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China Accuses US of ‘Technological Terrorism’ as Chip Curbs Grow

China has accused the United States of “technological terrorism” for preventing ASML Holding NV and Nikon Corporation from selling key chipmaking technology to the country, with some still harshly criticizing Washington’s efforts.

China has accused the United States of “technological terrorism” for preventing ASML Holding NV and Nikon Corporation from selling key chipmaking technology to the country, with some still harshly criticizing Washington’s efforts.

After Bloomberg News reported, Chinese Foreign Ministry spokesman Zhao Lijian hit out at Washington that the United States is lobbying allies to stop selling the mainstream technology needed to make a large part of the world’s chips, expanding a year-long campaign to stem the country’s rise. He did not say whether China had planned any retaliatory measures in response to the move.

“This is another example of the US practice of coercive diplomacy by abusing state power and maintaining technological dominance. This is classic technological terror, ”Zhao told a regular news briefing in Beijing on Wednesday. “It will only remind all countries of the risks of technology dependence on the United States and urge them to become independent and self-reliant at a faster pace.”

The proposed ban would extend the existing moratorium on the sale of the most advanced systems to China, in an attempt to thwart the country’s plans to become a world leader in chip production. If the Netherlands agrees, it will significantly expand the range and class of chipmaking gear that is now banned in China, potentially a serious blow to Chinese chipmakers from Semiconductor Manufacturing International Corporation to Hua Hong Semiconductor Limited.

U.S. officials are lobbying their Dutch counterparts to stop ASML from selling some of its older Deep Ultraviolet Lithography, or DUV, systems, say people familiar with the matter. These machines are behind a modern generation but are still the most common method used to make some less-advanced chips needed for cars, phones, computers and even robots.

Washington is trying to put pressure on Japan to stop shipping the same technology to Chinese chipmakers, one said. Competes with ASML in Nikon area of ​​Japan.

“Chinese chipmakers have been stockpiling second-hand equipment since the Trump era,” said Amir Anwarzadeh of Asymmetric Advisors. Banning the most advanced equipment “is clearly not enough to stop China’s progress in semiconductors, especially since most of the chips used for defense purposes are using geometry that was much less advanced.”




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