Japan Limits China’s Access to Advanced Chipmaking Machinery Japan is set to restrict exports from companies like Nikon and Tokyo Electron in an effort to limit China's access to advanced semiconductor manufacturing equipment.

Japan has announced it will tighten export controls on 23 types of semiconductor manufacturing equipment, effectively limiting China’s access to advanced chipmaking machinery. The new rules, taking effect in July, will require companies such as Nikon and Tokyo Electron to obtain approval from Japan’s trade ministry before selling their tools in approximately 160 territories worldwide, including China.

The move follows similar export restrictions enacted by the US and the Netherlands, with the three countries reportedly agreeing to limit China’s access to western-made lithography machines earlier this year.

In March, the Netherlands announced restrictions on overseas sales of semiconductor technology in the interest of national security, which will affect Dutch firm ASML, the only company producing extreme ultraviolet lithography (EUV) machines needed for 5nm and 3nm semiconductors.

Although China has domestic companies capable of producing some lithography equipment, they are yet to match the capacity of their American, Japanese, and European counterparts.

For example, Shanghai Micro Electronics Equipment (SMEE) produces machines capable of printing 90nm node semiconductors, while leading semiconductor manufacturer SMIC has started volume production of 14nm chips and has begun making 7nm chips without foreign-made equipment.

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