PanamaTimes

Thursday, Apr 18, 2024

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.
Comments

Oh ya 1 year ago
Yes China we want you to fill Wallymart with cheap plastic crap but not do anything we overlords deem not right as we want to stay on top of the pile even as out country and currency slips into the ditch, with Saudi dumping the petro dollar and the BRICS+ talking about a commodity backed currency which we can not compete with

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×