Beautiful Virgin Islands

Saturday, Sep 07, 2024

Netherlands eyes curbs on selling chipmaking gear to China in deal with US

Netherlands eyes curbs on selling chipmaking gear to China in deal with US

The export limits could bar the sale of equipment capable of making 14-nanometre chips or those that are more advanced.
Dutch officials are planning new controls on exports of chipmaking equipment to China, according to people familiar with the matter, potentially aligning their trade rules with US efforts to restrict Beijing’s access to high-end technology.

An agreement on the Dutch curbs could come as soon as next month, according to the people, who asked not to be identified given the sensitivity of the discussions, adding that negotiations are ongoing and no final decision has been made.

The Dutch foreign trade ministry and the White House’s National Security Council declined to comment.

The Dutch move, which would essentially codify and potentially expand its unofficial ban on some technology sales to China, is a step toward bulking up US efforts to limit Beijing’s chipmaking and military ambitions.

The Netherlands and Japan are the world’s top suppliers, outside the US, of machinery and know-how needed to make advanced semiconductors, but Washington is yet to get those allies fully on board.

The new export limits under consideration by the Netherlands could bar the sale of equipment capable of making chips designated as 14 nanometres or those that are more advanced, according to the people, using a reference to the industry standard for measuring semiconductor technology. That move may put Dutch regulations at least partly in line with US restrictions announced on October 7.

The restrictions could hit Dutch firm ASML Holding NV, which is one the world’s most important suppliers of machines necessary to make advanced semiconductors and has been caught up in Washington’s efforts to limit Beijing’s ability to produce its own high-end chips. China accounted for about 15 per cent of the firm’s revenue last year, according to its latest annual report.

It’s unclear yet what the new restrictions mean for ASML’s sales to China. Officials are still discussing the details, but the step may effectively stop exports of the company’s immersion lithography machines, its second-most advanced gear, for Chinese clients who use them in combination with tools from other suppliers to manufacture 14-nanometre chips or those that are more advanced.

Washington has some leverage over the Netherlands as ASML uses US-made components. Since early October, American officials have threatened that if allies do not comply with the new export-control measures, they could ban sale of foreign equipment that contains even the smallest amount of US technologies to China.

Dutch officials are inclined to collaborate with the US on restricting China’s access to chip technologies because they share similar national-security concerns, the people said, echoing remarks by US officials including Commerce Secretary Gina Raimondo, whose department leads Washington’s efforts on export controls.

Senior US National Security Council official Tarun Chhabra and Under Secretary of Commerce for Industry and Security Alan Estevez travelled to the Netherlands in late November to discuss the export-control issues with Dutch officials, according to the people.

Dutch Prime Minister Mark Rutte said last month that the Netherlands is coordinating on the issue with the US and Japan, as well as South Korea, another major semiconductor producer.

Estevez said at an event in Washington on Tuesday that the US discussions with allies have been “very, very positive,” although calling them “a work in progress.”

“I don’t expect any other country to say ‘Hey, we’re going to come in and let the United States dictate our policies and our plans.’ However, these countries, our allies, share our values. They share the same threats that we see” from China, he said.

The Commerce Department’s Bureau of Industry and Security, which Estevez leads, declined to comment further.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Huawei Poised for Major AI Chip Unveil at Shenzhen Event
Nvidia’s AI chips are cheaper to rent in China than US
China ends tariffs on all goods exported to China from the poorest countries in the world it has diplomatic ties with, including 33 African nations
Blinken May Not Seek Another Term Due To Family Priorities
Labour Pushes for Special Tribunal Against Russia for Ukraine Invasion
Oil Companies to Contest Judicial Review of North Sea Projects
Ed Balls Urges Keir Starmer and Rachel Reeves to Address Winter Fuel Payments Controversy
British Army Major General Dismissed for Unwanted Advances
Campaigners Urge Bold Actions to Combat Rising Heart Disease in UK
UK Requires One Trillion Pounds Investment for Economic Growth
Plan to House Asylum Seekers at Former Dambusters Home Dropped
UK Drops Indecent Assault Charges Against Harvey Weinstein
Return of Brazilian Artworks to Bahia
UK Signs Landmark International AI Treaty
Demand for Justice After Death of Ugandan Runner Set on Fire
Ukraine's Major Government Reshuffle: Andrii Sybiha Appointed New Foreign Minister
North Korea Executes Officials Over Flood Response
French Woman Testifies in Landmark Rape Trial
Sicily Yacht Disaster: Fatal Asphyxiation Claimed More Lives
Michel Barnier Appointed as Prime Minister of France
The art technique of Grandma Mei Ling, age 82
Mongolia Refuses to Arrest Putin Despite ICC Warrant
UK State Pension to Increase by Over £400 Annually
Amazon Announces 10% Pay Increase for UK Workers
Grenfell Tower Fire Inquiry Demands Swift Justice
French Police Clear Migrant Camp Near Calais
New Law Proposes Jail Time for Covering Up Sewage Dumping in England and Wales
John Swinney's Government Programme Faces Criticism in Scotland
France Pilots Mobile Phone Ban in Schools
Priti Patel Eliminated in First Round of Tory Leadership Race
And Justice for ALL: Elon Musk threatens to go after Brazilian government assets
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
US Charges Hamas Leaders With Terrorism Over October 7 Attack on Israel
Russian Missile Strike Kills 49 in Poltava, Ukraine
Major Cabinet Resignations in Ukraine
Tory Leadership Candidates Criticize Rivals' Promises to Leave ECHR
Campaigners Propose Pay-Per-Mile Charge for UK Electric Cars
Labour Urged to Shift Asylum Policy Rhetoric
Hossein Shamkhani: The Rise of an Oil Tycoon
Putin Defies ICC Arrest Warrant with Mongolia Visit
Frenchman On Trial for Decade-long Abuse of Drugged Wife
The British bus driver explains to usual suspects that they cannot travel without a ticket. Education is important.
Irish Police Arrest Enoch Burke, the teacher who refuses to endorse and affirm transgender ideology
US Soldier Attacked in Turkey
Switzerland Urged to Reconsider Its 500-Year Neutrality
AfD's Historic Victory in Thuringia State Election, Germany
British Woman Sets Record for Fastest Lake Geneva Swim
Rising Influence of AfD Highlights Growing East-West Divide in Germany
Spanish Police Arrest Three for Ibiza Luxury Home Robberies
AfD Secures Historic Victory in East German State Elections
×