Mon. Jul 22nd, 2024

The US is preparing to set up a “blockade” against China to prevent the production of advanced chips

Natasha Kumar By Natasha Kumar Jun20,2024

The US is preparing to impose a

Washington is increasing pressure on the Netherlands and Japan to ban ASML and Tokyo Electron from repairing equipment previously sold to China .

The US is seeking support from allies to increase pressure on China, which is making efforts to produce high-bandwidth memory chips. Bloomberg writes about it.

China continues to use the equipment of the Dutch company ASML and the Japanese manufacturer Tokyo Electron Ltd. to create high-bandwidth memory chips (HBM chips). It is known that US sanctions have not stopped such Chinese firms as Wuhan Xinxin Semiconductor Manufacturing Co., Huawei Technologies and Changxin Memory Technologies Inc.

The administration of US President Joe Biden has tried for years to limit China's ability to buy and produce advanced semiconductors, arguing that such steps are necessary to ensure national security. However, the results have been quite mixed, with Huawei and other companies making significant strides.

The United States is the most important player in the global semiconductor equipment industry, but it is far from the only country that matters. Japan and the Netherlands are also key suppliers. According to Gregory Allen, director of the Wadhwani Center for AI and Advanced Technologies at the Center for Strategic and International Studies, the Netherlands and Japan have restrictions on equipment exports to China, but not on services, and are vulnerable to sanctions.

Alan Estevez, the US deputy secretary of commerce, intends to negotiate with the two countries to restrict ASML and Tokyo Electron from servicing and repairing their equipment owned by Chinese companies. The US has already imposed such restrictions on US suppliers of Applied Materials Inc. and LAM Research Corp.

The Dutch and Japanese governments have previously resisted U.S. pressure, sources familiar with the matter said. The two countries are demanding more time to assess the impact of bans on exports of high-end chip-making equipment. They are also waiting for the results of the presidential elections in the USA, which will be held in November. And it is not yet clear how the new Dutch government, led by Geert Wilders, will respond to US demands for tighter restrictions on ASML.

Chinese Foreign Ministry spokesman Lin Jian recently said during a press briefing that his country stands against US efforts to force other countries to suppress China's semiconductor industry. He believes that other countries can make their own decisions and protect their own interests.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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