U.S. may reportedly stop ASML to supply chipmaking tools to China

The U.S. is seeking every possible way to stop Chinese companies from making advanced processors. A new input related to this matter depicts that the U.S. authorities are now planning to block ASML from supplying chipmaking tools to China.

Biden administration considers pressuring the Netherlands to stop ASML from sending its chipmaking tools to China. The details mention that the authorities may list some Chinese chipmaking firms and restrict them from obtaining Dutch tools.

The U.S. export policy chief – Alan Estevez will meet the Dutch government and ASML executives in the Netherlands next Monday to bake discussions on this matter.

“The Netherlands always has good discussions with our partners. The meeting of officials on Monday is one example of that” – said the Dutch Foreign Ministry, marking confirmation of the upcoming meeting between the U.S. chief and ASML.

While the meeting may strengthen relations between the Dutch authorities and the U.S., it mainly aims to push back the potential of China making advanced chipsets.

China opposes:

The Chinese Embassy, on the other hand, says that it doesn’t support the unnecessary expansion of the national security allegations on its companies from the U.S. At the same time, the American government is forcing other countries to join their agenda of deforming Chinese firms in the global market.

Not only China, but the new decision is likely to impact ASML’s sales revenue as China has been the second-largest market for it. Though it is unclear how far things will affect both sides after the U.S.-Dutch meeting on the coming Monday.

Huawei has joined hands with SMIC to build new 5nm chips. The firm is likely to use some stocked equipment to create the new processors. It would be worth seeing whether new efforts of the U.S. will affect Huawei and its partners or not.

(Source – Reuters)