Trump administration pressed Dutch hard to cancel China chip-equipment sale: sources

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Trump administration pressed Dutch hard to cancel China chip-equipment sale: sources
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Trump administration mounted an extensive campaign to block the sale of Dutch chip manufacturing technology to China: sources by alexalper Toby Sterling StephenNellis

WASHINGTON/AMSTERDAM/SAN FRANCISCO - The Trump administration mounted an extensive campaign to block the sale of Dutch chip manufacturing technology to China, with Secretary of State Mike Pompeo lobbying the Netherlands government and White House officials sharing a classified intelligence report with the country’s Prime Minister, people familiar with the effort told Reuters.

Over the following months, U.S officials examined whether they could block the sale outright and held at least four rounds of talks with Dutch officials, three sources told Reuters. ASML has never publicly disclosed the identity of the Chinese customer, but Nikkei and others have reported that it is Semiconductor Manufacturing International Corp , China’s biggest chip-making specialist. SMIC did not reply to a request for a comment.The ASML machine uses extreme ultraviolet light beams, generated by lasers and focused by giant mirrors, to lay out extraordinarily narrow circuits on slabs of silicon known as wafers.

Under current regulations, the U.S. can require a license for many high-tech products shipped to China from other countries if U.S.-made components make up more than 25% of the value. The U.S. Department of Commerce conducted an audit of ASML’s EUV machine, two sources told Reuters, but found it did not meet the 25% threshold, according to one of the people.

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