With Japan's export restrictions, things will be more intricate for China because the country has chip foundries, but they only manufacture low-end chips for home electronics and automobiles
Back in March, Japan announced a severe restriction on exporting 23 kinds of sophisticated semiconductor manufacturing equipment to China following the footsteps of Netherlands and the US. According to the experts, this strategic move will hurt its long-time opponent amid the ongoing geopolitical scuffles in the global semiconductor industry. Media reports stated that these restrictions are likely to commence from the month of July.
Industry sources further revealed that these grave strategies have been unleashed to shatter China’s dream of spearheading the semiconductor industry. South China Morning Post mentioned that these selected items are crucial for semiconductor manufacturing and therefore they have been targeted. Semiconductors, which are now considered the brain of modern electronics have become a colossal battleground between China and the US in regards to access to important technologies and concerns of national security.
Chinese premier Xi Jinping thinks that if they lead the chip industry, then it will be easier for them to grab more wealth and power internationally and they will also win the technology rat-race against its rival US. Chips are now centered in the middle of a tech war, claimed by a Chinese scientist. A month back, the commerce minister of China even requested Japan to withdraw its regulations because it might negatively affect the economic associations and bilateral trade.
A week back, Chinese Ambassador to Japan Wu Jianghao also opined that if Japan’s export ban strategy will help the US to become the sole winner and they will lead the industry globally. Semiconductors are the second largest export of Japan after automobiles to China. In fact, a warning has been given to Japan by Jianghao that if the export restrictions are not taken care of, then the country will lose the profit from the Chinese market, but it will also put the semiconductor industries' future at risk.
The list of items that are banned from export to China includes top-notch tools and supplies required to fabricate advanced chipset. According to the list seen by SCMP, specific deep ultraviolet (DUV) lithography tools that print chips on wafers using a 193nm light source and can advance chip-making technology to 14nm are the primary target, claims Eur Asian Times.