. President Joe Biden's administration, which in October announced sweeping restrictions on China's access to U.S. chipmaking tech to slow its technological and military advances.

Without the cooperation of industry heavyweights Japan and the Netherlands, the U.S. measures would be ineffective and its companies would face a competitive disadvantage.

Japan and the Netherlands in January agreed to join the U.S. in restricting equipment exports to China that could be used to manufacture sub-14 nanometre chips but did not announce the pact, sources said earlier.

Japan has never publicly acknowledged any agreement.

A nanometer, or one billionth of a meter, is a semiconductor industry technology, with fewer nanometers generally indicating a more advanced chip.

In the Netherlands, the government said in a letter to parliament this month it planned to restrict chipmaking equipment exports. Dutch major ASML Holding NV dominates the market for lithography systems used to create chips' minute circuitry.

(With input from Reuters)

Read more: China responds to potential broader ban on ASML's chip-making gear

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