It’s Possible That The Limits Imposed By The Netherlands And Japan On Chip Equipment Shipments To China Aren’t Enough

It’s Possible That The Limits Imposed By The Netherlands And Japan On Chip Equipment Shipments To China Aren’t Enough:

A group representing the semiconductor sector has issued a warning to its U.S. friends, stating that if they do not implement limits on the export of semiconductors production equipment to China that seem to be equal to those implemented by the United States, such measures will not be effective.

Specifics Of The Transaction Are Not Made Public:

warning sent after hearing of agreement between the Netherlands & Japan The warning was issued after hearing of an agreement between the Netherlands & Japan to limit chip-making shipments to China in order to conform with limits established by the Biden Administration in October. The specifics of the transaction are not made public at this time.

The Semiconductor Equipment and Materials International Association (SEMI), which signifies the electronic and semiconductor manufacturing supply chain, stated that it had a common interest in strengthening the national security of the United States and expressed its satisfaction with the agreement reached with Japan as well as the Netherlands.

However, in a long response dated January 31 on the measures that went into effect in October, the organisation voiced worry that the limitations imposed by the allies wouldn’t be nearly as stringent as those imposed by the United States.

SEMI stated that even if Japan, the Netherlands, as well as other allies adopt restrictions on specialized tools, those restrictions would be “usually unsuccessful” only if international parties have agreed to broader controls on Chinese fabricators, also known as fabs, that produce advanced chips. This is the case even if Japan, the Netherlands, as well as other allies adopt limitations on specific tools. SEMI has also said that allies need to prevent their engineers as well as other personnel from providing assistance to high-end fabs in China.

If The Restrictions Exercised By The Allies Are Not As Stringent, Then The US Ought To Provide Licences:

According to SEMI, the United States need to provide licences for more gear to travel to Chinese clients who are not related to the military if the regulations of the allies are not as tight. This recommendation comes after taking into account the availability of the equipment in other countries.
The following types of chip-making instruments cannot be exported to China

Due To Restrictions Imposed By The US:

The following types of chip-making instruments cannot be exported to China
Because of these laws, the United States cannot export certain chip-making equipment to China. They also prevent Americans from providing help to China’s sophisticated chip making companies, which essentially prevents the firms from acquiring any technology from the United States. The United States of America came up with the guidelines in an attempt to impede the scientific and military progress being made by Beijing.

China Will Continue To Be Able To Carry Out Using The Equipment They Now Have:

The fabrication of sophisticated semiconductors in China “will still be allowed to occur using existing equipment, China equipment, and other unregulated goods with the advantage of know-how and services that non-U.S. individuals may supply,” according to a statement written by SEMI.

It was highlighted that the proportion of a Chinese market held by American equipment businesses has decreased over the course of the previous two years due to the fact that Chinese enterprises anticipated the new restrictions. It was alleged that the loss has accelerated since October, with some companies apparently witnessing a fall in market share of twenty percent in recent months.

“Such lost selling are fated for companies from nations that are not bound” by the new regulations, SEMI said, adding that unilateral controls would then divert billions of dollars in sales that would have gone to U.S. companies to competitors. “These lost sales are destined for firms from countries that are not bound” by the new regulations.

The Following New Regulations Were Released By The Department of Commerce In October:

The United States Department of Commerce, which published the guidelines in October and has been collaborating with other nations, did not provide a statement right away.

SEMI Has More Than 2,500 Members Throughout The Globe:

SEMI has nearly 2,500 members all around the globe, including some of the most well-known equipment manufacturers in the United States, such as Lam Research & Applied Materials.

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