The U.S. has recently implemented unprecedented steps to control semiconductor exports to China in an attempt to stop the world’s second-largest economy from getting ahead in the tech race, with Washington also calling on allies, including Japan, to follow suit.

The Japanese government has yet to clarify its stance, but if Tokyo were to go along with Washington, it’s unlikely that the domestic chip industry would manage to remain unscathed, industry observers said.

They added that the impact on chip equipment- and material-makers would be more significant than on chipmakers, as Japan's powerful global players are concentrated in those areas.