US wants ASML to stop servicing China-owned chip equipment
- Reference: 1709821393
- News link: https://www.theregister.co.uk/2024/03/07/us_asml_china_restrictions/
- Source link:
According to [1]Bloomberg , the move is part of a broader push by the Biden administration to tighten up export restrictions already in place to curb China's ability to develop and produce advanced semiconductors.
The Biden administration is pressing allied nations including Germany, Japan, South Korea, and the Netherlands – home to photolithography giant ASML – to impose additional measures to prevent Beijing from advancing its chipmaking efforts, despite the existing restrictions.
[2]
Citing unnamed sources said to be familiar with the matter, Bloomberg reports that Washington is unsurprisingly meeting resistance from allies, many of whom want to wait and see how the impact of existing restrictions unfold before embarking on a further round of measures that might hurt manufacturers in their own countries.
[3]
[4]
ASML is caught up in all of this, as The Register has written before, because its photolithography machines are in high demand by chipmakers around the globe as a key part of the manufacturing process.
Last year, the Netherlands [5]formally joined US efforts to block Chinese access to tools to develop and manufacture cutting-edge semiconductors following months of pressure from Washington.
[6]
While the company's most advanced extreme ultraviolet (EUV) systems were already barred from export to China, the Dutch government brought in new restrictions covering some of its deep ultraviolet (DUV) kit as well.
Not content with this, in January it emerged that the US government had pushed ASML into [7]cancelling some shipments to China before the new restrictions even came into force at the start of the year.
Now it appears the US wants the Netherlands to go even further, and prevent ASML from servicing and repairing chipmaking equipment that Chinese clients purchased before the restrictions were put into place.
[8]US lawmakers want ByteDance to divest TikTok or face a ban
[9]Dutch government in panic mode over keeping ASML in the country
[10]Chip lobby group SEMI to EU: Export restrictions should only be used in self-defense
[11]AMD may have failed to dumb down its chips enough to allow China sales
In effect, the US is asking a company which is a major player in the economy of an allied nation to no longer honor contracts with customers to appease Washington's policymakers.
According to the report, the US also wants Japanese companies to limit exports to China of specialized chemicals that are used in the chipmaking process, such as photoresist materials.
[12]
We asked the US Department of Commerce to confirm that Washington wants allies to further tighten export restrictions to China, and if it would comment on the specific claim about ASML.
ASML told us that it was aware of the reports, but could not comment on what appears to be no more than talks between governments at this stage.
We understand the Netherlands wants closer collaboration between European Union member states on the implementation of export controls, following last year's events.
The Dutch government is said to be unhappy that it implemented export restrictions such as those affecting ASML at the behest of the US, but many other European governments declined to follow suit.
In response, the Netherlands wants discussions with other EU member states about improving coordination in the European export control framework, especially during the earliest stages of any fresh restrictions being mooted.
Earlier this week, ASML was in the news over reports that it might [13]move some operations outside of the Netherlands due to migration policies that it said would restrict its ability to hire the skilled staff. ®
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[1] https://www.bloomberg.com/news/articles/2024-03-06/us-urges-allies-to-further-squeeze-china-on-chip-technology
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Zenyv17pPAZMXQUlFYUXtgAAAcE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zenyv17pPAZMXQUlFYUXtgAAAcE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zenyv17pPAZMXQUlFYUXtgAAAcE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2023/03/10/netherlands_china_chip_ban/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zenyv17pPAZMXQUlFYUXtgAAAcE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2024/01/02/us_pushed_asml_to_cancel/
[8] https://www.theregister.com/2024/03/07/tiktok_divest_ban/
[9] https://www.theregister.com/2024/03/06/dutch_asml_visas/
[10] https://www.theregister.com/2024/03/06/chip_semi_eu/
[11] https://www.theregister.com/2024/03/05/amd_china_chip_exports/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zenyv17pPAZMXQUlFYUXtgAAAcE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2024/03/06/dutch_asml_visas/
[14] https://whitepapers.theregister.com/
Re: The United States Of America are going too far...
Not going far enough yet.
China has expressed intent to attempt to annex Taiwan by force. The US cannot let that happen, because Taiwan produces most of the world's best chips. The alternative to sanctions working is war.
The EU needs to get on board with keeping China from trying that.
China is the biggest threat to the world today. I wish that weren't the case, but Xi has put the world in a very dangerous position.
(Icon for what happens if sanctions fail.)
Re: The United States Of America are going too far...
Here is the problem. The US Govt officially recognises the 'One China' policy which means officially the US says Taiwan is part of China. VERY few countries actually officially recognise Taiwan as a country in its own right.
However the US has made noises about protecting Taiwan from invasion, which irks China and the US politicians who are shagging CCP spies.
It is all a bit of a geo-political shitshow.
Re: The United States Of America are going too far...
Neither side can afford to back down and that's what makes this situation so dangerous.
If the U.S. were to back down China would proclaim to have defeated the U.S. and claim world hegemony. This would undermine the U.S. influence in both Asia in Europe since its promises for nuclear protection will be cast in doubt.
Ergo: the U.S. can never allow this scenario to occur. China *must* back down or a nuclear war will be inevitable.
Re: The United States Of America are going too far...
face-it : China will not back down from Taiwan anymore than Russia didn't back down from Ukraine. Actually, Ukraine is a demonstration to the Taiwanese of what awaits them if they don't go voluntarily with China : " see, do you think the USA will be better able to protect you from us than they were able to protect Ukraine from Russia ? We might have a hard time invading you but your country will be destroyed "
Re: The United States Of America are going too far...
Israel and Gaza, where the US govt is near enough encouraging what is going on.
Re: The United States Of America are going too far...
Well, I guess there's no hope for the world then. Let's just prepare for war and slug it out.
Re: The United States Of America are going too far...
The problem is that Xi has vowed to reunite Taiwan with the mainland during his tenure. That's a dangerous promise to make since it makes backing off very difficult without losing face.
A war is almost inevitable unless the Chinese people replace their leader with someone who doesn't uphold this vow.
Sell
ASML doesn't necessarily have to sell less machines with these sanctions, only to different customers.
We need to be on the lookout for the Chinese trying to work around these sanctions. I've heard rumors the Chinese are setting up shell companies in Laos, Cambodia, Indonesia and the Philippines and producing chips and exporting them back to the mainland.
Every company that receives these machines must prove beyond a doubt that they're not directly or indirectly controlled by the Chinese!
The United States Of America are going too far...
Are they trying to test-stretch how far they can go - again?
How dare to impose on that level against EU countries.