China: relations with the USA, turned towards Japan

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China, which turned its face to the other side for semiconductor production as a result of US sanctions, is looking for a new way out. Many companies, both the US and the Chinese, were hurt by tensions between the two countries. Considering the difficulties experienced in semiconductor stocks in recent months, especially chip manufacturers proved more harmful than this process. However, the country that benefited from this whole process was Japan.

Globally, the chip shortage will continue until the end of 2022, according to expert analysis.

China turns to Japan for semiconductor production

According to a report published by Nikkei Asia, Chinese companies have turned to Japan. While Chinese companies have benefited from the second-hand market in Japan, prices in this market have increased by 20 percent. The chip shortage seen around the world has caused many companies to turn to second-hand products.

According to Mitsubishi UFJ Lease & Finance, 90 percent of used machinery goes to China. It is stated that the machines, which were worthless a few years ago, are now sold for 100 million yen (940 thousand dollars). Most of these machines are used on production lines in factories.

China, which has struggled with semiconductor manufacturing, faces even greater challenges. The US government imposed new sanctions on Semiconductor Manufacturing International Corporation (SMIC) in September. SMIC is China’s largest chip maker. According to the statement, the Chinese manufacturer is on the same list as Huawei. US companies that want to sell certain products to SMIC must secure their licenses.

The ultimate goal is to reduce the Chinese semiconductor industry’s dependence on US imports. Thus, it can be ensured that sanctions have less effect.