Dutch and US officials will meet in Washington on Friday to discuss potential new curbs on exporting chip-manufacturing gear to China.
A deal may be possible by the end of the month, two sources familiar with the matter have told Reuters.
If the two sides can agree on the details, a deal could be announced as soon as Friday, one of the sources said. It was also possible that any deal reached might not be announced immediately, the source added.
The second person familiar with the matter said a central concern for negotiators is that even small supply chain changes could reignite a global chip shortage that has eased in recent months but created havoc in supply chains over the past two years.
Dutch officials are also adamant the controls be tailored to national security concerns and not give the appearance that the United States is trying to favour its own chipmaking industry, the second source said.
The Biden administration in October imposed wide-ranging export controls, including curbs tightly restricting Chinese access to US chipmaking technology. The move was part of an effort to slow Beijing’s technological and military advances.
The Netherlands is home to ASML, the world’s leading maker of lithography equipment, which is critical for making semiconductors.
In a press conference with reporters after ASML reported fourth quarter earnings on Wednesday, CEO Peter Wennink said an export control deal may be close and that his company does not participate in the political talks.
He added that while a deal may be announced soon, it is less clear whether the technical details of any regulations have been resolved.
- Reuters, with additional editing by Vishakha Saxena