Implementing export restrictions on semiconductors with China in mind, preventing diversion to military use
🟦 Semiconductor Export Regulations Revised Foreign Exchange and Foreign Exchange Act
Japan government will implement export controls to deter the military diversion of advanced semiconductor technology. This is to ensure that Japan’s manufacturing equipment is not used for semiconductor development and manufacturing in China. We plan to revise and respond to ministerial ordinances under the Foreign Exchange and Foreign Exchange Act, which require permission from the Minister of Economy, Trade and Industry to export specific products and technologies.
🟦 Major players are the United States, the Netherlands, and Japan
It follows the broad semiconductor export restrictions to China announced by the United States in October 2022. Japan and the Netherlands have also agreed to cooperate. This is because the major semiconductor manufacturing equipment companies are the United States, the Netherlands, and Japan. Among them Japan companies account for 10% of the global market for advanced semiconductor manufacturing equipment.
The U.S. mainly regulates semiconductor edge technology in the 14nm process or less. The revision of the ministerial ordinance in Japan assumes similar products. However, Chinese companies are the only ones who can manufacture semiconductors below 14nm process. Other semiconductor manufacturers can continue their business with mature process equipment or second-hand equipment.
To enforce export restrictions on semiconductors, the target is manufacturing equipment for processes of 14 nm or less
In China, 14nm only affects SMIC, but it does not affect any company.