After Japan declared on May 23 that it will put export restrictions on 23 types of chipmaking technology, including advanced semiconductor manufacturing equipment, China’s semiconductor industry is now under renewed pressure from the United States and its allies.
The policy will take effect in July.
In an effort to restrict China’s access to sophisticated semiconductor chips and equipment, the US and the Netherlands enacted similar regulations in recent months.
The US government implemented a number of export restrictions on cutting-edge semiconductor devices in October. Since then, Washington has pushed the Netherlands and Japan to support its efforts to impede China’s semiconductor industry’s growth.
Beijing “strongly opposed” Tokyo’s decision to impose export controls on goods related to advanced semiconductor manufacturing, according to a spokesperson for the Chinese Commerce Department. The spokesperson claimed that the action violates international trade laws and free trade principles and is an abuse of export control procedures.
The possible effects of Japan’s actions have alarmed some Chinese semiconductor industry executives, and analysts have predicted that they will “stifle” China’s efforts to create novel manufacturing techniques for future advanced semiconductor chips.
Pei-Chen Liu, an expert on the semiconductor industry in Asia Pacific at the Taiwan Institute of Economic Research, told DW that China’s semiconductor industry will probably only develop to the 14 nanometers (nm) process, and it will be harder for China to advance beyond this standard in the future because they won’t be able to obtain advanced equipment from Japan, the US, or the Netherlands.
The most cutting-edge chips are about 3 nm, which are mostly for smartphones, while more developed semiconductor chips are at 28 nm or above, which are for vehicles or home electronics. The nanometer node is related to distinct generations of chip manufacturing technologies.
Pei-Chen Liu, a Taiwan Institute of Economic Research expert on the semiconductor industry in Asia Pacific, told DW that China’s semiconductor industry will likely only develop to the 14 nanometers (nm) process, and that it will be more challenging for China to advance beyond this standard in the future because they won’t be able to obtain advanced equipment from Japan, the US, or the Netherlands.
The term “nanometer node” refers to various generations of chip manufacturing technology. The most cutting-edge chips are typically 3 nm or smaller and are used in smartphones, whereas more experienced semiconductor chips are 28 nm or larger and are used in autos or home electronics.
The goal of China becoming totally self-sufficient in semiconductor development and manufacturing, however, will be a “almost impossible task,” Capri added. If these relationships continue, China’s goals of achieving complete independence will be delayed for years because it will be very challenging.
Chinese President Xi Jinping stressed the need of pursuing self-reliance in science and technology while on a visit to the southern Chinese province of Guangdong in April. He emphasised that this action is essential to progressing Beijing’s modernization efforts. He urged Chinese companies to take “further steps” to boost innovation capacity and advance “achieving breakthroughs” in fundamental technologies.
China’s cyberspace authority declared on May 21 that US memory chip firm Micron had failed the network security examination and had been prohibited from selling its products to operators of critical infrastructure as retaliation for the US-led export control measures.
Gina Raimondo, the Washington state’s secretary of commerce, brought up the matter with Wang Wentao, her counterpart in Beijing, during a meeting between senior American and Chinese commerce officials. Raimondo emphasised on Saturday that Washington won’t put up with Beijing’s refusal to buy memory chips from Micron. She declared that the US vehemently opposes China’s action against the chip giant.
