Japan and the Netherlands should join the US in blocking the sale of chip machines to China

Update (01/27/23) – JP

Japan and the Netherlands must co-impose with the United States Bans against shipments of chip machines to China. Bloomberg released the information after consulting more than one person familiar with the matter and involved in the negotiations.

According to these sources, the White House wants to “undermine Beijing’s ability to build its own chip industry.” Along with that, ASML should be the holding company Ban on sale of UV lithography machines For Chinese manufacturers.

Additionally, Nikon Corp should also stop shipping equipment to China.

Commenting on the matter, ASML’s CEO Peter Wennink issued an important warning. According to him, this series of sanctions implemented by the United States will lead to China makes its own chip machines.

As a result, ASML and other companies in the sector may acquire Chinese competitors in the medium term, which is bad for business.

It will take some time, but eventually the Chinese will get there.

Original text (01/13/23)

The United States should begin to implement a series of measures that it is trying to implement crippling China’s technological prowess. For this, the country will need the support of the Netherlands and Japan, but sources indicate that negotiations will be more difficult than imagined.

According to those who know the matter, Neither country wants to impose “immediate” sanctions against China. Because ASML and Tokyo Electron — the biggest vendors of chip-making machines — aren’t ready to lose a market as big as China.

Recently, the ASML also called it “hypocrisy”. The White House’s plan found that some American companies continued to supply equipment to the Chinese.

The next meeting between US President Joe Biden and Japanese Prime Minister Fumio Kishida and Netherlands Prime Minister Mark Rutte will take place on Tuesday (17).

Still, even Biden’s closest aides don’t believe the Netherlands and Japan promise much.

These visits do not constitute immediate announcements and are part of our ongoing conversations about these issues.

And with that, one The deal is still far from officialEven with US Department of Commerce He promised to resolve everything “in a short time”.

While the US and its allies continue to debate the matter, it’s worth remembering that Chinese chipmakers may continue to buy ASML equipment.