Home News Japan Joins US to Limit China’s Access to Chipmaking Equipment: What It Means for the Global Economy

Japan Joins US to Limit China’s Access to Chipmaking Equipment: What It Means for the Global Economy

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Japan announced on Friday that it will restrict the sale of 23 types of semiconductor-making equipment to places like China. Companies like Nikon and Tokyo Electron will need approval from Japan’s trade ministry before they can sell their products in nearly 160 countries, beginning in July. Though Japan insists these restrictions are not directed at any particular country, its rival China is among those listed as restricted.

The Japanese minister of economy, trade and industry, Yasutoshi Nishimura, said that Japan will work to keep the world peaceful by using their technology.

At the start of the year, the US and Netherlands agreed to limit China’s access to advanced lithography machines. In March, the Netherlands said it was going to stop overseas sales of special technology in order to protect their country. This will cause problems for ASML- a company that only produces specially made 5nm and 3nm chips that are used in phones and computers.

In China, companies are being built up to replace the special machines that had been used to make tech products but cannot be accessed anymore. The Chinese-made machines aren’t as good yet, however. Shanghai Micro Electronics Equipment (SMEE) is focused on making chips with 90nm node semiconductors – this isn’t very high quality. But SMIC, who is the leading tech company in China, has started creating 14nm and 7nm chips, even without access to foreign equipment. This is a sign of progress!

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