In early October, the Biden administration published new export restrictions to hinder the Chinese Communist Party’s (CCP) ability to purchase and use U.S. technology for manufacturing high-end chips for military development, artificial intelligence, and supercomputers.
However, due to the complexity of international supply chains, the U.S. must have the complementary commitment from its allied nations, especially Japan and Netherlands.
According to a Xin Tang Ren report, He Xianhan, president of Tokyo-based chip equipment supplier Ferrotec, said that Japanese firms have turned down requests of Chinese chipmakers to supply the products that the U.S. would no longer provide.
The chief of Ferrotec, which makes 80% of its products in China, told Financial Times that the Hangzhou-based firm is currently speeding up the relocation of its factory outside China following requirements from U.S. customers – Lam Research and Applied Materials.
Gina said, “I think you’ll see other countries follow us. I think you’ll see Japan and the Netherlands follow our lead.”
She further explained, “The reality is for chip designs, for the most sophisticated chips, artificial intelligence chips, the chips that they (China) need in their hypersonic missiles which they launched last year. We are ahead of them. We need to stay ahead of them. We need to deny them this technology that they need to advance their military. And that’s exactly what we’re doing.”
Chai Huanxin, a semiconductor analyst said that the U.S. export restrictions this round include software and equipment shipped to mainland China. He gave a phone interview about the issue in Chinese.
Chai said that the main purpose of the U.S’s provisions is not just to stifle China’s semiconductor industry, but also to slow down its development.
Chai commented that both the U.S. and Japan have indeed hindered China’s progress in semiconductors.
Regarding the Netherlands’ response to the export curbs, Bloomberg reported that the Dutch government wants to make its own decision concerning ASML’s semiconductor equipment sales to China.
The Netherlands’ ASML has become key to the U.S.’s attempts to impede China. It is one of the world’s dominant chip gear makers in addition to the U.S.’s Applied Materials, Lam Research and KLA, and Japan’s Tokyo Electron.
However, since the U.S. call to stop selling chip equipment to China, ASML hasn’t sold any of its most advanced extreme ultraviolet lithography machines due to being unable to obtain a license from its government under U.S. pressure.
The company can still sell less modern chip-making gears to Chinese semiconductor manufacturers.
As reported by The Diplomat, the U.S. curbs would likely resonate with both Japan and the Netherlands in condemning China’s serious human rights violations.
The outlet noted that apart from what analysts have discussed, the communist regime has also used cutting-edge chips to upgrade its A.I. system and supercomputers for mass surveillance.
These machines will handle huge amounts of private data collected from various inputs such as phone trackers, biometric markers, and e-commerce and travel records – to maintain its surveillance network on ethnic minority groups or dissident targets across the nation.
Since 2016, CCP has ordered its law enforcement force to conduct mass mandatory DNA collection campaigns across Tibet and Xinjiang, including 5-year-old children.
The Chinese regime uses Uyghur DNA samples to create “facial mapping technology, a key node in its data fusion surveillance network.”