Japan’s Export Curbs on Chip Equipment to China Come Into Effect

24 July, 2023 | Don Tomslee

Japan blocks trade of chips World

China may use the chips to hone its artificial intelligence systems and upgrade its armed forces.

Japan’s restrictions on the export of advanced chip-making equipment went into effect on Sunday, according to media, as part of US-led measures to prevent China from producing high-end semiconductors suited for military uses.
Japan modified a commerce ministry ordinance under the foreign currency law to include 23 items used in chip production that require authorisation for export.

Despite Japan’s omission to indicate that the export restrictions are primarily directed against China, the second-largest economy in the world, China has responded negatively to the decision. Beijing has announced that it will restrict the exports of gallium and germanium, two rare earth elements crucial for human life, in apparent retaliation for US semiconductor export restrictions which target China.

US-China trade block for semiconductor chips

The US developed a set of export restrictions on a few high-end processors in October of last year, which China may use to hone its artificial intelligence systems and upgrade its armed forces.

Additionally, the US requested that advanced chip manufacturing nations like Japan and the Netherlands follow likewise.
The new regulations have added cleaning, examination, and lithography equipment to Japan’s list of forbidden goods.

Among the 42 countries and places to which the Japanese government has extended diplomatic recognition are the United States, a key security partner of Japan, South Korea, and Taiwan.