KazPost

Kazakhstan News
Tuesday, Mar 28, 2023

US, Netherlands in last-stretch talks on chip export blocks to China

US, Netherlands in last-stretch talks on chip export blocks to China

Dutch officials to fall in line with US in stopping China’s rise on tech.
U.S. and Dutch officials are meeting in Washington D.C. on Friday to strike a deal that would impose new export restrictions on key Dutch microchip technology to China.

A deal is within reach, unnamed sources told media ahead of the talks. But "discussions are ongoing" and there's "not really an idea on when there will be a result," Sean Silbert, a senior adviser at the Dutch embassy in Washington DC, told POLITICO in an email.

The agreement to limit advanced technology sales to China would be a major win for Washington in its efforts to stop the rise of China as a tech superpower. It would notably stop some of the sales of advanced microchip printing equipment by Dutch giant ASML, one of the few companies in the world to produce the printers needed to manufacture high-end semiconductors.

But a deal is expected to shake up relations between The Hague and other EU capitals, as it would create a parallel export controls regime between the U.S., the Netherlands and others that challenges the EU's common posture toward China.

The talks are happening in a "technical meeting" and also involve Japan, which controls other critical parts of the chip equipment market. Discussions have been ongoing for many months and ramped up when the U.S. imposed its own export restrictions on advanced chip technology to China in October.

News of the meeting was first reported by Reuters on Thursday.

The Netherlands is a key player in the U.S. strategy to cut off microchip supplies to China. Japan has signaled before it's willing to play along with the U.S., but the Netherlands has taken a more cautious line, well aware that a block of sales to China will hurt ASML's order book and longer-term strategy.

The U.S. has spent months wooing the Netherlands over the need to take a strong political line against China, according to three officials directly involved in those discussions. Washington has enticed The Hague by inviting it to host this year’s “Summit for Democracy,” an annual event started by the White House to boost democratic values worldwide.

Dutch Prime Minister Mark Rutte last week met with U.S. President Joe Biden, where they discussed how to "quite frankly, meet the challenges of China," the U.S. leader told reporters ahead of the meeting.

The export restrictions that are being considered would target some of ASML's so-called deep ultraviolet (DUV) lithography machines. The restrictions would further tighten ASML's sales to China, after its exports of even more advanced extreme ultraviolet (EUV) machines failed to get the approval of Dutch authorities since 2019.

China represents 18 percent of ASML's order book, its Chief Financial Officer Roger Dassen said in an interview in the margins of the firm's financial results this week. But a ban wouldn't be felt immediately because the demand for its machines globally still outweighs what the company can manufacture.

Part of the discussions between the U.S. and Dutch delegations has been about the threshold to define when chip technology is advanced, and thus strategically important.

In the industry, chips with single-digit nanometers are deemed to be more advanced than those with double-digit nanometers. EUV machines are best placed to manufacture those single-digit chips, but in some cases DUV machines can be "boosted" when combined with other technology, which raises their strategic value in the tug-of-war over chip technology.

ASML's Chief Executive Officer Peter Wennink told reporters this week that he expected a deal "rather sooner than later," but that it would take "months" to clarify the details of a high-level agreement.
Newsletter

Related Articles

KazPost
Close
0:00
0:00
AOC explains why she opposes banning TikTok
Singapore’s Prime Minister says China and US need to stabilize relations because world can't afford a confict between the two superpowers
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Orbán Viktor: the restructuring of the power relations in the whole of Europe is taking place
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
European MP Clare Daly condemns US attack on Nord Stream
Kamala Harris: "The United States has formally determined that Russia has committed crimes against humanity."
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Nord Stream terror attack: David Sacks breaks down Sy Hersh's story
Being a Tiktoker might be expensive…
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
The desk of King Carlos Alberto of Sardinia has many secret compartments
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
×