Japan to strengthen chip restraints

U.S. lawmakers have urged Japan to tighten restrictions on semiconductor manufacturing equipment sales to China, warning that failure to comply could result in U.S. restrictions on Japanese companies. In a letter dated October 15, House China Select Committee Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi expressed concerns over the flow of Japanese technology contributing to China's growing semiconductor capacity. They dismissed claims that such restrictions have harmed companies like Tokyo Electron, pointing to rising stock prices and U.S. subsidy programs as evidence of limited negative impact. The letter emphasizes the necessity of cooperation between the U.S., Japan, and the Netherlands to curb China's chip ambitions while highlighting the potential risks to national security. The lawmakers mentioned that without multilateral efforts, the supply of semiconductor equipment could allow China to gain a significant competitive advantage in technology production.