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Japan Imposes Microchip Export Ban, Angering China

Tokyo – Japan imposed export controls on superior microchip applied sciences this week in a transfer extensively seen as focusing on China, mirroring current restrictions imposed by the United States and the Netherlands, two different main producers of cutting-edge semiconductors.

Tokyo listed 23 kinds of semiconductor expertise that at the moment are topic to export restrictions, starting July 23. They embrace superior microchip manufacturing tools, comparable to machines that deposit movies on silicon wafers, to gadgets that etch out the microscopic circuits of chips.

The controls will have an effect on China’s capacity to make superior chips, analyst Yoshiaki Takayama of the Japan Institute for International Affairs in Tokyo stated.

“The Japanese measure complements U.S.-led export control measures because the number of companies with the capacity to manufacture cutting-edge chips is extremely limited,” Takayama informed VOA in an interview Wednesday. “The Japanese measure makes it difficult for China not only to import advanced chips, but also to manufacture them.”

He added that Beijing seems to be shifting its semiconductor technique by specializing in middle- and low-end semiconductor manufacturing reasonably than cutting-edge semiconductor manufacturing.

Western controls

The United States banned the export of some superior microchips and semiconductor manufacturing expertise to China in October and urged Western allies to comply with swimsuit. The Netherlands – one other key producer of semiconductors – imposed comparable measures in June. Taiwan has additionally pledged to help Washington’s transfer.

FILE - Flags of China and U.S. are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken Feb. 17, 2023. FILE - Flags of China and U.S. are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken Feb. 17, 2023.

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The U.S, says it needs to cease Beijing utilizing the expertise for army functions.

At the G7 summit in Japan in May, allies agreed on the necessity to ‘de-risk’ from potential Chinese financial coercion and keep away from turning into reliant on China for semiconductor applied sciences.

These mixed measures will severely have an effect on China’s capacity to maintain up with Western expertise, Takayama stated, hurting its capacity to fabricate state-of-the-art semiconductors and improve its manufacturing capability within the quick to medium time period.

FILE - Nishimura Yasutoshi, Minister of Economy, Trade and Industry (METI), talks during an interview with Reuters in Tokyo, Japan, April 5, 2023. FILE - Nishimura Yasutoshi, Minister of Economy, Trade and Industry (METI), talks during an interview with Reuters in Tokyo, Japan, April 5, 2023.

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“Unlike the traditional mechanical technology industries, where reverse engineering has produced important technological learnings, reverse engineering does not produce useful knowledge in the semiconductor manufacturing sector,” Takayama stated.

“Moreover, today’s scientific progress is largely due to big data analysis and simulations rather than repeated trial and error. So, it seems that China, with its limited access to cutting-edge semiconductors, could fall behind in scientific and technological R&D,” he informed VOA.

Unlike the United States and the Netherlands, Japan didn’t identify China because the goal of its export restrictions, which apply to 160 international locations. However, Beijing nonetheless reacted with anger.

“In disregard of China’s serious concerns, Japan insisted on making and implementing export control measures that are clearly aimed at China. … We will closely monitor the impact of measures and resolutely safeguard our own interests.”” Mao Ning, a spokesperson for the Chinese Foreign Ministry, informed reporters July 24.

US Commerce Secretary Gina Raimondo addresses the media during the Indo-Pacific Economic Framework meeting in Detroit, Michigan, May 27, 2023. US Commerce Secretary Gina Raimondo addresses the media during the Indo-Pacific Economic Framework meeting in Detroit, Michigan, May 27, 2023.

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In a retaliatory move, China banned the import of semiconductors from the American firm Micron in May, citing national security concerns. Some firms in Japan fear Beijing will seek to restrict their imports, Takayama said.

“Such Chinese measures could possibly be in opposition to particular person Japanese corporations, as within the case of the sanctions in opposition to Micron, or Beijing would possibly prohibit commerce with Japan for particular merchandise,” he informed VOA.

Analysts say it’s vital that Western allies coordinate their export controls. The U.S. is anticipated to replace its record of banned semiconductor applied sciences in coming weeks.

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