A U.S. diplomat, seeking to exert pressure on allies to tighten limitations on China’s ability to create semiconductors, met with the Dutch government on Tuesday.
A U.S. diplomat, seeking to exert pressure on allies to tighten limitations on China’s ability to create cutting-edge semiconductors, met with the Dutch government on Tuesday and was en route to Japan, according to a person familiar with the matter.
The head of U.S. export strategy, Alan Estevez, was attempting once more to advance a 2023 deal among the three nations to retain chip manufacturing technology from China that may be used to upgrade its armed forces.
In 2022, the United States placed extensive limitations on the export of sophisticated processors and chip-making machinery to China, targeting companies such as California-based Nvidia (NVDA.O) and Lam Research (LRCX.O).
In July of last year, Japan, which is home to the chip equipment manufacturers Nikon Corp. (7731.T) and Tokyo Electron (8035.T), restricted the export of 23 different types of equipment, ranging from machines that etch out minuscule circuits to those that deposit coatings on silicon wafers, in order to comply with U.S. policy.
Then, citing jurisdiction because ASML’s systems contain parts and components from the United States, the Dutch government started to regulate Netherlands-based ASML (ASML.AS), opened a new tab for deep ultra violet (DUV) semiconductor equipment to China, and placed restrictions on additional DUV machines in a small number of Chinese factories. The top global manufacturer of semiconductor equipment is ASML.
As per the individual, Washington is currently in discussions with allies over the addition of 11 more Chinese semiconductor firms to a restricted list. The individual stated that SMIC, the biggest chip manufacturer in China, is one of the five factories that are now on the list.
According to the source, the U.S. is also claiming it wants to be in charge of more semiconductor manufacturing machinery.
A U.S. Commerce Department spokesman declined to comment. As part of ongoing discussions between the United States and the Netherlands on export policy and security, a representative for the Dutch Foreign Ministry confirmed that a meeting was held on Monday.
“The Netherlands maintains constant communication with our allies,” he declared.
In April, U.S. officials traveled to the Netherlands in an effort to prevent ASML from providing maintenance on specific equipment in China. U.S. regulations prohibit American companies from providing equipment maintenance at sophisticated Chinese manufacturing.
However, the individual clarified that the ASML maintenance contracts remain in effect, adding that the Dutch government lacks the extraterritorial authority to terminate them.
Although it is unable to use U.S.-sourced spare parts that would be subject to limitations, ASML stated in April that it anticipates being able to service the majority of the equipment valued at billions of euros that it has sold to China. On Wednesday, there was no quick comment.
Banned Last year, the Chinese telecom behemoth Huawei unveiled a phone that ran on advanced technology. Despite Washington’s efforts, the Huawei Mate 60 Pro was regarded as a symbol of China’s technological comeback.
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