US to exclude some allies, including Japan and the Netherlands, from restrictions on semiconductor exports to China



The United States, which currently has strict controls on the export of semiconductor technology to China, is reportedly planning to exempt exports from some allies, such as Japan and the Netherlands, from the new rules.

Exclusive: New US rule on foreign chip equipment exports to China to exempt some allies | Reuters

https://www.reuters.com/technology/new-us-rule-foreign-chip-equipment-exports-china-exempt-some-allies-sources-say-2024-07-31/

New rules to block exports of semiconductor manufacturing equipment to China, excluding Japan and other countries - sources | Reuters
https://jp.reuters.com/world/taiwan/WTHQ6XM23FLVDE7GBZWSYOJE3U-2024-07-31/

US will exempt some allies from trade rule aimed at China
https://qz.com/us-japan-netherlands-south-korea-chip-trade-china-1851609863

The United States strictly regulates the export of semiconductor technology to China. The restrictions are not only imposed on companies in the United States, but also on allied countries such as Japan. For example, ASML , a Dutch semiconductor lithography equipment manufacturer and the world's only supplier of EUV lithography equipment, has been repeatedly requested by the United States to stop sales to China.

US requests semiconductor lithography equipment manufacturer ASML to stop sales to China - GIGAZINE



The US government, which believes that regulations have not gone as expected, told its allies in July 2024 that if they continue to provide China with access to cutting-edge technology, it will impose the toughest trade restrictions. This is thought to be aimed at ASML and the Japanese manufacturer

Tokyo Electron .

The United States plans to further strengthen semiconductor technology restrictions on China - GIGAZINE



According to Reuters, citing information from sources familiar with the matter, the new rules on semiconductor manufacturing equipment exports to China, scheduled to be announced in August 2024, will be an expansion of the Foreign Direct Product Rule (DFPR), which will also apply to products that 'use any part of U.S.-made technology or software.'

However, exports from Taiwan, Israel, Malaysia, Singapore, etc. will be restricted, but Japan, the Netherlands, and South Korea will be exempt.

The new rules are still in draft form, but Reuters points out that they offer a way for the US government to exert pressure on China's burgeoning semiconductor industry without antagonizing its allies.

In response to this information, share prices of companies such as ASML, Tokyo Electron, semiconductor manufacturing equipment manufacturer SCREEN Holdings , and semiconductor inspection equipment manufacturer Advantest rose.

in Note, Posted by logc_nt