Advanced Chip Warfare: US, Japan, Netherlands To Impose Export Controls On China

As tensions between nations continue to escalate in the realm of advanced technology, a Friday report said Japan and the Netherlands are expected to join the U.S. in implementing strict export controls on crucial semiconductor manufacturing equipment bound for China.

The trilateral talks were expected to conclude as early today (Friday), according to a Bloomberg report.

What Happened: The Netherlands, home to one of the world's leading manufacturers of chip-making equipment, ASML Holding NV ASML, would expand restrictions to prevent the sale of machines vital for producing specific types of advanced chips. Japan would also set similar limits on Nikon Corp NINOF.

This move came on the heels of the Biden administration's announcement late last year to impose a ban on exporting advanced U.S. semiconductor technology to China.

The administration characterized this as a national security measure, stating that withholding highly sophisticated semiconductors from China would impede the development of Chinese weapons and surveillance technology.

However, ASML Holding CEO Peter Wennink had a different perspective. He stated in a recent interview that these export control measures could ultimately push China to successfully develop its own technology in advanced chipmaking machines.

"The laws of physics in China are the same as here. The more you put them under pressure, the more likely it is that they will double up their efforts," he said.

Why It Matters: As the technology in question was not only used for Chinese weapons systems but also for other goods, including electric vehicles, in which China is significantly ahead of the U.S., it remained to be seen how these controls will impact the global technology landscape.

China already filed a complaint with the World Trade Organization over the U.S.'s efforts to cut off its access to semiconductor technologies, arguing these restrictions were inconsistent with multiple provisions of the WTO's General Agreement on Tariffs and Trade.

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Photo: H_Ko via Shutterstock