A new rule to limit the export of chip technology to China won’t apply to semiconductor equipment manufacturers from a number of allied countries, including the Netherlands’ ASML, Reuters learned. The rule, expected to be announced next month, will expand the number of items that are subject to export restrictions enforced by the US.
Bloomberg reported about an upcoming tightening of exports curbs two weeks ago. This focused on ASML, TEL and other equipment manufacturers continuing to service gear in certain advanced Chinese fabs. The US government wants to put a stop to this and it was suggested that the Biden administration was threatening to invoke the so-called Foreign-Direct Product Rule (FDPR) if allied governments wouldn’t implement additional restrictions of their own.
Through the FDPR, the US claims jurisdiction over every piece of technology that contains or is manufactured using technology of US origin. It has been used before, to expand DUV scanner export restrictions enacted by the Dutch government.
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