U.S. President Joe Biden’s administration plans to pressure the Netherlands next week to stop its top chipmaking equipment maker ASML from supplying some of China’s tools, two people familiar with the matter said, as the United States relies on allies to stymie Beijing’s tech industry .
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U.S. President Joe Biden’s administration plans to pressure the Netherlands next week to stop its top chipmaking equipment maker ASML from supplying some of China’s tools, two people familiar with the matter said, as the United States relies on allies to stymie Beijing’s tech industry .
U.S. export policy chief Alan Estevez is scheduled to meet in the Netherlands next Monday with Dutch government officials and ASML People familiar with the matter said the purpose was to discuss service contracts.
As part of the discussions, Washington may also seek to add Chinese chipmakers to a list that is prohibited from receiving Dutch equipment, a person familiar with the matter said.
The Dutch Foreign Ministry confirmed the upcoming meeting but did not elaborate on the topics on the agenda.
“The Netherlands always has good discussions with our partners. Monday’s meeting of officials was an example of this,” the ministry told Reuters.
The Chinese Embassy in Washington said Beijing opposed the United States’ “overstretching” of its national security concept and using “pretexts to coerce other countries into joining a technological blockade against China.”
The U.S. Department of Commerce and ASML, whose shares fell briefly after the news broke, declined to comment.
The meeting was Washington’s latest move to persuade allies to join in a further U.S. crackdown on Beijing’s ability to produce cutting-edge chips.
Last year, sanctioned Chinese telecoms giant Huawei shocked the world by launching a new phone powered by advanced chips. The Huawei Mate 60 Pro is seen as a symbol of China’s technological renaissance, despite Washington’s ongoing efforts to undermine China’s ability to produce advanced semiconductors.
Chip-related exports to China are vital to its economy. Chinese President Xi Jinping complained to Biden this week about U.S. efforts to block certain U.S. technologies, including advanced semiconductors, saying it was hindering China’s development.
Service limitations on ASML machines can be particularly painful given that large and expensive tools require ongoing maintenance. In terms of sales last year, China is ASML’s second largest market (29%), second only to Taiwan.
Last year, Japan and the Netherlands joined the United States in banning Chinese access to certain chipmaking technologies for national security reasons. The Dutch government has begun restricting the use of certain deep ultraviolet (DUV) equipment by Chinese customers and partially revoked a license, affecting a small number of Chinese customers, according to ASML.
But the Dutch restrictions fall short of those in the United States, which bans U.S. companies from servicing equipment in advanced Chinese factories.Estevez has public expression The United States is asking allies to prevent local companies from supplying certain chipmaking tools to Chinese customers.
“We are working with our allies to determine what is important to serve and what is not important to serve,” Estevez said. stated at an export control meeting last week.
In October, the United States introduced regulations Keep more ASML DUV machines from certain Chinese chip factories because the U.S. parts in those tools give Washington the power to regulate their overseas exports. Officials are likely to raise the issue of expanding the list of Chinese factories at a meeting on Monday, one of the sources said.
Last week, Dutch Prime Minister Mark Rutte met Chinese President Xi Jinping at a summit in Beijing. Xi Jinping warned against erecting trade barriers.
Rutte said the Dutch restrictions were aimed at minimizing disruption to business.
However, Rutte said China’s support for Russia, which the Netherlands views as its biggest national security threat, was a major obstacle to relations. This signal indicates that exports of goods with potential military applications to China will be scrutinized. Rutte is a popular candidate to become the next secretary-general of NATO.
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