Tech war: Chinese chip equipment imports from Japan saw a spike in June ahead of trade restrictions, customs data shows
- In June, imports of chip-making gear from Japan reached US$804 million, up 41.6 per cent from May despite being 10.5 per cent down year on year
- Japan’s move follows tighter controls on exports of certain advanced semiconductor tools imposed by the Netherlands on June 30
China’s imports of semiconductor manufacturing equipment from Japan increased more than 40 per cent in June from a month earlier, as local chip makers rushed to stock up ahead of Tokyo’s new export restrictions that came into effect on Sunday.
In June, imports of Japanese chip-making gear reached US$804 million, up 41.6 per cent from May despite being 10.5 per cent down from the same period last year, according to a report from Chinese chip industry portal Ijiwei on Thursday, citing non-public Chinese customs data.
Among the equipment with the highest value, imports of photolithography steppers for printing chip designs on wafers grew by 137.1 per cent to US$62.4 million, while the value of etching and stripping machines brought into Japan increased 370.1 per cent to US$44.4 million, according to the data.
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The increase in imports comes as Japan’s new export control measures, which took effect from July 23, require domestic companies to apply for a licence to sell 23 types of chip-manufacturing technologies to a foreign country. The list includes equipment for cleaning, deposition, lithography and etching.
Japan’s move follows tighter controls on exports of certain advanced semiconductor tools imposed by the Netherlands on June 30. Last October, Washington issued a new set of export controls aimed at restricting China’s ability to develop high-end chips, and it has since put pressure on allies to follow suit.
Japan has been China’s largest source of chip-making equipment since 2015, accounting for about one-third of total imports. Last year, the import value reached US$10.7 billion, an increase of 2.68 times compared to US$3.98 billion in 2015, according to the Ijiewei report.
In the first sixth months of the year, however, the total value of China’s chip equipment imports from Japan decreased 13.2 per cent to US$4.83 billion, in line with the downward trend in chip imports during the same period, reflecting expanded US efforts to limit China’s access to advanced chips and related equipment.
From January to June, China’s chip imports slumped 18.5 per cent year on year by volume, with imports from Japan and South Korea dropping 11.1 per cent and 19.6 per cent, respectively, according to the latest China customs data.
In the second quarter of 2023, semiconductor manufacturing equipment imported from Japan dropped 10.5 per cent from the previous quarter and 10.1 per cent from last year. The import volume is expected to continue to decline in the third quarter as a result of the export control measures, the Ijiwei report said.
In apparent retaliation for Western semiconductor export restrictions targeting China, Beijing announced earlier this month that it would limit exports of gallium and germanium, two rare earth metals essential for chip manufacturing, starting from August 1.
