Japan’s latest export controls on chipmaking equipment aim to significantly curb China’s ability to make advanced chips. One expert told The Epoch Times that Japan’s move shows its clear stance against China’s communist regime and alignment with the United States.
Tokyo said 42 countries, including the United States and Taiwan, will continue receiving the equipment under a simplified export measure. But China was not among them and will be subject to stricter controls.
The export control measures will take effect in July, according to the Ministry of Economy, Trade and Industry (METI).
Japan is China’s largest source of semiconductor equipment imports. In 2022, China imported $10.7 billion in chipmaking equipment from Japan, accounting for 37.3 percent of the total, according to Chinese customs data. Therefore, Japan’s export control is expected to deal a massive blow to China’s semiconductor industry.
According to a recent analysis by Icsmart, a Chinese tech publication, Japan has a large number of manufacturers covering most types of chipmaking equipment. And that the country’s strength in semiconductor equipment is comparable to that of the United States. Therefore, Japan is the most accessible country to build an advanced semiconductor production line.
The report said, however, Japan’s new restrictive policy means giving up the opportunity to seize the Chinese market at a time when Washington is actively curbing Chinese access to semiconductor-related technologies.
Fang Qi, a UK-based investment consultant, told The Epoch Times on April 10 that Japan’s decision to implement the broad export controls is not unexpected. For it to remain in the world stage of technology, that decision is inevitable, especially amid an ongoing spat between the United States and China over chip technology.
Japan: A Chipmaking Equipment Powerhouse
Fang said that Japan’s industrial technology upgrade has mostly been completed, and it is one of the world’s leading suppliers of chipmaking equipment.In particular, Japanese companies hold key technologies and significant market shares in a number of semiconductor manufacturing segments.
Japan’s Nikon and Canon and the Neherlands’ ASML jointly monopolize the global supply of lithography machines, a key system used to pattern the finest details on advanced microchips.
Recognizing the CCP Threat
Fang said that Tokyo has long seen the threat posed by the Chinese Communist Party (CCP) to the Indo-Pacific region, especially to Japan, and now it has begun to show a stronger and more explicit stance against it.The world’s largest and most advanced chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), is building a new chip plant in Kumamoto Prefecture, Japan, and is considering continuing to set up a second factory in Japan.
Prime Minister Fumio Kishida’s government is concerned that Moscow has set a precedent to encourage Beijing to attack Taiwan, threatening nearby Japanese islands, disrupting supplies of advanced semiconductors, and putting a potential stranglehold on sea lanes supplying Middle East oil.
On Dec. 16, 2022, Kishida’s government approved three national security plans—the National Security Strategy, the National Defense Strategy, and the Defense Force Buildup Plan—to bolster Japan’s defense capabilities amid an increasingly unstable security environment.
Strategic Partnerships to Counter Chinese Aggression
In March, the United States and Japan struck a trade deal on electric vehicle (EV) battery minerals that is key to strengthening their battery supply chains. The minerals include lithium, nickel, cobalt, graphite, and manganese.The swiftly negotiated agreement aims to reduce U.S.-Japanese dependence on China for such materials by prohibiting the two countries from enacting bilateral export restrictions on the minerals most critical for EV batteries.
Fang believes Japan wants to expand its global influence in more ways than just economics, particularly by strengthening its military ties with the United Kingdom and South Korea.
Downing Street called the pact—signed by Prime Minister Rishi Sunak and Kishida in London on Jan. 11—the most important defense treaty between London and Tokyo since 1902.
The pact is part of the UK’s defense and foreign policy “tilt” toward the Indo-Pacific region, following an integrated review in 2021 that recognized the growing impact of China in the area.
The lack of cooperation between the two countries has long undercut U.S.-led efforts to present a united front against China and North Korea.