Japan and the Netherlands are ready to join the US in limiting China's access to advanced semiconductor equipment, creating a powerful alliance that will undermine Beijing's ambitions to develop its own chip manufacturing. It is reported by Bloomberg, citing sources..

US, Dutch and Japanese officials set to finalize talks on new restrictions on what can be supplied to Chinese companies. According to Bloomberg sources, there are no plans to publicly announce the restrictions, which will most likely just be introduced..

The Netherlands will extend restrictions on ASML Holding NV to prevent it from selling at least some of the so-called deep ultraviolet lithography machines, which are critical to the manufacture of some types of modern microcircuits and without which attempts to establish production lines may not be possible.. Japan will set similar restrictions for Nikon Corp.

The joint effort expands restrictions announced by the administration of US President Joe Biden in October 2022 to limit China's ability to produce its own advanced semiconductors or buy advanced chips from abroad that would help the military and the field of artificial intelligence.. These three countries are home to the most important companies producing equipment for the production of microcircuits, in particular ASML, Japan's Tokyo Electron Ltd. and American Applied Materials Inc..

U.S. hardware makers complain that the Biden administration's unilateral actions allowed foreign competitors to continue operating in one of their largest markets and undermined the goal of limiting China's military progress..

“This makes the next escalatory move in the US-China tech war a little more meaningful and could dampen yuan sentiment a little in the near term,” said analyst Fiona Lim..

China, in turn, rebuffed the efforts of the United States. In December 2022, Beijing filed a lawsuit with the World Trade Organization aimed at lifting US-imposed export controls..

Even ASML CEO Peter Wennink warned that the American campaign could have unpredictable consequences.. On Jan. 25, Wennink said that US-led export controls against China could eventually push Beijing to successfully develop its own technology in advanced chip manufacturing equipment..

“If they can't get these machines, they'll develop them themselves.. It will take some time, but in the end they will get there,” Wennink said..

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Earlier it was reported that the United States, through export controls, will try to limit Chinese production of memory chips without specialized military applications.. The restrictions include a ban on the supply of US chip manufacturing equipment to factories in China that produce advanced NAND chips..

The Biden administration's move to block exports of advanced computer chips to China signals a new phase in relations between the world's two largest economies. This is a fierce competition for the title of the world's leading technological and military power, writes AP NEWS.