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Biden Nears Win as Japan, Dutch Back China Chip Controls

 1 year ago
source link: https://finance.yahoo.com/news/japan-netherlands-join-us-chip-014759438.html
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Biden Nears Win as Japan, Dutch Back China Chip Controls

Jenny Leonard and Cagan Koc
Sat, January 28, 2023, 1:53 AM GMT+9·3 min read
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Biden Nears Win as Japan, Dutch Back China Chip Controls

(Bloomberg) -- Japan and the Netherlands are poised to join the US in limiting China’s access to advanced semiconductor machinery, forging a powerful alliance that will undercut Beijing’s ambitions to build its own domestic chip capabilities, according to people familiar with the negotiations.

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US, Dutch and Japanese officials are set to conclude talks as soon as Friday US time on a new set of limits to what can be supplied to Chinese companies, the people said, asking not to be named because the talks are private.

There is no plan for a public announcement of the restrictions, and once an agreement is struck, actual implementation could take months as the two countries finalize legal arrangements, according to people familiar with the matter.

“Talks are ongoing, for a long time already, but we don’t communicate about this. And if something would come out of this, it is questionable if this will be made very visible,” Dutch Prime Minister Mark Rutte said Friday in The Hague in response to a question about the talks.

“This is such a sensitive topic that the Dutch government chooses to communicate diligently, and that means that we only communicate in a very limited way,” Rutte said.

The Netherlands will expand restrictions on ASML Holding NV, which will prevent it from selling at least some of its so-called deep ultraviolet lithography machines — crucial to making some types of advanced chips and without which attempts to set up production lines may be impossible. Japan will set similar limits on Nikon Corp.

John Kirby, a spokesperson for the White House National Security Council, confirmed Friday that Dutch and Japanese officials were meeting with US National Security Adviser Jake Sullivan.

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