Japan and the Netherlands join the US in restrictions on China
As the rumors indicated, both JapanLike the Netherlandswill join the United States in regards to the imposition of chip restrictions on China. The joint effort is reportedly an extension of US President Joe Biden’s policy to limit China’s ability to manufacture and develop its own semiconductors. These are used for AI and Machine Learning in the armybut it will also affect the mobile technology industry.
This “alliance” comes after American equipment manufacturers will complain that preventing only US companies from trading with China was affecting their competitiveness.
As usual, this did “reconsider” to the Dutch and Japanese Government. Following this, it will change the way ASML, along with Tokyo Electron, are exporting their technology to China.
An alliance of restrictions to prevent China from advancing chip development… for now
In essence, this alliance will make the famous Dutch company, ASML Holding, prohibited from sending any ultraviolet lithography machines to China. In other words, restrict the country’s ability to “print” its own wafers for the creation of chips. On the other hand, the restrictions will be similar for the Japanese company Nikon Corp.
In this way, if China wants to make cutting-edge chips, it will have no choice but to create your own lithographic machines, which will slow down the advance of your industry. It is evident that the first step will be to dismantle the current machinery to reverse engineer and reduce development times.
The restrictions for China will only be a short-term hiccup. In the long term, it is clear that the country will achieve technological independence. As reported by Bloomber, this movement has as its sole objective “undermine Beijing’s ambition to create its own national chipmaking capabilities“
This alliance comes after the own ASML CEOPeter Wennink, warned that US control of lithographic machinery exports would end pushing China to develop its own technology advanced. “That will take time, but eventually they will get it.“said the executive.
“US, Dutch and Japanese officials are set to conclude talks as soon as Friday US time on a new set of limits on what can be supplied to Chinese companies,” the sources said.
“Negotiations were continuing late Thursday in Washington. There are no plans to publicly announce the restrictions, which will likely take effect immediately.”
China had anticipated disaster
It must be remembered that China is already designing chips with a chiplet design by AI. Your local companies are making great strides in developing their own graphics chips for AI and gaming. And to make matters worse, since the middle of last year, it is known that Huawei I was working to create a lithographic machine that would allow local companies to bring their chip designs to a 7nm manufacturing process.
To this is added that in mid-December, we knew that China would give up to 143,000 million dollars to its chip industry. It is clear that all these sanctions will slow down China’s development, but it is clear that China will reach the technological forefront.
It will be interesting to know what will happen when it has the capacity to nourish the country Complete with proprietary technology. This would mean remove western technology from the market. And yes, China is the main market for a large part of the industry.