To Control Popular Semiconductors US Also Puts Pressure On Korea And Germany

The Joe Biden administration is pressuring key countries in the semiconductors supply chain, such as the Netherlands, Japan, Germany, and Korea, to impose stricter export controls on China. It is reported that there is a backlash among some countries against this U.S. government move.

On the 6th (local time), Bloomberg News, citing sources, reported that the Biden administration is trying to reach a new multilateral agreement with allies to close loopholes in semiconductor export controls to China that have been implemented over the past two years.

Despite the United States’ strong export controls, China’s Huawei appears to be taking into account the continued rise of China’s semiconductor industry, as it is collaborating with foundry company SMIC to produce 5nm (nanometers, 1nm = 1 billionth of a meter) semiconductors.

First, the United States is urging the Netherlands not to provide after-sales service for semiconductor equipment sold by Dutch semiconductor equipment company ASML to Chinese companies before export controls were implemented this year. It is also reported that Japan has been requested to restrict exports of chemicals essential for semiconductor manufacturing. Japan’s JSR is the No. 1 company in the photoresist field, a core material for semiconductors, and holds a 30% share of the global market.

A US source said, “ASML needs a license to repair restricted semiconductor equipment in China, but the Netherlands is somewhat lax in its approval process.” However, the Dutch and Japanese governments reportedly responded coldly to the US request, saying, ‘Evaluation of the effectiveness of existing export controls takes priority.’

Bloomberg reported that the Biden administration also wants Germany and Korea to take more active measures regarding export controls to China.

In the case of Germany, Carl Zeiss, well-known for its optical technology, supplies ASML with optical components necessary for the production of advanced semiconductors, and the United States is hoping that the German government will take action to prevent Carl Zeiss from exporting such components to China. It is reported that the Biden administration is pressuring Germany to reach a related agreement before the G7 summit in June.

The Biden administration is also pursuing a plan to expand the existing semiconductor export control agreement, which already includes Japan and the Netherlands, into a multilateral agreement by involving Germany and Korea. Considering Korea’s leading role in semiconductor production and supply of semiconductor manufacturing equipment components, the United States has been in close consultation with the Korean government regarding export controls for semiconductors to China.

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