Japan and the Netherlands have reportedly agreed for stricter restrictions on the export of chip manufacturing technology to Chinese companies.
Companies that are most likely to suffer from the consequences of the deal include ASML, Nikon, and Tokyo Electron. Bloomberg has reported that it could take months for Japan and the Netherlands to legalize the agreement.
The restriction follows Joe Biden’s order for the US to restrict chip sales to China, and has been announced in an attempt to reduce China’s access to advanced semiconductors that contributes to its military and artificial intelligence capabilities.
ASML, the company whose 15% of sales has been driven by China, is going to be impacted the most as a result of the deal. The company is said to be the only one in the world that produces ultraviolet lithography machines that are critical to the production of advanced semiconductors.
While the restriction is going to be a tough challenge for China, ASML CEO Peter Wennink believes that the country will eventually start developing its own versions of the semiconductors.