TOKYO: Japan and the Netherlands will soon agree to join the United States in restricting exports of semiconductor manufacturing equipment to China.
Talks between the countries will conclude soon, with the Netherlands restricting ASML Holding NV from selling machines to China used to make certain types of advanced chips, while Japan would impose similar restrictions on Nikon Corp, reported Bloomberg, citing people close to the matter.A deal between Dutch and US officials could be clinched by the end of the month as representatives from the two countries met in Washington yesterday.
Getting the Netherlands and Japan to impose tighter export controls on China would be a major diplomatic win for US President Joe Biden’s administration, which had earlier announced sweeping restrictions on Beijing’s access to US chipmaking technology to slow its technological and military advances.
Without Japanese or Dutch cooperation, US companies would face a competitive disadvantage.
“We have been in discussion with the United States and other countries regarding the export-control regime,” Yasutoshi Nishimura, Japan’s Minister of Economy, Trade and Industry, told reporters.
“We will implement any measures in accordance with our Foreign Exchange Law and through international cooperation,” he added, declining to provide further details.
Masahiko Hosokawa, a Meisei University professor, said while Nikon would be affected, the Japanese company most likely to be impacted by new restrictions will be chip manufacturing machinery maker Tokyo Electron, which relies on China for a quarter of its sales.
“A balance needs to be struck so no one among Japan, the United States and Europe will be disproportionately disadvantaged. It’s about fairness,” he said.Japan expects sales at affected chip-related companies to rebound quickly because the market for their equipment is expanding, said a trade and industry official involved in overseeing semiconductor firms in the country.
Dutch officials meanwhile have insisted that fresh controls address national security concerns rather favour US chip-related companies. — Reuters
