Xi Jinping's Army To Face Setback As US, Netherlands Move To Further Block Chip Equipment Sales: Report

The United States and the Netherlands are preparing to further restrict sales of chipmaking equipment to China’s chipmakers in an ongoing effort to prevent their technology from bolstering Xi Jinping‘s military, Reuters reports.

Restricting Chipmaking Equipment

The Dutch plan to limit certain equipment from the nation’s prized jewel ASML and other companies, while the U.S. is expected to withhold even more Dutch equipment from specific Chinese fabs. The U.S. previously imposed export restrictions on American chipmaking tools to China on national security grounds and has urged other countries with key suppliers to adopt similar measures.

China’s Response

Chinese Embassy spokesperson Liu Pengyu criticized the move, accusing the U.S. of deliberately obstructing Chinese companies and pushing for decoupling. Liu stated that China would closely monitor the developments and firmly safeguard its interests.

New Regulations

The Dutch government plans to announce new regulations requiring a licensing requirement for the top tier of ASML’s second-best product line, deep ultraviolet (DUV) semiconductor equipment. ASML’s most sophisticated machines are already restricted and have never been shipped to China. The U.S. is expected to restrict foreign equipment with even a small percentage of U.S. parts to about six Chinese facilities.

Impact on Chip Equipment Makers

The new regulations could impact other companies, including atomic layer deposition firm ASM International. The U.S. rule is expected to apply to ASML, the world’s leading chip equipment maker because its systems contain U.S. parts and components.

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