By Alimat Aliyeva

The tightening of U.S. economic pressure on China threatens the interests of Japanese semiconductor equipment manufacturers, Azernews reports.

The expected increase in U.S. economic pressure on China, especially if Donald Trump wins the 2024 presidential election, may seriously affect the interests of Japanese electrical engineering companies, particularly those involved in producing semiconductor equipment.

Managers at leading Japanese companies in the industry warn that new U.S. sanctions are likely to have a negative impact on the business of semiconductor equipment manufacturers. The management of one of the largest corporations, Kokusai Electric, states that by March 2026, China's share of its exports will decrease from the current 50% to 30%. Tokyo Electron, another major Japanese player in this field, is making similar predictions.

Under pressure from the administration of President Joe Biden, the U.S. government has already restricted the supply of cutting-edge technologies to China, particularly those used in semiconductor manufacturing. However, Nikkei reports that in the future, these restrictions may extend to older models of equipment. This would create additional challenges for Japanese and Dutch manufacturers, who control a significant portion of the global semiconductor equipment market.

In response to the threat of new sanctions, China is actively increasing its purchases of semiconductor equipment that could potentially be banned. In 2023, China's share of global semiconductor equipment imports increased from 20% to 40%, and in the second quarter of 2024, it already accounted for 46%. At the same time, Beijing is intensifying efforts to develop its own semiconductor industry in order to reduce dependence on foreign suppliers.