US Urges Allies to Squeeze China Further on Chip Technology.

EXPORT controls; SEMICONDUCTOR manufacturing; SPARE parts; SEMICONDUCTOR technology; PRESIDENTIAL administrations

The US government is urging allies such as the Netherlands, Germany, South Korea, and Japan to tighten restrictions on China's access to semiconductor technology. This effort is aimed at limiting China's progress in developing domestic chip capabilities and plugging holes in existing export controls. The US is specifically requesting the Netherlands to stop servicing and repairing chipmaking equipment sold to Chinese clients before sales limits were implemented. Japan is being asked to limit exports of specialized chemicals critical for chipmaking. However, some countries, including Japan and the Netherlands, are hesitant to implement tighter measures and want to assess the impact of current restrictions first. China's Foreign Minister criticized the US for imposing trade curbs, warning that it will eventually harm the US itself. The Biden administration has been targeting China's semiconductor industry since 2022, but there are still gaps in equipment repairs and spare parts flow. The US is also seeking to expand its export-control blockade to include Germany and South Korea, as they are home to key firms in the semiconductor supply chain. Germany's Carl Zeiss AG, a specialized glass maker, is a critical player in advanced chip production, and the US wants Germany to limit shipments of optical components to China. The Netherlands hopes that Germany will join the export control group, and the US is pushing for an agreement before the G7 summit in June. South Korea, as a leading producer of chips and supplier of spare parts, has been in talks with the US regarding chip export controls. [Extracted from the article]

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