Japan urged to strengthen chip curbs on China, Bloomberg reports

In a letter, key U.S. lawmakers urged Japan to strengthen restrictions on sales of chipmaking equipment to China or risk facing U.S. curbs on Japanese companies, Bloomberg’s Mackenzie Hawkins reported on Friday. The lawmakers dismissed arguments that restrictions have had a material negative impact on chip equipment companies like Tokyo Electron (TOELY), and emphasized the importance of cooperation between the U.S., Japan and the Netherlands in slowing China’s chip ambitions. The letter cited increases in the stock prices of Tokyo Electron, ASML (ASML), Lam Research (LRCX), and Applied Materials (AMAT), as well as chip subsidy programs from the U.S. and EU, as evidence of the limited impact of export controls.