Japan and the Netherlands join the United States in imposing a chip ban on China. Bloomberg It was revealed in the report. The goal is to “reduce Beijing’s desire to build its own domestic chip capacity,” people familiar with the situation said.
Dutch company ASML Holding HV will be banned from transferring deep ultraviolet lithography machines used in chip manufacturing, and similar restrictions will be imposed on Japan’s Nikon Corp.
The joint effort is an extension of US President Joe Biden’s agenda to limit China’s ability to manufacture and manufacture its own semiconductors, which will also affect the mobile technology industry as well as machine learning for AI and the military.
U.S. toolmakers have argued that restricting American companies from doing business with China is affecting the competitive balance, prompting the Dutch and Japanese governments to reconsider exporting such machinery to ASML, along with Tokyo Electron.
The moves had little impact on the stock market but Shanghai Semiconductor Manufacturing International, the largest chip maker in mainland China. Hua Hong Semiconductor also felt a slight decline in shares and the offshore yuan slipped 0.1 percent.
SML CEO Peter Wennick warned that US-led controls on exports of lithography machinery would push China to develop its own advanced gear. “It’s going to take time, but eventually, you’ll get there,” the executive said.
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