Japan and the Netherlands join the United States in chip restrictions on China

Japan and the Netherlands will join the United States in imposing chip bans on China, Bloomberg reports. The aim is to “undermine Beijing’s ambition to build its own domestic chip capabilities”, according to the outlet’s sources.

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

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

US equipment manufacturers have complained that restricting only US companies from trading with China affects their competitiveness, leading the Dutch and Japanese governments to reconsider how ASML, alongside Tokyo Electron, export these machines.

Peter Wennink, CEO of ASML, warned that US control over the export of lithography machines would ultimately push China to develop its own advanced technology. “It will take time, but eventually they will get there,” the exec said.

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