Key facts
- Japan's top five chipmaking equipment suppliers saw a 10% drop in sales to China for the year ended March 31.
- This is the first recorded decrease in sales to China for these companies.
- Beijing's push for domestic chip industry growth is a primary driver of the sales decline.
- Japan has implemented export controls to restrict China's access to advanced chipmaking technology.
- Japan's global semiconductor market share has significantly decreased since the late 1980s.
Japan's leading chipmaking equipment suppliers have experienced a 10% decrease in sales to China for the fiscal year ending March 31, marking the first-ever decline. This downturn is a direct consequence of Beijing's strategic push to develop its domestic semiconductor industry and reduce its reliance on foreign technology.
Historically, Japan held a dominant position in the semiconductor market, supplying nearly 90% of memory chips and over 50% of the total market in the past. However, shifts in the industry and geopolitical tensions have led to a reduction in Japan's global market share to approximately 10%.
In response to U.S. restrictions aimed at slowing China's technological advancements, Japan has also implemented its own export controls on 23 types of chipmaking equipment. These measures target tools used in critical processes like cleaning and forming layers on silicon wafers, as well as those for extreme ultraviolet lithography.
Companies like Tokyo Electron, the world's third-largest semiconductor manufacturing tool supplier, have seen significant drops in their China sales. Screen Holdings, a leading manufacturer of silicon wafer cleaning equipment, expects its shipments to China to constitute 20% of its chipmaking equipment sales. Advantest, a chip-testing equipment maker, noted that while direct impacts from U.S. restrictions are minimal, indirect effects could arise if customers alter their business plans due to broader equipment supply disruptions.