The US plans to further tighten semiconductor technology restrictions on China
It has been learned that the Biden administration has told its allies that it intends to impose the strictest trade restrictions if China continues to have access to cutting-edge semiconductor manufacturing technology. The United States has long imposed export controls on China and has asked its allies, such as Japan, South Korea, and the Netherlands, to do the same. However, in the case of ASML, a Dutch manufacturer of semiconductor lithography equipment, China accounted for 49% of its sales in the second quarter of 2024.
US Considers Tougher Trade Rules Against Companies in Chip Crackdown on China - Bloomberg
U.S. warns allies it is considering toughest semiconductor restrictions on China - Bloomberg
US planning 'draconian' sanctions against China's semiconductor industry: Report | Tom's Hardware
https://www.tomshardware.com/tech-industry/us-planning-draconian-sanctions-against-chinas-semiconductor-industry-report
ASML orders up 24%, with China still the biggest market
https://thenextweb.com/news/asml-orders-up-china-still-biggest-market
According to the news site Bloomberg, the U.S. government has said it will consider imposing the Foreign Direct Product Rule (DFPR), the toughest trade restriction, if ASML and Tokyo Electron, a semiconductor manufacturing equipment maker, continue to provide China with access to cutting-edge semiconductor manufacturing technology known as 'Draconian.'
The United States is severely restricting the export of semiconductor technology to China due to concerns that semiconductors may be diverted for military use. And not only is it restricting its own exports, it is also lobbying pro-American forces to not hand over semiconductor technology to China.
ASML, a Dutch company, is a manufacturer with a monopoly on semiconductor lithography equipment technology, so the United States is urging the company to stop exporting even parts of cutting-edge technology to China in 2022.
The United States pressures the Netherlands not to sell DUV equipment used in semiconductor manufacturing to China - GIGAZINE
However, China is an important market for ASML, with 49% of its sales in the second quarter of 2024 coming from China, up 24% from the previous year to 5.6 billion euros (about 957 billion yen). In addition, Tokyo Electron and others also count China as a major trading partner.
Since the United States is not happy with this situation, it has threatened to apply the DFPR to China even if the country continues to provide semiconductor manufacturing technology to China in the future, even if the technology or software is of American origin.
China has taken measures such as using routes via third countries and improving the technological capabilities of its domestic manufacturers, so it is unclear how effective the economic sanctions are.
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in Note, Posted by logc_nt