13 December 2022 | Other

Japan to join U.S. effort to cut chip exports to China

Japan and the Netherlands expressed their support for the U.S. plan to tighten controls on exports to China. Thus, the countries are set against supplying the necessary equipment to China. Consequently, such an initiative could cause serious damage to Beijing's technological ambitions.

In the near future, the new allies should report on the adoption of the drastic measures introduced by the United States. Thus, sales of semiconductor manufacturing equipment will be restricted. The Biden administration explained that such measures would prevent Beijing's military from obtaining advanced semiconductors.

An alliance of the three countries would mean almost complete isolation for China. In this case, the Celestial Empire will no longer be able to buy the equipment needed to produce advanced chips. The U.S. has restricted imports from its equipment suppliers Applied Materials Inc., Lam Research Corp. and KLA Corp. Dutch ASML Holding NV and Japanese manufacturer Tokyo Electron Ltd. and Dutch ASML Holding NV are considered two other important suppliers whose participation was necessary to implement U.S. sanctions. In this regard, the adoption of export restrictions by the three countries is a very important development today.

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