Japan and Netherlands are joining the US in chip restrictions on China

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

The Dutch company ASML Holding HV will be prevented from transferring deep ultraviolet lithography machines used for chip manufacturing, and similar restrictions will be imposed on the Japanese Nikon Corp.

The joint effort is an expansion on 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 as well.

US equipment makers complained that preventing only American companies from trading with China is affecting their competitiveness, which lead to Dutch and Japanese government reconsidering how ASML, alongside Tokyo Electron, are exporting such machinery.

Peter Wennink, CEO at ASML, warned that US-led control on the export of lithography machinery would eventually push China to develop its own advanced tech. “That will take time, but eventually, they’ll get there”, said the executive.

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