WASHINGTON, Jan 27 (Reuters) – The US has secured a take care of the Netherlands and Japan to limit exports of some superior chip-making equipment to China in talks that concluded on Friday, Bloomberg reported, citing individuals accustomed to the matter.

The settlement would lengthen some export controls the US adopted in October to corporations based mostly within the two allied nations, together with ASML Holding NV (ASML.AS), Nikon Corp (7731.T) and Tokyo Electron Ltd (8035.T), the report mentioned.

Officers from the Netherlands and Japan had been in Washington discussing a variety of points in talks led by White Home nationwide safety adviser Jake Sullivan.

John Kirby, the White Home nationwide safety spokesperson, earlier mentioned the officers had been speaking about points which are “vital to all three of us.”

“And positively the security and safety of rising applied sciences goes to be on that agenda,” he informed reporters.

A supply accustomed to the talks mentioned limiting exports of semiconductor manufacturing tools to China was among the many subjects.

Getting the Netherlands and Japan to impose tighter export controls on China could be a serious diplomatic win for President Joe Biden’s administration, which in October introduced sweeping restrictions on Beijing’s entry to U.S. chipmaking know-how to sluggish its technological and army advances.

When requested concerning the Bloomberg report, the White Home declined to remark past Kirby’s earlier remarks.

The Dutch overseas ministry and a spokesperson at Japan’s Ministry of Financial system, Commerce and Business declined to remark.

A spokesperson at Nikon declined to remark, saying the corporate couldn’t talk about one thing that had not been formally introduced. Officers at Tokyo Electron had been unavailable for remark when Reuters contacted them exterior common enterprise hours.

The Netherlands’ prime minister, Mark Rutte, earlier mentioned that it was not clear whether or not his authorities would disclose the results of talks with the US over new export restrictions for the semiconductor industry.

Japanese companies would nonetheless have the ability to promote non-advanced merchandise to China beneath the regulation, and any dip in shipments to Chna might be lined within the medium-to-long time period by growing output to areas equivalent to the US, Germany and India, mentioned Akira Minamikawa, analyst at analysis firm Omdia.

However the Japanese authorities and companies might object to the restriction if it contains measures equivalent to a ban on sending engineers to their tools prospects, Minamikawa mentioned, including: “That may deliver too massive an impression on their companies.”

Reporting by Steve Holland, Doina Chiacu, Costas Pitas, Toby Sterling, Kiyoshi Takenaka, Mayu Sakoda and Maki Shiraki; Writing by Kantaro Komiya; Modifying by Kirsten Donovan and Rosalba O’Brien

Our Requirements: The Thomson Reuters Trust Principles.


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