Exclusive-US, Dutch set to hit China's chipmakers with one-two punch

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Exclusive-US, Dutch set to hit China's chipmakers with one-two punch
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The United States and the Netherlands are set to deliver a one-two punch to China's chipmakers this summer by further restricting sales of chipmaking equipment, part of the countries' ongoing effort to prevent their technology from being used to strengthen China's military.While the Dutch are planning to

The United States and the Netherlands are set to deliver a one-two punch to China's chipmakers this summer by further restricting sales of chipmaking equipment, part of the countries' ongoing effort to prevent their technology from being used to strengthen China's military.

The U.S. in October imposed export restrictions on shipments of American chipmaking tools to China from U.S. companies like Lam Research and Applied Materials on national security grounds, and lobbied other countries with key suppliers to adopt similar curbs. The Dutch government plans to announce new regulations on Friday with a licensing requirement for the top tier of ASML'S second-best product line, deep ultra violet semiconductor equipment. ASML's most sophisticated machines - extreme ultraviolent"EUV" lithography machines - are already restricted, and have never been shipped to China.

The new Dutch regulations will not take effect immediately, sources said, with one person expecting the effective date to be September, two months after publication. It is not unusual for the U.S. to modify proposals before clearing regulations, so both the timing and the restrictions could change. The plan described reflects thinking in late June.

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