America Further Tightens Its Chipmaking Technology Sanctions On China!

General news News Tech Tech News 04/09/2024

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TECH NEWS – Not only does the Asian country have to deal with the US blocking its access to cutting-edge chipmaking technology, it also has to deal with another aspect related to manufacturing as America has tightened its sanctions.

The new development has to do with a Dutch company, ASML.ASML has been asked by the US government to stop repairing advanced chipmaking equipment sold to China, as other bans are in place, as it cannot sell extreme ultraviolet (EUV) or deep ultraviolet (DUV) lithography machines to China.According to Reuters, a U.S. delegation and ASML leadership are holding talks on the matter today.The Americans are hoping that by stopping the service of the machines already in Chinese hands, they can either slow down or even stop the Chinese manufacturers.ASML considers China to be its biggest market after Taiwan and South Korea, but the sanction could complicate matters because, for example, SK Hynix and TSMC also have production lines in China and are not affected, only Chinese chipmakers, so companies with an acceptable license should be given an exemption.

The Dutch government also has security concerns.The Netherlands supports Ukraine and therefore fears that Chinese-made chips could find their way into weapons and equipment used by the Russians in the war against the Ukrainians.Dutch-Russian relations were already not good when the Russians shot down Malaysia Airlines flight MH17 in 2014, killing 298 people, including 193 Dutch citizens.

Despite the restrictions, the Taipei Times reported that they have yet to have a significant impact. Chinese manufacturers are persevering and continuing to find solutions to find a way out despite the escalating sanctions.According to Paul Triolo, a senior associate with the Trustee Chair in Chinese Business and Economics at the Center for Strategic and International Studies, “Cutting off service will inexorably degrade the capabilities of this equipment.And so the manufacturer will be fighting a kind of rearguard action to keep these machines running as long as possible.”

Zhao Lijian’s response from the Chinese Foreign Ministry? “Technological terrorism”…

Source: PCGamer, Reuters, Taipei Times

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