Thread by @pstAsiatech

This is very important piece. A short thread. 🧵
Japan’s proposed semiconductor export controls will cause unnecessary damage
globaltimes.cn/page/202305/12… twitter.com/i/web/status/1…

Wei is one of the most knowledgeable academics n China on the semiconductor industry, and understands the global industry well. He briefs senior leadership, including Xi, on semiconductor related issues. He also participates in many international industry meetings + conferences.

For Wei to speak out here is telling. When Wei comments on Japan’s new export controls, his views are authoritative: “Such decisions by the Japanese government will undoubtedly have a negative impact on global semiconductor industry and backfire on Japan's own domestic industry.”

Wei: “Under the guise of preventing high-end equipment from being used for military purposes, the real intention of the new amendment is clear: Japan will follow the US policy to help it contain and suppress China's semiconductor industry.

Wei: "In fact, restricting equipment exports to China under the pretense of avoiding its military use is very naive, and its real intention is obvious to all.”

Wei: “Once this global industrial chain is disrupted, every large and small enterprise under the current model will face difficulties. If China, one of the most important segments in the global chain, is in trouble, the global industry will also suffer, and the severity of the… twitter.com/i/web/status/1…

Wei: "If Japan restricts its export of advanced semiconductor equipment to China, Japanese companies are bound to repeat the mistake. Therefore, the Japanese government must learn from the past seriously and carefully and thoroughly consider the implications of any new export… twitter.com/i/web/status/1…

Wei: “It is gratifying to see the rapid capacity-building and strong competitiveness of Chinese semiconductor equipment manufacturers, which has exceeded the expectation of most industry insiders. In the development of semiconductor equipment, China enterprises are catching up.” twitter.com/i/web/status/1…

Wei: “The Japanese government could sit down for a careful discussion with the Chinese government to find proper solutions based on mutual benefit. From a perspective of the well-being of all mankind, this could prevent the situation from developing out of control. After all,… twitter.com/i/web/status/1…

Wei will undoubtedly raise these issues during a meeting in a few weeks in Seoul, Korea of the World Semiconductor Council. The meeting will include the semiconductor industry associations of China, Korea, Taiwan, Japan, Europe and the US.

Chinese officials are increasingly frustrated at actions taken by governments in the sector, particularly the #7OctoberSurprise and efforts to enlist countries with key parts of the semiconductor supply chain to restrict Chinese company access to critical inputs

Beijing now believes these efforts are designed to decouple a major portion of China’s semiconductor industry from the global ecosystem. This belief is behind at least some recent actions targeting companies involved in the sector, including due diligence and consulting firms.

The next few months will be critical for the industry, and for governments attempting to determine what and how to restrict some of their country’s most dynamic and innovative companies from supplying a major and critical market for the industry overall.