China threatens Japan. It’s about the production of semiconductors
The Japanese have a big problem because two superpowers are putting pressure on them. The US and China demand completely different things, and one side is making threats.
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The latest information reveals that high-ranking Chinese officials have repeatedly done so recently “they warned” Japan. China does not want the Japanese to follow in the footsteps of the United States regarding sanctions imposed on the sale and servicing of advanced equipment used in the production of semiconductors.
Japan finds itself between a rock and a hard place
If this happens, China is ready for “serious economic repercussions”. There are concerns that the worst effects of Chinese retaliation would hit the automotive industry in Japan. It would be a painful blow, because Toyota is one of the largest employers in the Land of the Rising Sun.
Japan is a densely populated but resource-poor country. Meaning that many raw materials are importedand the closest and most obvious source is China. It is for this reason that Japanese politicians must very carefully balance between the “Dragon” and the “bald eagle”.
Some consolation for the Japanese may be the fact that their semiconductor industry is no longer as significant as it once was. Only one company matters – Tokyo Electron (TEL). In July, it unveiled the Acrevia system, a device using a gas cluster beam (GCB) designed to enhance patterns created by EUV machines. A bigger blow to China is being cut off from Dutch tools ASML.
The US, Japanese and TEL governments have not commented on the Bloomberg report so far. However, the Chinese Ministry of Foreign Affairs strongly opposed the sanctions, calling them unfair. This is hardly surprising when the largest Chinese manufacturer – SMIC – until 2026 it is to continue using the old 7 nm lithography.
