Japan imposes restrictions on chip-making equipment exports, following US limitations on China

Japan has announced new restrictions on exports of chipmaking equipment to countries that pose security risks. This will include 23 types of semiconductor manufacturing equipment and these restrictions aim to protect national security interests by limiting the flow of advanced technologies to potential adversaries. 

At a press conference, Yasutoshi Nishimura, Japan’s Minister for Economy, Trade and Industry, stated that the country is fulfilling its duty as a technologically advanced nation to aid in promoting global peace and stability. Manufacturers will have to obtain authorisation for all areas of export.

Japan is one of the world’s leading manufacturers of chip-making equipment, and the country’s companies, such as Tokyo Electron and Nikon, could be affected by the new restrictions, although Nishimura expects limited impact on domestic firms. 

While Japan did not explicitly mention China as the objective of the limitations, it is noticeable that Japan’s move aligned with the USA export rules of 2022. Mao Ning, a Chinese foreign ministry spokesperson has said in the press conference: “Many countries are concerned about the US’s practices of decoupling and disruption of industrial and supply chains and trade protectionism, which destabilize the industrial and supply chains, do not serve world economic growth and are in no country’s interest.”
The impact of these restrictions on the global supply chain for semiconductors and other advanced technologies remains to be seen, and some experts warn that they could lead to increased geopolitical tensions and economic instability.