Biden Strengthens Semiconductor Encirclement of China... Pressures Japan and Netherlands to Join Export Controls

[Asia Economy Reporter Haeyoung Kwon] The United States has begun building a united front with allies such as Japan and the Netherlands to enforce semiconductor export controls against China. Even U.S. President Joe Biden has stepped in to urge allied leaders to join the effort.

The White House announced that President Biden raised the issue of semiconductor export controls against China during a summit with Dutch Prime Minister Mark Rutte on the 17th (local time). Press Secretary Karine Jean-Pierre stated, "We recognize the importance of this issue from a national security perspective," adding, "President Biden discussed this matter along with other issues."

The official summary of the summit did not include semiconductor-related details. However, it mentioned discussions on securing safe supply chains and the importance of core technologies from the perspectives of national security and economic prosperity.

Earlier, President Biden also addressed this issue during a meeting with Japanese Prime Minister Fumio Kishida on the 13th. In their joint summit statement, the U.S. and Japan declared their intention to strengthen their joint advantage in economic security, including the protection and promotion of critical emerging technologies such as semiconductors.

The reason the U.S. is seeking semiconductor cooperation from Japan and the Netherlands is that these two countries possess semiconductor equipment technology. Major global advanced semiconductor equipment exporters include U.S. companies KLA, Lam Research, and Applied Materials, as well as the Netherlands' ASML and Japan's Tokyo Electron. Since semiconductors cannot be manufactured without the equipment from these companies, cooperation from Japan and the Netherlands is essential to effectively establish a containment strategy against China.

Previously, the U.S. Department of Commerce announced export control measures in October last year banning the sale of advanced U.S.-made semiconductor equipment to Chinese semiconductor manufacturers. The restrictions also include exports of semiconductor chips used in artificial intelligence (AI) and supercomputers. Subsequently, diplomatic and security channels have been activated to request allied countries' participation in the semiconductor export control measures against China.

To curb China's semiconductor rise, the U.S. has emphasized the need for South Korea's participation in addition to Japan and the Netherlands. On the 10th, U.S. Ambassador to Japan Rahm Emanuel stated in an interview with Bloomberg News, "We need to work not only through Japan but also through South Korea and the Netherlands." Given that Samsung Electronics and SK Hynix have semiconductor manufacturing plants in China, the U.S. continues to pressure South Korea to join the effort.

Going forward, the U.S. is expected to accelerate the establishment of a united front against China’s semiconductor industry by continuing working-level consultations following summits with Japan, the Netherlands, South Korea, Taiwan, and others. National Security Advisor Jake Sullivan said at a briefing on the 13th of last month, "We are consulting with allied and partner countries, including those with a deep understanding of semiconductor technology issues, about the reasons and details of our tailored restrictions," adding, "We have had such conversations not only with Japan and the Netherlands but also with other countries."

This content was produced with the assistance of AI translation services.