Dutch, US Officials to Discuss Potential New Restrictions on Exporting Chip-Making Gears to China

Officials from the Netherlands are headed to Washington to meet and discuss with officials from the United States regarding potential new restrictions on semiconductor manufacturing gears exportation to China.

(Photo : Win McNamee/Getty Images)
WASHINGTON, DC - JANUARY 17: U.S. President Joe Biden meets with Prime Minister Mark Rutte of the Netherlands in the Oval Office of the White House January 17, 2023 in Washington, DC. Biden and Rutte were expected to discuss a range of bilateral issues during the meeting.

Netherlands and United States

A potential deal could be announced as soon as Friday as South China Morning Post reported that Dutch and US officials are set to meet and discuss potential new controls on the exportation of semiconductor manufacturing gears.

The deal between the two countries is an effort by the Biden administration to tighten restrictions to Chinese access from United States chip-making equipment to slow the country's progress regarding technological and military advances.

ASML Holding is located in the Netherlands, which is the world's leading manufacturer of extreme ultraviolet (EUV) lithography machines that are one of the most important gears for making semiconductors.

Chief Executive Officer Peter Wennik clarified that the company does not participate in political discussions. However, he stated that an export deal may be close, and this may be announced soon.

United States President Joe Biden talked about his concerns to Dutch Prime Minister Mark Rutte during a White House meeting a few days ago. This meeting led to the Dutch Government blocking the sale of most EUV equipment to China.

Hesitance

Japan Times reported that countries like the Netherlands and Japan were still not convinced to implement the same restrictions a few weeks ago. Now that a meeting is set to happen for the next few days, this might change as concerns from both parties will be discussed thoroughly.

Despite these signs of having the Netherlands' side, officials from the country are reportedly still unwilling to revise their controls, as the given restrictions may only favor the United States and its own chip-making industry.

Dutch Trade Minister Liesje Schreinemacher stated that they have been talking with US officials for a long time now and in October, they came up with a new set of restrictions that changes the playing field. She added, "You can't say they've been pressuring us for two years and now we have to sign on the dotted line. And we won't."

In the same month, the Biden Administration implemented export control on the sale of chip-making equipment and warned three companies from the United States, including LAM Research, KLA Corp, and Applied Materials.

China boosted its support to chip manufacturing firms in the localities in October last year. The country is aiming to improve the self-sufficiency of its own chip-manufacturing industry, with the goal to end its reliance on exported chip-making companies.

Other Countries

These companies were prohibited to do business with Chinese companies without special permissions from the US Department of Commerce. The Register reported that President Biden has also been meeting with world leaders to gather alliances for this matter.

This includes meetings with Canadian Prime Minister Justin Trudeau, Mexican President Andres Manuel Lopez Obrador, and Japan Prime Minister Fumio Kishida.