Japan’s dominance in several critical semiconductor and advanced technology materials has become an increasingly important source of strategic leverage amid intensifying competition with China. Japanese media report that despite Beijing’s ambitions to become a global leader in artificial intelligence, electric vehicles, and advanced communications, China’s technological progress remains constrained by its dependence on foreign suppliers. This vulnerability has been reinforced by the “de-risking” strategies adopted by Japan, the United States, and Europe, which have strengthened supply chain resilience while limiting China’s access to key technologies.
Japan maintains a dominant global position in three indispensable materials used in advanced manufacturing: photoresists, ultra-high-purity hydrogen fluoride, and fluorinated polyimide. Japanese companies control roughly 70–80 percent of the global market for photoresists and ultra-high-purity hydrogen fluoride—both essential for semiconductor fabrication—and nearly 90 percent of the global fluorinated polyimide market, a critical material used in flexible displays for foldable smartphones and electric vehicles.
Experts argue that any Japanese export restrictions on these materials could severely disrupt China’s semiconductor and electronics industries, affecting chipmakers such as SMIC as well as downstream manufacturers including Huawei, Baidu, and display producer BOE. China has also stepped up efforts to acquire advanced technologies through cyber espionage targeting Japanese defense, aerospace, and technology organizations. Japan’s decades-long technological leadership and manufacturing expertise continue to present formidable barriers to China.
Source: Liberty Times, August 7, 2026
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