Japan's Chip Equipment Sales to China Decline 10% Amid Export Curbs
Japanese chipmaking equipment sales to China dropped 10% for the fiscal year ending March 3, marking the first decline. This decline, attributed to China's push for domestic semiconductor capabilities, highlights the unintended consequences of Japan's export restrictions aligned with U.S. policies.
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For the fiscal year ending March 3, Japan's top five chipmaking equipment manufacturers reported a 10% decrease in sales to China, totaling 1.47 trillion yen ($9.19 billion). This downturn is attributed to China's enhanced focus on self-reliance in semiconductor production, which has gained momentum as Japan implemented export restrictions on 23 types of semiconductor manufacturing equipment in 2023.
Notably, sales from Tokyo Electron in China fell to 27% of its total, a significant drop from 50% the previous year. As Japanese companies tighten their export controls, the Chinese semiconductor industry is rapidly advancing, shifting reliance away from Japanese suppliers. The impact of these measures could ultimately harm Japanese firms more, as they may lose market share in a vital export market.
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