No more “gray chips”: Japan imposes sanctions on the supply of special equipment to China

The list of special sanctions included all the main lithographic equipment necessary for the development of the processor industry, which China could resell “on the side”.

According to NHK Japan, the Japanese government has begun tightening export controls on semiconductor manufacturing equipment for China. Now all deliveries of high-tech equipment that China badly needs for microelectronics and chip manufacturing will be subject to strict control.

Japan’s Ministry of Commerce has identified 23 products subject to the new rules. These include lithographic machines, the leaders in the production of which are Japanese companies. However, the rules will not affect goods shipped to 42 so-called “white”-listed destinations, including the United States, South Korea and Taiwan, as the ministry acknowledges that they have appropriate export control mechanisms. However, goods destined for China and other countries will be subject to stricter scrutiny.

The move comes after the US asked Japan and the Netherlands, countries with a significant share of the world chip manufacturing equipment market, to tighten export controls.

Competition between the USA and China in the field of advanced technologies is heating up. It all started when the United States, together with the two lithographic technology leaders, imposed joint sanctions on its supply to China. In response, China has limited its supplies of gallium and germanium, metals critical to chip and microcircuit manufacturing.

Previously Focus He talked about the fact that the joint sanctions of the USA, the Netherlands and Japan have not yet worked. China has found a loophole and will bet on chipsets to survive the US and EU sanctions blockade. For example, Beijing is now actively using chiplet technology to develop artificial intelligence and self-driving cars. Chiplets (a product of accelerated chip manufacturing) are of particular importance to China, given the equipment constraints for production processors.

They also sell “enforced” chips for AI in China. Investigative journalists have learned that they are difficult and expensive to acquire, but still possible with a strong desire through front companies.

Source: Focus

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