On October 17, ASML, the most cutting-edge Dutch producer of semiconductor production equipment, sent an internal email to its employees in the U.S. requesting them not to provide services to Chinese clients following the U.S. government’s new chip export regulations.

Liberty Times reported that ASML employees in the U.S. must avoid servicing, shipping, or supporting any customers in China, directly or indirectly, until further notice. At the same time, ASML actively evaluates which specific parts are affected by the regulation.

Monique Mols, ASML’s head of corporate communications, confirmed that the email leaking on social media on September 12 was honest communication. Still, it was not for spreading with the outside world. Of course, when evaluating new export control restrictions, they would take preventive measures to ensure full compliance with the new regulations.

Bloomberg reported a speech of Thea D. Rozman Kendler, Assistant Secretary of Commerce for Export Administration, on October 13. The Bureau of Industry and Security announced new rules on October 7 in response to U.S. concerns that China could use A.I. to improve military capabilities, support surveillance for rights abuses, and “disrupt or manufacture outcomes that undermine democratic governance and sow social unrest.” 

Some companies must stop shipping equipment to Chinese-owned factories producing advanced chips. 

Kendler added, “China’s military-civil fusion strategy seeks to eliminate barriers between its military and civilian research and commercial sectors, which has resulted in additional controls on China.” 

Kendler assured that foreign engagement on those controls was a priority for the Bureau of Industry and Security, which was in charge of enforcing U.S. export controls.

One of the new export regulations prohibits China from obtaining specific semiconductor chips made with American technology, regardless of whether the chips were manufactured in the U.S.

The new rules also prohibit “U.S. persons” from assisting in chip development or production at Chinese-based plants. That included U.S. citizens, permanent U.S. resident aliens, or protected individuals as defined by law, any juridical person organized under U.S. laws or any jurisdiction within the U.S., including foreign branches, and any person in the U.S.

The new export controls came after U.S. President Joe Biden signed the CHIPS and Science Act in August. 

Bloomberg reported the Philadelphia Semiconductor Index recovered and gained 2.6% after falling 5% earlier.

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