Japan to restrict exports of semiconductors to China from July

The Japanese government will enforce export restrictions on semiconductor equipment targeting China from July at the earliest. China's semiconductor industry is expected to be hit even harder than the US semiconductor export restrictions.

According to the Nihon Keizai Shimbun and other sources on May 23rd, the Japanese Ministry of Economy, Trade and Industry issued an administrative order adding 23 semiconductor-related items to the export control controls. Equipment required for extreme ultraviolet (EUV) immersion exposure equipment and etching equipment (equipment for removing unnecessary parts from the surface of the processed object) were included in the additional regulations. Japanese companies must obtain permission from the Ministry of Economy, Trade and Industry in advance to export these items.

The revision of the ministerial ordinance will go into effect on July 23 after a two-month publicity period.

The Ministry of Economy, Trade and Industry did not specify specific countries as subject to export restrictions, but Nikkei and other newspapers reported that the ordinance was aimed at China. Earlier this year, at the request of the United States, the Japanese government joined with the Netherlands in restricting exports of semiconductors to China.

Furthermore, the Chinese semiconductor industry is in a state of tension as the Japanese government's export restrictions could lead to even stronger export restrictions from the United States and the Netherlands in the future. The Netherlands may impose export restrictions on semiconductor equipment aimed at China in mid-July.

The Nikkei said that just as China sued the World Trade Organization (WTO) for unreasonable US semiconductor export restrictions, Japan could take similar measures. China's Ministry of Commerce said that Japan's export restrictions would "damage economic and trade cooperation between Japan and China, as well as corporate interests in both countries and affect the stability of industrial supply chains." and protect the legitimate interests of the state."