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US pushing Netherlands, Japan to restrict more chipmaking equipment to China, source says
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US pushing Netherlands, Japan to restrict more chipmaking equipment to China, source says
Jun 19, 2024 1:42 AM

June 18 (Reuters) - A U.S. official was headed to Japan

after meeting with the Dutch government in an effort to push

allies to further crack down on China's ability to produce

cutting-edge semiconductors, a person familiar with the matter

told Reuters on Tuesday.

Alan Estevez, the U.S. export policy chief, was again trying

to build on a 2023 agreement between the three countries to keep

chipmaking equipment from China that could modernize its

military.

The U.S. first imposed sweeping restrictions in 2022 on

shipments of advanced chips and chipmaking equipment to China

from the likes of California-based Nvidia ( NVDA ) and Lam

Research ( LRCX ).

Last July, to align with U.S. policy, Japan, home to chip

equipment makers Nikon Corp ( NINOF ) and Tokyo Electron ( TOELF )

, curbed exports of 23 types of equipment, from machines

that deposit films on silicon wafers to devices that etch out

the microscopic circuits.

Then the Dutch government began to regulate

Netherlands-based ASML's deep ultra violet (DUV)

semiconductor equipment to China and the U.S. imposed

restrictions on additional DUV machines to a handful of Chinese

factories, claiming jurisdiction because ASML's systems contain

U.S. parts and components. ASML is the world's top chip

equipment maker.

Washington is now talking to allies about adding 11 more

Chinese chipmaking factories to a restricted list, the person

said. There are currently five factories on the list, the person

said, including SMIC, China's largest chipmaker.

The U.S. also is saying it wants to control additional

chipmaking equipment, the person said.

A spokesperson for the U.S. Commerce Department declined

comment. A spokesperson for the Dutch Foreign Ministry confirmed

a meeting took place on Monday as part of ongoing talks on

export policy and security between the U.S. and the Netherlands.

The Netherlands "always has continual contact with our

allies," he said.

U.S. officials also visited the Netherlands in April in a

push to stop ASML from servicing certain equipment in China.

Under U.S. rules, American firms are barred from servicing

equipment at advanced Chinese factories.

But the ASML servicing contracts are still in place, the

person said, explaining that the Dutch government does not have

the extraterratorial scope to cut them off.

ASML said in April it expects to be able to service most of

the billions of euros worth of equipment it has sold to China,

though it cannot use spare parts from the U.S. that would fall

under U.S. restrictions. It did not have immediate comment on

Wednesday.

The Chinese Embassy in Washington did not immediately

respond to a request for comment.

Sanctioned Chinese telecoms giant Huawei last year came

out with a phone powered by a sophisticated chip. The Huawei

Mate 60 Pro was seen as a symbol of the China's technological

resurgence despite Washington's efforts.

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