Tech war: Chinese factories fret over potential Japanese chip equipment ban, swarm second-hand dealers with enquiries
- After Japan reportedly agreed to a US request to tighten its export controls of chip-making equipment, Chinese factories are preparing for the worst
- While the US and Japan have yet to officially disclose details of their agreement, it could affect suppliers such as Nikon and Tokyo Electron
A potential move by Japan to restrict the export of some advanced semiconductor equipment to China has set off alarm bells among Chinese clients, with traders of second-hand machines reporting a notable surge in enquiries.
The uncertainty has fuelled anxiety among Chinese factories that are in need of foreign machines to expand or upgrade their production.
Consultations from clients have increased significantly over the past two weeks, as prices of certain imported Japanese equipment shot up amid speculation on the new restrictions, according to Johnny Liao, a sales manager at a second-hand equipment business based in the southern Chinese tech hub of Shenzhen.
An equipment dealer in Ningbo city south of Shanghai, who resells mature node equipment made by Nikon and Canon, said he also noticed a rise in enquiries from customers recently.
Tokyo is set to introduce updated export controls “this spring”, according to a report by Japanese news agency Kyodo, citing multiple unidentified government sources. Under an amended government order, export of cutting-edge chip equipment will be subjected to approval by Japan’s trade ministry, the report said.
A Tokyo-based sales representative, who helps his company sell Japan-made equipment to Chinese clients, said any tightening of Japan’s export control is set to raise costs, difficulties and uncertainty in trade with China.
