Japanese chip equipment manufacturer Tokyo Electron will not supply to Chinese customers blacklisted by the United States, an anonymous TEL executive told Reuters. “We would not do business with Chinese clients with whom Applied Materials and Lam Research are barred from doing business,” the source said, acknowledging that Japanese companies trying to take advantage of the ban by increasing market share in China would probably result in a US backlash.
TEL’s decision shows that non-US companies are feeling pressure to honor the American blacklist, even if they aren’t required by law. Previously, Japanese-owned ARM severed relations with Huawei. TSMC, however, will continue Chinese shipments. ASML so far also indicated it would continue doing business in China.