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Dutch and US tighten controls on advanced chips tech to curb flow to China
Dutch and US tighten controls on advanced chips tech to curb flow to China
by AFP Staff Writers
The Hague (AFP) Jan 15, 2025

The Netherlands on Wednesday announced a tightening of export controls on advanced semiconductor production equipment, but added the new measures targeted a "very limited number of technologies and goods."

The latest curbs on exports by sector heavyweight ASML come as the United States also unveiled further measures to prevent diversion of the technology by China.

"The Netherlands will adjust the national export control measure for advanced semiconductor production equipment as of 1 April 2025," said the Dutch Foreign Ministry.

"As of that date, a national export permit will apply to more types of technology," it added in a statement.

Dutch Foreign Trade Minister Reinette Klever said the new steps were aimed specifically at curbing the export of specific measuring and inspection equipment used in semiconductor production.

"We see more safety risks with the uncontrolled export of this equipment," said Klever, adding "That's why an export licence is now required."

But the extension of the measures "is aimed at a very limited number of technologies," the Dutch Foreign Ministry said.

"The Netherlands plays a unique role in this. It is important that we do not unnecessarily disrupt the chip industry," Klever added.

"When expanding the export control measure, we have therefore proceeded as precisely as possible," she said.

ASML in a statement to AFP said it saw "no additional impact" to what was reported by the company in early December, when it brushed off the announcement of fresh US export curbs to China and kept its forecasts unchanged for 2025.

Investors also seemed unmoved, with ASML's share price remaining flat on the Amsterdam stock exchange's blue chip AEX index.

Beijing however said it has "noted the announcement... and has expressed high concern to the Netherlands about this."

The Chinese Commerce Ministry in a statement called on the Netherlands to "respect market principles and the spirit of contract... and maintain the stability of the global semiconductor industry and supply chain."

US tightens controls on advanced chips to curb flow to China
Washington (AFP) Jan 15, 2025 - The United States unveiled further export controls Wednesday on advanced computing semiconductors, increasing due diligence requirements for businesses as it seeks to prevent diversion of tech to China despite existing restrictions.

The move -- part of a series of actions before President Joe Biden leaves office -- comes days after US officials announced fresh curbs on AI chip exports, seeking to make it harder for Beijing to access the advanced technology.

"These rules will further target and strengthen our controls to help ensure that the PRC and others who seek to circumvent our laws and undermine US national security fail in their efforts," Commerce Secretary Gina Raimondo said, referring to the People's Republic of China.

Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that these can be used to advance Beijing's military systems and other tech capabilities.

But there have been worries about circumvention.

The latest controls aim to hold back China from getting high-end computing semiconductors needed to develop advanced artificial intelligence capabilities, the US commerce department said.

"By enhancing due diligence requirements, we are holding foundries accountable for verifying that their chips are not being diverted to restricted entities," said Alan Estevez, Commerce Department under-secretary for industry and security.

The outgoing Biden administration's moves have drawn ire, with China's commerce ministry saying Beijing was "strongly dissatisfied and firmly opposed" to them.

The ministry vowed in a statement Wednesday that China would take measures to safeguard its interests.

With the new rules, foundries and packaging companies that want to export certain advanced chips face broader license requirements unless they meet several conditions.

The rules also aim to enhance reporting for transactions involving newer customers "who may pose a heightened risk of diversion," said the US commerce department.

- Blacklist -

The department on Wednesday placed 25 China-based entities, alongside two Singapore ones, on a trade blacklist as well.

Companies added to the so-called Entity List are restricted from obtaining US items and technologies without a license.

Among those impacted was Sophgo Technologies, which was said to have been involved in Huawei accessing chips from Taiwanese chip giant TSMC.

Some of the Entity List additions were made because the businesses helped advance China's military modernization through the development of AI research, a government posting said.

Others were accused of aiding the development of advanced computing integrated circuits that further China's progress in weapons systems, or posing a risk of diversion to Huawei -- which has itself been blacklisted.

Such activities, according to the postings, were contrary to US national security and foreign policy interests.

Apart from chip export controls, Washington finalized a rule this week effectively barring Chinese technology from cars in the American market.

The announcement took aim at software and hardware from the world's second-largest economy over national security risks.

US officials are also mulling new restrictions to address risks posed by drones containing tech from adversaries like China and Russia.

Beijing said Wednesday that the Biden administration's measures have "seriously infringed upon" Chinese companies' rights and interests.

But the rollout of many plans will fall to US President-elect Donald Trump, who returns to the White House next week.

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