July 16 (Reuters) - The U.S., facing pushback to its
chip crackdown on China, has told its allies it is considering
using the most severe trade restrictions available if companies
continue giving the country access to advanced semiconductor
technology, Bloomberg News reported on Tuesday.
These measures would be applied to companies such as Tokyo
Electron ( TOELF ) and ASML Holding NV, the report
added, citing people familiar with the discussions.
The U.S. is weighing whether to impose a measure called the
foreign direct product rule, or FDPR, the report said.
The provision, called the Foreign Direct Product Rule, or
FDPR, was first introduced in 1959 to control trading of U.S.
technologies.
It essentially says that if a product was made using
American technology, the U.S. government has the power to stop
it from being sold - including products made in a foreign
country.
The U.S. is presenting the idea to officials in Tokyo and
the Hague as an increasingly likely outcome if the countries
don't tighten their own China measures, the Bloomberg report
added.
ASML declined to comment on the discussions, and Electron
said it wasn't in a position to comment on "geopolitical
issues", Bloomberg reported.
Tokyo Electron ( TOELF ), ASML Holding, and the U.S. Department of
Commerce did not immediately respond to Reuters' requests for
comment.
(Reporting by Surbhi Misra in Bengaluru; Editing by Janane
Venkatraman and Rashmi Aich
)