Japan and the Netherlands join the US in chip restrictions for China

Japan and the Netherlands, together with the United States, will impose chip bans on China, Bloomberg reports. The aim is to “undermine Beijing’s ambition to build its own domestic chip capabilities,” said the outlet’s source.

Dutch company ASML Holding HV will be prevented from transferring deep ultraviolet lithography machines used for chip manufacturing, and similar restrictions will be imposed on Japan’s Nikon Corp.

Japan and the Netherlands join the US in chip restrictions for China

The joint effort is an extension of US President Joe Biden’s policy of limiting China’s ability to manufacture and develop its own semiconductors, which are used for AI and machine learning in the military, but will also have implications for the mobile technology industry.

US equipment manufacturers complained that preventing only US companies from trading with China hurts their competitiveness, leading the Dutch and Japanese governments to rethink how ASML, in addition to Tokyo Electron, exports such machines.

Japan and the Netherlands join the US in chip restrictions for China

Peter Wennink, CEO of ASML, warned that US-led controls on exports of lithography machines would eventually push China to develop its own advanced technology. “It takes time, but eventually they will get there,” said the director.

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