U.S. Urges Tighter Curbs on China's Access to Semiconductor Technology

According to the report, the U.S. is specifically calling on Japanese companies to limit exports to China of specialized chemicals crucial for chip manufacturing, such as photoresist.

Recent developments indicate that the U.S. administration is stepping up its efforts and pressing important allies including the Netherlands, Germany, South Korea, and Japan to tighten limitations on China’s access to chip technology, according to a report published by Bloomberg News on Wednesday. Beijing’s strategic aspirations in the tech industry are causing Washington increasing alarm, as this move highlights.

According to the report, the U.S. is specifically calling on Japanese companies to limit exports to China of specialized chemicals crucial for chip manufacturing, such as photoresist. This push aligns with the broader strategy of restricting China’s access to advanced semiconductor technology, which has become a focal point of geopolitical tensions between the two global powers.

Additionally, Washington is exerting pressure on the Netherlands to halt semiconductor equipment maker ASML (ASML.AS) from servicing and repairing chipmaking equipment for Chinese clients, which were purchased before the implementation of restrictions on sales earlier this year. This revelation was confirmed by a source familiar with the matter, further emphasizing the U.S. government’s determination to curb China’s technological advancement in critical sectors.

Tokyo and The Hague, however, appear to be cautious, as they seek to evaluate the impact of their current restrictions before considering more stringent measures.

The report indicates that officials from the U.S. Commerce Department broached the subject during a meeting on export controls in Tokyo last month. While the Dutch foreign ministry declined to comment on the matter, and the U.S. Commerce Department refrained from responding to requests for comment, it’s evident that discussions surrounding semiconductor technology are becoming increasingly sensitive and complex.

An official at Japan’s industry ministry mentioned that ongoing discussions on export controls with relevant countries are routine, indicating that Japan is carefully weighing its options amid the escalating tensions between the U.S. and China over technological dominance.

ASML, the Dutch semiconductor equipment maker at the center of the controversy, has yet to respond to the latest developments. The company’s role in servicing chipmaking equipment for Chinese clients has come under scrutiny, reflecting the broader challenges faced by multinational corporations navigating the complexities of geopolitical rivalries.

The concerns raised by American officials about China’s access to advanced chips stem from fears that Beijing could leverage these technologies for military purposes. With the rapid expansion of China’s military capabilities, fueled in part by advancements in semiconductor technology, the U.S. is doubling down on efforts to restrict China’s access to critical components that could bolster its military prowess.

As tensions between the U.S. and China continue to simmer on multiple fronts, including trade, technology, and security, the semiconductor industry has emerged as a critical battleground. The outcome of these geopolitical maneuvers will not only shape the future of the semiconductor sector but also have far-reaching implications for global economic and security dynamics.