Japan talking about joining US restrictions on equipment sales to China

Author: EIS Release Date: Nov 11, 2022

Japan has begun discussions about joining the US restrictions on sales of semiconductor manufacturing equipment to China, reports the Nikkei.

 

“We are in communication with the U.S. and holding hearings with domestic companies based on that,” said Yasutoshi Nishimura, Japan’s economy, trade and industry minister, earlier this week.

 

The restrictions allow companies to apply for a licence but there is a presumption it will be refused.

 

The restrictions apply to equipment, software and people.

 

“We were talking to our allies. No one was surprised when we did this, and they all know that we’re expecting them to cover likewise,” Alan Estevez, US undersecretary of commerce for industry and security stated last week.

 

ASML has already told it’s US employees to stop servicing Chinese customers.

 

With China buying $22 billion worth of semiconductor manufacturing equipment this year, the manufacturers are taking a big hit to revenues. Applied estimates the hit to its Q3 sales at $250-550 million.

 

“This will actually result in even better cooperation between Japan and the United States and fewer restrictions on joint development and production of advanced node items,” said Kevin Wolf, former assistant secretary of commerce under President Obama.