US Official Heads to Japan to Strengthen Crackdown on China's Semiconductor Production

On Tuesday, June 18, Alan Estevez, the U.S. export policy chief, was reported to be on his way to Japan. This visit follows his meeting with the Dutch government and aims to rally support from allies in intensifying measures against China's production of cutting-edge semiconductors.

Estevez's mission is a continuation of the efforts to build on a 2023 agreement involving the United States, Japan, and the Netherlands. The agreement focused on preventing the transfer of chipmaking equipment to China, which could potentially advance its military capabilities.

Previous and Ongoing Restrictions

The United States had already imposed widespread limitations in 2022 on the export of advanced chips and chipmaking equipment to China. This action affected companies such as California-based Nvidia and Lam Research.

Last July, Japan, home to prominent chip equipment manufacturers Nikon Corp and Tokyo Electron, aligned itself with the U.S. policy. It restricted the export of 23 types of equipment crucial to chip production, including machines for depositing films on silicon wafers and devices for etching microscopic circuits.

Following suit, the Dutch government began regulating ASML's deep ultra-violet (DUV) semiconductor equipment to China. In response, the U.S. placed restrictions on additional DUV machines destined for a few Chinese factories, citing jurisdiction due to the presence of U.S. parts and components in ASML's systems. ASML is the leading chip equipment manufacturer worldwide.

Expanding the Restrictions

The United States is currently engaged in discussions with allies about the prospect of adding 11 more Chinese chipmaking facilities to a restricted list. This list already includes five factories, including SMIC, China's largest chipmaker. Additionally, the U.S. intends to exert control over additional chipmaking equipment.

Previously, U.S. officials visited the Netherlands in April with the objective of preventing ASML from servicing specific equipment in China. According to U.S. regulations, American companies are prohibited from servicing equipment at advanced Chinese factories. However, existing ASML servicing contracts in China are still intact, as the Dutch government lacks the extraterritorial authority to terminate them.

Chinese Response and Technological Advancements

Notably, the Chinese Embassy in Washington did not provide an immediate response to a request for comment. Furthermore, in a display of technological prowess, Chinese telecoms giant Huawei launched the Huawei Mate 60 Pro last year. This phone, powered by a sophisticated chip, was seen as a symbol of China's technological advancement, despite Washington's efforts to curb its progress.