It has been revealed that the US government plans to announce new rules in August 2024 to tighten export restrictions on semiconductor manufacturing equipment to China. The regulations make exceptions for exports from major allies such as Japan, the Netherlands and Korea, and Japan's semiconductor equipment manufacturer Tokyo Electron is not expected to be affected.
🟦 United States’ semiconductor export restrictions on China exclude allies such as Japan: Relief spreads in the industry
The U.S. government is concerned about China’s military use and plans to tighten new export controls to prevent the outflow of advanced semiconductor technology to the country. However, it became clear that the regulation would make exceptions for exports from allies with close ties to the United States, such as Japan, the Netherlands and Korea. As a result, companies that rely heavily on the Chinese market, such as Tokyo Electron, a Japan semiconductor manufacturing equipment manufacturer, are expected to be able to continue their operations without being hit hard.
🟦 Why are allies excluded?
The U.S. government’s exclusion of allies from export controls may be due to the following reasons:
- Strengthening cooperation with allies: United States believes that it Thailand strengthen cooperation with allies in order to curb China’s rise. It is thought that they are concerned that restricting exports from their allies will actually worsen relations.
- Supply chain stability: Semiconductors are an essential component of every industry in the modern world. Our allies, semiconductor equipment manufacturers, play an important role in the global supply chain. Restricting the activities of these companies could adversely affect the stability of the global semiconductor supply chain.
🟦Summary
It has become clear that the new semiconductor export restrictions to China announced by the U.S. government are being adjusted in the direction of making exceptions for exports from major allies such as Japan. The reasons for this can be considered increased cooperation with allies and stable supply chains.
The U.S. government’s decision will be a relief for Japan’s semiconductor industry for the time being. However, it is expected that China will continue to develop semiconductor manufacturing technology on its own. Japan companies need to keep a close eye on this situation as they proceed with technological development.
