US presses allies for stronger chip Curbs on China
What's the story
The United States is urging Japan and the Netherlands to broaden their restrictions on semiconductor-related exports to China.
This decision targets not only older-generation chip equipment but also essential chipmaking chemicals.
It comes after the US implemented extensive export controls in October 2022 to hinder China's access to vital semiconductors used in technologies like artificial intelligence, autonomous vehicles, and advanced weaponry.
Plans
Limiting lithography equipment and photoresist
It is believed that the US wants to limit China's access to lithography equipment from companies such as Japan's Nikon and Tokyo Electron.
Critical chipmaking chemicals like photoresist, for which Japanese companies such as Shin-Etsu Chemical are responsible, are also believed to be on Washington's radar.
Meanwhile, the Netherlands, where semiconductor equipment manufacturer ASML is based, has been urged to prevent companies from servicing chipmaking equipment sold to China before the implementation of last year's trade restrictions.
Consequences
Impact of export curbs on global semiconductor industry
The US's call for stricter export restrictions could have a significant impact on the global semiconductor industry, potentially disrupting supply chains and affecting businesses that depend on Chinese markets for revenue.
With tensions between the US and China on the rise, the consequences of these export limitations on both nations' economies and the worldwide tech scene are still uncertain.