financetom
Technology
financetom
/
Technology
/
US pushes Netherlands, Japan to further restrict chipmaking equipment to China
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US pushes Netherlands, Japan to further restrict chipmaking equipment to China
Jun 19, 2024 4:56 AM

(Reuters) -A U.S. official was heading to Japan after meeting with the Dutch government to try to push allies to further restrict 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 trying to build on a 2023 agreement between the three countries to keep chipmaking equipment from China that could help to modernise its military.

In a response, Chinese foreign ministry spokesperson Lin Jian said China was opposed to the U.S. engaging in confrontation and "coercing other countries and suppressing China's semiconductor industry".

"This behaviour has seriously hindered the development of the global semiconductor industry and will eventually backfire," Lin told a press briefing in Beijing.

A spokesperson for the Dutch foreign ministry confirmed a meeting had taken place in the Netherlands on Monday.

Japan's industry ministry said it has various exchanges with the United States but would not comment on diplomatic interactions.

The U.S. first imposed restrictions in 2022 on shipments of advanced chips and chipmaking equipment to China from companies including California-based Nvidia and Lam Research.

Last July, to align with U.S. policy, Japan, home to chip equipment makers Nikon Corp and Tokyo Electron, 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 biggest chip equipment maker by sales and market capitalisation.

Washington is 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 says it wants to control additional chipmaking equipment, the person said, asking not to be named because they were not authorised to speak publicly on the issue.

A spokesperson for the U.S. Commerce Department declined comment.

The Dutch Foreign Ministry said Monday's meeting was 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," the spokesperson said.

U.S. officials also visited the Netherlands in April to try to stop ASML from servicing certain equipment in China. Under U.S. rules, U.S. firms are barred from servicing equipment at advanced Chinese factories.

But the ASML servicing contracts are still in place, the person said, adding the Dutch government does not have the extraterritorial scope to cut them off.

ASML said in April it expected 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.

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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Decoding Arista Networks's Options Activity: What's the Big Picture?
Decoding Arista Networks's Options Activity: What's the Big Picture?
Aug 8, 2024
Deep-pocketed investors have adopted a bullish approach towards Arista Networks ( ANET ) , and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in ANET usually suggests something big is about to happen. We gleaned this information...
Australian TV company Foxtel put up for sale by News Corp
Australian TV company Foxtel put up for sale by News Corp
Aug 8, 2024
Aug 8 (Reuters) - Australian pay television company Foxtel, controlled by the Murdoch family and partly by local telecom firm Telstra ( TTRAF ), has been put up for sale post third-party interest and a strategic review, owner News Corp ( NWSA ) said on Thursday. ...
Delta rejects CrowdStrike criticism, sees $500 mln hit from cyber outage
Delta rejects CrowdStrike criticism, sees $500 mln hit from cyber outage
Aug 8, 2024
CHICAGO/WASHINGTON Aug 8 (Reuters) - Delta Air Lines ( DAL ) said on Thursday it is pursuing legal claims against CrowdStrike ( CRWD ) and Microsoft ( MSFT ) after a global outage last month disrupted travel plans of 1.3 million customers and associated costs of at least $500 million. A software update last month by global cybersecurity firm CrowdStrike...
Sega's Q1 2024: $102.5M In Video Game Sales Stand Out, Despite Revenue Drop
Sega's Q1 2024: $102.5M In Video Game Sales Stand Out, Despite Revenue Drop
Aug 8, 2024
Sega Sammy Holdings Inc ( SGAMF ) reported its financial results for the first quarter of the 2024 fiscal year, revealing a mixed performance with notable strengths in its video game segment, despite an overall decline in net sales. The results for the three months ended June 30, 2024, indicate a company navigating challenges but finding success in its core...
Copyright 2023-2026 - www.financetom.com All Rights Reserved