Biden Administration Urges Allies to Restrict China’s Access to Semiconductor Technology

The U.S. government is pressing its allies, including Japan, the Netherlands, Germany and South Korea, to step up measures to restrict China’s access to semiconductor technology. This was revealed by several people familiar with the matter, and some countries are resisting the U.S. initiative.

The Biden administration has introduced export controls over the past two years to slow China’s build-up of domestic semiconductor manufacturing capacity. The administration’s latest move is aimed at closing such loopholes in export controls, said the person, who asked not to be identified because the talks are private.

The United States is asking the Netherlands to stop ASML Holding from servicing and repairing semiconductor manufacturing equipment purchased by Chinese customers. The devices were reportedly purchased before sales restrictions were implemented this year.

The U.S. also wants Japanese companies to restrict exports to China of photoresists and other specialty materials essential to semiconductor manufacturing. Major manufacturers of photoresists include Japan’s JSR and Shin-Etsu Chemical.

Japan and the Netherlands have responded to the latest push from the U.S. government by saying they want to assess the effectiveness of current restrictions before considering tougher measures, some of the people said. U.S. Commerce Department officials raised the issue at a conference on export controls in Tokyo last month, one person said.

Representatives for ASML, the Dutch Ministry of Trade, and Japan’s Ministry of Economy, Trade and Industry declined to comment. The US National Security Council (NSC) also declined to comment, and the US Department of Commerce did not respond to requests for comment.

The Biden administration has set its sights on China’s semiconductor industry, introducing measures starting in 2022 to restrict exports of advanced semiconductor manufacturing equipment and high-performance semiconductors used in artificial intelligence (AI). Last year, the initiative included Japan and the Netherlands, which are home to major manufacturers of semiconductor manufacturing equipment.

However, loopholes still remain related to repairs and spare parts used in semiconductor manufacturing equipment. U.S. officials were shocked when China’s Huawei Technologies Co., Ltd. announced in August last year a smartphone equipped with domestically produced semiconductors. The United States has been working to keep China’s semiconductor development from progressing past a certain level, but the chips in Huawei’s smartphones are more than a generation ahead of that stage.

Secretary of Commerce Lemond said in December that the United States would take the “strongest possible” measures to protect U.S. national security regarding China’s breakthrough in semiconductor manufacturing. Republican lawmakers are pushing the Biden administration to completely cut off Huawei and Core Core International Integrated Circuit Manufacturing (SMIC) from access to U.S. technology.

The strategy also includes tightening existing restrictive measures.One person familiar with the matter said ASML is unable to provide repairs and services for restricted equipment in China.licenseHowever, the Dutch authorities’ approval review is somewhat lenient. The US wants the Netherlands to take a tougher approach, the official said.

The United States is also seeking to involve more countries in its export controls. The Biden administration is working to add Germany and South Korea to agreements with Japan and the Netherlands. These four countries host major companies in the semiconductor supply chain.

Among German companies, Carl Zeiss supplies ASML with optical components needed for advanced semiconductor manufacturing. The United States is reportedly asking Germany not to allow Carl Zeiss to ship such parts to China.

U.S. and Dutch officials are looking forward to Germany’s participation in export controls, and the Biden administration is pushing for an agreement before the G7 summit in June. Last year, the German government considered whether to restrict exports of semiconductor-related chemicals to China, but Chancellor Scholz, who is scheduled to visit China in April, has not yet made a clear stance on the issue. German Deputy Chancellor and Economics Minister Herbeck will visit the United States this week to meet with Secretary of Commerce Lemond.

The United States and South Korea regarding semiconductor export restrictionsprotocoldid. According to some people familiar with the matter, U.S. officials last year asked China to join the framework to restrict semiconductor exports, and the two countries began formal dialogue in February.

news-rsf-original-reference paywall">Original title: US Urges Allies to Further Squeeze China On Chip Technology (excerpt)

(Updates with details)

2024-03-06 13:24:51
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