According to Bloomberg, Japan and the Netherlands will join the United States in imposing chip bans on China. The goal of this joint effort is to “undercut Beijing’s ambition to build its own domestic chip capabilities”, according to the outlet’s sources.

Japan and Netherlands impose chip restrictions on China

The Dutch company ASML Holding HV will be prevented from transferring deep ultraviolet lithography machines used for chip manufacturing, and similar restrictions will be imposed on the Japanese Nikon Corp.

This is an expansion on US President Joe Biden’s policy to limit China’s ability to manufacture and develop its own semiconductors, which are used for AI and machine learning in the military. However, these restrictions will also affect the mobile technology industry.

US equipment makers have complained that preventing only American companies from trading with China is affecting their competitiveness. This led to the Dutch and Japanese government reconsidering how ASML, alongside Tokyo Electron, are exporting such machinery.

Peter Wennink, CEO at ASML, warned that US-led control on the export of lithography machinery would eventually push China to develop its own advanced technology. “That will take time, but eventually, they’ll get there”, said the executive.

The move by Japan and the Netherlands to join the United States in imposing chip bans on China is part of an ongoing effort to limit the country’s ability to manufacture and develop its own semiconductors. This could have implications for the mobile technology industry and could also push China to develop its own advanced technology. It will be interesting to see how these restrictions will impact the chip industry in the coming months and years.