Semiconductors

Dutch Officials Head to US For Possible China Chip Curbs Deal

 

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.

 

Also on AF: ASML’s China Exports ‘Unchanged’ Amid Rising Chip Curbs Worry

 

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.

But it has not yet convinced key allies, most notably the Netherlands and Japan, to implement similar equipment curbs seen as essential to making the restrictions effective.

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

 

 

Also read:

ASML’s Taiwan Expansion Signals Chip Sector’s Next Big Leap

Netherlands to Consult Japan, Taiwan on US-China Chip Curbs

US Chipmakers Selling Advanced Chips to China: ASML Chief

Infographic: ASML in the Centre of the US-China Chip War

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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