Last week the Netherlands issued an order that ASML not continue the license to maintain and provide spare parts to some of their chip machine customers in China. This is to prevent existing machines from being modified to produce the latest technology chips for customers subject to sanctions by the United States.
Bloomberg today reported that China has warned Japan if it imposes new chip restrictions. In a meeting of senior Chinese officials with their Japanese counterparts, China threatened to impose restrictions on exports of minerals that Japan needs in the automotive industry. This will have a huge impact on companies like Toyota.
In the middle of last month, China began imposing export barriers on antimony used in electric vehicle (EV) batteries and photovoltaic panels. The order to reduce the export of antimony outside of China was done to ensure the security and interests of the country.
As previously reported, Japan and the Netherlands imposed restrictions on the export of chip-making equipment due to US directives. Tokyo Electron and Nikon are two of the three main manufacturers of these machines in the world. Japan's approval has a major impact on Tokyo Electron, which generates 25% of its revenue through customers in China.