US Urges Netherlands and Japan to Further Restrict Chipmaking Equipment to China
The United States has urged the Netherlands and Japan to further restrict China's access to advanced chipmaking equipment. China rejects what it sees as US coercion and control of its semiconductor industry. The Dutch government has confirmed a meeting with US officials, while Japan's industry ministry admits discussions with the US.
The United States is stepping up its efforts to persuade its allies, the Netherlands and Japan, to place tighter limitations on China's access to advanced chipmaking technology. Alan Estevez, the US export strategy chief, recently met with the Dutch government and is now travelling to Japan to discuss the problem, according to sources familiar with the situation.
The goal of these conversations is to build on the three countries' 2023 pact, which attempts to prevent China from purchasing chipmaking technology that may potentially improve its military capabilities.
The United States is concerned about China's technical advances and wants to restrict its access to cutting-edge chips. China, on the other hand, has spoken out against what it sees as US coercion and suppression of its chip industry. Lin Jian, a spokesperson for the Chinese foreign ministry, claimed that such behaviour impedes the global semiconductor industry's development and will eventually have a detrimental impact.
The Dutch foreign ministry confirmed that a meeting took place on Monday in the Netherlands, but did not disclose any other information. Japan's industry ministry, on the other hand, admitted having several exchanges with the United States but declined to comment on diplomatic relations. In 2022, the US implemented limitations on the supply of advanced processors and chipmaking equipment to China, harming companies such as Nvidia and Lam Research.
Last year, Japan followed suit, restricting the export of 23 types of chip fabrication equipment. The Dutch government has also imposed a licencing requirement for ASML's semiconductor equipment, limiting its access to Chinese customers beyond January 1, 2024. ASML, the world's largest chip manufacturer, has been at the forefront of these limits.
The United States asserted jurisdiction over ASML's deep ultraviolet (DUV) equipment because they included US parts and components. Washington is already considering with its friends the potential of including other Chinese chipmaking factories on the banned list, including those operated by SMIC, China's largest contract chipmaker. Furthermore, the US is attempting to get control of further chip manufacturing equipment.
The Dutch government has not yet agreed to these requests, but it has not ruled out doing so. ASML, for its part, expects to be able to service the majority of the equipment it has sold to China until the end of 2024, albeit it will be unable to use spare parts from the United States due to current restrictions.
The United States, the Netherlands, and Japan are currently discussing export policy and security. However, with a right-wing Dutch government poised to assume power in July, any adjustments to export limits may be difficult to implement. In the past, China's Huawei thwarted US efforts to limit its access to advanced technology by selling the Huawei Mate 60 Pro, a smartphone with a powerful chip.
The US is urging the Netherlands and Japan to further restrict China's access to advanced chipmaking equipment.
China opposes what it perceives as US coercion and suppression of its semiconductor industry.
The Dutch government has confirmed a meeting with US officials, while Japan's industry ministry acknowledges exchanges with the US.
Source: REUTERS