June 30, 2023
The United States and the Netherlands are set to further restrict sales of chipmaking equipment to China this summer.
The Dutch government plans to announce new regulations that will require a license for the export of certain chipmaking equipment, including deep ultraviolet (DUV) machines from ASML, the world’s leading chip equipment maker.
The U.S. is also expected to impose similar restrictions on the export of DUV machines to China, as well as other types of chipmaking equipment. DUV machines are used to make a wide range of chips, including those used in smartphones, computers, and cars. Without access to these machines, China will be forced to rely on imports for these chips or develop its own technology from scratch.
The restrictions are being imposed on national security grounds, as the U.S. and its allies are concerned that China could use advanced chipmaking technology to develop military applications. China has been investing heavily in its semiconductor industry in recent years and is now the world’s largest chip consumer. However, it still relies on imports for many of its most advanced chips.
The new restrictions are likely to have a significant impact on China’s chipmaking industry. The restrictions are also likely to increase tensions between the U.S. and China. China has already condemned the U.S.’s previous export restrictions and is likely to do the same with the new measures. The restrictions could also lead to retaliation from China, which could target U.S. companies or industries.
The sources for this piece include an article in Reuters.
