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In a bid to curtail China’s access to semiconductor technology, the US government is ramping up its efforts to persuade allies to impose stricter restrictions. The Biden administration is reportedly exerting pressure on countries like the Netherlands, Germany, South Korea, and Japan to enhance controls on chip exports to China, with the aim of closing existing loopholes in export regulations.
Despite facing resistance from some of these nations, the US has made specific requests to the Netherlands, including preventing ASML, a Dutch chip equipment supplier, from servicing production equipment supplied to China before the imposition of restrictions. Additionally, the US has urged Japan to limit the export of specialized manufacturing chemicals.
While countries such as Japan and the Netherlands, which are major hubs for semiconductor manufacturing equipment, have agreed to implement export restrictions by 2023, they are cautious about implementing further measures without first assessing the impact of current restrictions.
The US is also looking to expand its export blockade, with Germany and South Korea among its next targets. Bloomberg reports that the US is eager to finalize agreements with additional countries before the G7 Summit scheduled for June.
Last month, the US announced a $5 billion investment in semiconductor-related research and development, highlighting its commitment to strengthening its domestic semiconductor industry and maintaining a competitive edge in the global tech arena.
The move comes amidst growing concerns in the US and other Western countries about China’s efforts to advance its semiconductor industry, which is seen as a strategic priority by Beijing. By tightening export controls, the US hopes to hinder China’s ability to develop its domestic chip manufacturing capabilities, thereby safeguarding its own technological advantage in the semiconductor sector.
The US government’s efforts to block China’s access to semiconductor technology are part of a broader strategy to address what it sees as unfair trade practices and national security threats posed by Beijing’s industrial policies. However, these efforts are also raising concerns among US allies, who fear that overly restrictive export controls could harm global supply chains and disrupt the flow of critical technologies.