Beijing warns Japan of retaliation for possible new chip curbs, Bloomberg says

Beijing has threatened Japan with severe economic retaliation if Japan further restricts sales and servicing of chipmaking equipment to Chinese firms, Bloomberg’s Jenny Leonard, Mackenzie Hawkins, and Takashi Mochizuki report. According to people familiar with the matter, senior Chinese officials have repeatedly outlined that position in recent meetings with their Japanese counterparts. Toyota (TM) privately told officials in Tokyo that one specific fear is that Beijing could react to new semiconductor controls by cutting Japan’s access to critical minerals that are essential for automotive production, according to the people. Toyota is “deeply” involved in the country’s chip policy, partly reflected by the fact that it has invested in a new chip campus being built by TSMC (TSM), one of the people says. Other publicly traded companies in the space include Advanced Micro Devices (AMD), Intel (INTC), Qualcomm (QCOM), NVIDIA (NVDA), Marvel (MRVL), Texas Instruments (TXN), Micron (MU), Microchip (MCHP).