Japan’s Unforeseen Chip Dilemma: Once Firmly Supporting the US, Now Abandoned by China and America
Recent developments indicate that Apple is working on its own CMOS technology, and Chinese smartphone companies are making progress in domestic CMOS development. This, coupled with the decline in demand for memory chips, is expected to accelerate the decline of Japan’s chip industry. Japan’s compliance with US directives, including restrictions on chip equipment exports to China, has resulted in a decline in Japan’s chip exports and an 11-month consecutive decline in overall exports. Japan’s overreliance on the US has not been reciprocated, leading to a rapid decline in its lithography industry. Japan’s share of the global lithography market is now less than 40%. Japan’s chip industry, once dominant with 50% global market share, has rapidly declined to 10% due to US suppression. Apple’s move to develop its own CMOS chips means abandoning suppliers like Sony. China has developed domestic storage chips, reducing reliance on Japanese companies like Kioxia. Chinese smartphone manufacturers have also developed their own high-end CMOS chips, reducing purchases from Sony. Japan’s restrictions on chip equipment and materials to China have backfired, as China has made significant breakthroughs in its chip industry chain and obtained advanced lithography machines from ASML. Japan’s chip industry has suffered losses by blindly following the US and offending Chinese enterprises, while American companies accelerate their abandonment of Japanese chips. The Japanese chip industry is likely regretting its choices and losses from both sides.
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