Japan sees sharp fall in critical mineral and semiconductor equipment exports to China

Exports of several critical minerals from China to Japan were at zero or unusually low levels in May, including tungsten, dysprosium and terbium, after a political dispute sparked by Japanese comments on Taiwan. The downturn follows tightened Chinese controls on dual‑use items in January and reflects Japan’s search for alternative supplies, alongside the G7’s pledge to cut reliance on single‑source rare‑earths.

Japan’s semiconductor equipment sector is also feeling the impact of export restrictions. Sales to China fell about 10% in the latest quarter, with Tokyo Electron’s China revenue dropping from ¥279.4 billion to ¥175.5 billion and its share of total sales slipping to 31.8%. Other makers such as SCREEN Holdings, Advantest and Nikon reported similar declines after Japan imposed controls on 23 categories of chip‑making equipment in July 2023, aligned with U.S. and Dutch measures. The companies are adjusting forecasts while counting on AI‑driven demand to offset the loss.