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    U.S., Japan, and the Netherlands Unite to Restrict Chip Exports to China


    The United States, Japan, and the Netherlands have reached an agreement to restrict exports of chip technology to China.[0] This agreement comes after the Biden administration’s push to limit the growth of China’s chip industry.[1]

    The talks between the U.S., Japan, and the Netherlands focused on the export of advanced semiconductor manufacturing equipment, such as deep ultraviolet (DUV) lithography machines, to China. The restrictions will apply to Dutch-based company, ASML Holding NV, as well as Nikon Corp. and Tokyo Electron Ltd.

    The U.S. first imposed restrictions on exports of chips to China in 2015, further tightening them in 2021 and twice in 2022.[2] In December, the latest set of restrictions were put into place.[2] The new restrictions will extend some of those same export controls to Dutch and Japanese companies.[1]

    ASML is the only company in the world providing extreme ultraviolet lithography (EUV) machines, which are utilized in the most advanced manufacturing processes. However, a restriction has been imposed to prevent their supply to China.[3] The new restrictions will extend this ban to also cover less advanced deep ultraviolet (DUV) lithography equipment.[4]

    The goal of the restrictions is to prevent China from using advanced chips to make increasingly sophisticated weapons.[3] The agreement could also restrict the access of China’s home-grown chip industry to the sophisticated technologies required for modern semiconductor manufacturing.[2]

    ASML has said that its knowledge of the new rules is still limited, making it difficult to map out the “medium and long-term financial, organizational and global industry-wide impact of new export control rules.”[5]

    The agreement between the U.S., Japan, and the Netherlands is part of a larger trade war between the U.S. and China, and could have major repercussions for the global semiconductor industry. Investors should keep a close eye on developments in this area as the restrictions could have a significant impact on ASML, Nikon Corp., and Tokyo Electron Ltd., as well as other chip makers.

    0. “Three-Way U.S. Chip Alliance Should Spook Beijing” The Wall Street Journal, 30 Jan. 2023,

    1. “Biden Wins Deal With Netherlands, Japan on China Chip Export Limit” Bloomberg, 27 Jan. 2023,

    2. “US wins support from Japan and Netherlands to clip China’s chip industry” Computerworld, 30 Jan. 2023,

    3. “US, Netherlands and Japan reportedly agree to limit China's access to chipmaking equipment” Engadget, 28 Jan. 2023,

    4. “US in talks with critical chip tech countries Netherlands, Japan. Topic? China sanctions” The Register, 27 Jan. 2023,

    5. “Details of Dutch US chip technology deal sketchy, ASML leaves 2023 forecasts intact –”, 30 Jan. 2023,

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