TOKYO/NEW YORK, July 24 (Reuters) – Japan’s imposition of export controls on chip making tools to align with a U.S. policy restricting China’s ability to produce advanced semiconductors is worrying some officials in Tokyo who believe a combative U.S. approach may hamper coordination and needlessly provoke Beijing.From this week, Japan is restricting 23 types of equipment, ranging from machines that deposit films on silicon wafers to devices that etch out the microscopic circuits of chips that could have military uses.But, while the U.S. referenced China 20 times in its October announcement targeting Chinese companies, Japan has chosen broad equipment controls not specifically aimed at its bigger neighbour.”We feel an odd discomfort with how the U.S. is doing this. There’s no need to identify the country, all you need to do is control the item,” a Japanese industry ministry official told Reuters. Japan can’t sanction countries unless they are involved in a conflict, the source added.Japan’s trade and industry minister told reporters when announcing Japan’s measure in March that China was only one of 160 countries and regions that would be subject to controls and that Japan’s rules were not meant to follow the U.S.Even so, China has warned Japan to backdown.Tokyo and Washington share concerns about China’s push for advanced technologies and in May agreed with other Group of Seven industrial democracies on “de-risking” from potential Chinese economic coercion.However, differences in chip making equipment controls could test that unity, should either gain a competitive advantage over the other by allowing exports the other blocked.”Each country is responsible for its own licensing policies, and on top of that it’s up to each country to enforce the licensing decisions that it undertakes,” said Emily Benson, the director of the trade and technology project at the bipartisan nonprofit Center for Strategic and International Studies in Washington.Japan is not applying a U.S. standard of presumption of denial and will allow exports whenever possible, a second Japanese government official said. The Japanese government sources asked to remain anonymous because of the sensitivity of the issue.There may also be underlying tensions because unlike Japan and the Netherlands, which will implement controls starting September, the U.S. is not limiting restrictions to specific tools.”The U.S. rules still restrict other items and services the others do not,” said Washington trade lawyer Kevin Wolf.Reuters contacted six chip tool makers in Japan. Two of them, deposition machinery maker Kokusai Electric and Japan’s leading chip tool maker Tokyo Electron (8035.T), said they expect Japan’s controls to have a limited business impact.Chip tester company Advantest Corp (6857.T) said none of its products are affected.Lithography machine makers Nikon Corp (7731.T) and Canon Inc (7751.T), and wafer cleaner manufacturer Screen Holdings (7735.T) did not…
Link from www.reuters.com rnrn