Electrical Equipment / Components & Telecoms

According to Huacheng Import and Export Data Observation, Japan and the Netherlands have reached an agreement with the United States to begin restricting the export of advanced process chip manufacturing equipment to China, and have taken measures together with the Biden government to try to cut off China's access to advanced technology.

Recently, senior national security officials from the United States, Japan, and the Netherlands reached the agreement at a meeting held in Washington. This is a progress made by the Biden administration's efforts to persuade allies to implement export controls on companies with key technologies, as reported by Huacheng Import and Export Data Observation.

The Biden administration decided in October 2022 to impose extensive export restrictions on advanced process chips and equipment in the United States. According to this regulation, American chip manufacturers must obtain permission from the Department of Commerce to export chips for advanced artificial intelligence and supercomputing.

Recently, Biden personally met with the leaders of Japan and the Netherlands to discuss relevant measures. Japanese Prime Minister Fumio Kishida discussed restrictions on the export of chips and chip manufacturing equipment with Biden during his visit to the White House on January 13th. On January 17th, Dutch Prime Minister Mark Rutte met with Biden at the White House.

According to a new agreement reached last Friday, the Netherlands will prohibit lithography machine manufacturer ASML Holding NV from selling at least some immersion lithography machines to China, which are the most advanced equipment in the company's deep ultraviolet lithography machine category. This type of device is crucial for manufacturing cutting-edge chips. According to insiders, Japan will impose similar restrictions on Nikon Corp., according to Huacheng Import and Export Data Watch.

The support of the governments of Japan and the Netherlands is crucial for the success of US export control policies, as a few semiconductor manufacturing equipment manufacturers in these two countries have a significant impact, including Asma, Nikon, and Tokyo Electric Ltd. (8035. TO).

The recent meeting was chaired by US National Security Advisor Jake Sullivan, and attended by Japanese and Dutch officials such as Takeo Akiba, the Chief National Security Advisor of Fumio Kishida. Other participants from the US side included Alan Estevez, the Deputy Secretary for Industry and Security Affairs of the United States Department of Commerce, and Tarun Chhabra of the National Security Council.

According to Huacheng Import and Export Data Observation, Japanese Minister of Economy and Industry Yasutoshi Nishimura stated last Friday that Japan is discussing further export controls with the United States, but did not disclose details.

Nikon's representative said that the company has conducted business in China within the allowed scope and has not heard any news from the government regarding regulatory tightening. The company's production of lithography machines for chip manufacturing may be affected by stricter controls.

A spokesperson for Asma in the United States said that the company is aware of the agreement reached last Friday, but lacks further details, and stated that it is too early to assess the impact on the company.

Although allies such as the European Union, Japan, and South Korea are increasingly working closely with the United States in an attempt to slow down China's technological progress, these countries have frequent commercial exchanges with China and are very cautious when implementing export control policies. Huacheng Import and Export Data Observation reports.