Japan and the Netherlands are poised to join the United States in limiting China’s access to advanced semiconductor machinery, forging a powerful alliance that will undercut Beijing’s ambitions to build its own domestic chip capabilities, according to people familiar with the negotiations.
U.S., Dutch and Japanese officials are set to conclude talks as soon as Friday U.S. time on a new set of limits to what can be supplied to Chinese companies, the people said, asking not to be named because the talks are private. Negotiations were ongoing as of late Thursday in Washington. There is no plan for a public announcement of restrictions that will likely be just implemented, the people said.
The Netherlands will expand restrictions on ASML Holding, which will prevent it from selling at least some of its so-called deep ultraviolet lithography machines, crucial to making some types of advanced chips and without which attempts to set up production lines may be impossible. Japan will set similar limits on Nikon.