Pressuring allies not to fulfill chip kit service contracts with China now official US policy

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Pressuring allies not to fulfill chip kit service contracts with China now official US policy
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Xi Jinping warns 'no force' can stop country's science and tech progress

The US government has publicly confirmed it is applying pressure on chipmaking tool suppliers based in allied nations – think ASML and the like – to halt maintenance of kit already sold to China.

In effect, the administration is asking others to force their own companies to break binding contractual agreements they have entered into with customers in China to curb semiconductor advances.earlier this month as part of a broader push by the Biden administration to tighten up existing export restrictions, but is now Department of Commerce policy.

ASML's EUV products were blocked by the Dutch government from being exported to China several years ago, and the Netherlands was last year persuaded toA Dutch delegation visited Beijing this week, and Trade Minister Geoffrey van Leeuwen was told by his Chinese counterpart that the Netherlands is regarded as a"trustworthy" economic and trade partner. The two are said to have discussed topics including the export of lithography machines and cooperation in the semiconductor industry.

"Creating scientific and technological barriers and severing industrial and supply chains will only lead to division and confrontation," Xi said, while reminding Rutte that China is ASML's second largest market after Taiwan.

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