Japan's export curbs on chip equipment to China take effect

Tokyo : As part of US-led efforts to stop China from creating high-end semiconductors suitable for military applications, Japan's curbs on the export of advanced chip-making equipment went into effect on Sunday, Kyodo news reported.

Japan included 23 goods used in chip fabrication that need authorisation for export with the modification of a trade ministry ordinance under the foreign currency law. Kyodo News is a nonprofit cooperative news agency based in Minato, Tokyo.

China has reacted negatively to the decision, despite Japan's failure to mention that the export limitations are primarily aimed at China, the world's second-largest economy.

In apparent retaliation for US semiconductor export limits that target China, Beijing has declared that it will limit the exports of gallium and germanium, two rare earth metals essential for chip manufacture, starting next month, according to Kyodo news.

In October last year, the US came up with a set of export controls on certain high-end chips that China could use to train artificial intelligence systems and modernize its military. The US also asked Japan and the Netherlands, which possess advanced chip-manufacturing technologies, to follow suit as well.

As a result of the new rules, Japan's list of prohibited commodities now also includes cleaning, examination, and lithography equipment. Lithography is a method that allows for the creation of intricate patterns that can be etched into semiconductor wafers, which are necessary for the manufacture of cutting-edge chips

The United States, a crucial security ally of Japan, South Korea, and Taiwan are among the 42 nations and regions to whom the Japanese government has made it easier to export such technology, reported Kyodo news.

The laws are anticipated to have an impact on about ten Japanese manufacturers of this equipment.