The Trump administration is working on stronger semiconductor restrictions and asking its main allies to enforce tougher rules against China’s chip industry. The administration’s current plans demonstrate a continuation of the technological limitation strategies established during President Joe Biden’s term.
Representatives from the Trump administration recently held discussions with Japanese and Dutch officials about restricting Tokyo Electron and ASML Holding engineers from maintaining semiconductor equipment in China according to sources familiar with the situation. Biden prioritized the objective to urge main allies to synchronize their China technology restrictions with U.S. limitations placed on American semiconductor firms including Lam Research, KLA, and Applied Materials.
Sources have reported that discussions about targeting Chinese companies with sanctions began in Washington before these meetings were held. According to unnamed sources who asked to stay confidential because of the sensitive nature of the matter some officials from the Trump administration want to further restrict the export of Nvidia chips to China which would require a license for both quantity and type.
Washington’s primary objective is to block China from developing its semiconductor industry since doing so would boost its AI and military technology. Trump demonstrates ongoing commitment to the initiatives begun by Biden. In some instances, this involves pursuing agreements with allies that were not finalized during the previous administration. In other cases, it means adopting the more aggressive policy goals of the more hawkish members of Biden’s team, who were unable to secure internal consensus.
A White House representative has yet to provide a response to the request for comment. Both the Dutch Foreign Trade Ministry and the Japanese Ministry of Economy, Trade and Industry have chosen not to offer any comments at this time.
Trump’s administration is making staffing decisions at key federal agencies, which may take months to result in new U.S. regulations. There is uncertainty as to whether allies will be more receptive to the new leadership in Washington. A preliminary agreement had been reached with the Hague regarding equipment maintenance in China during the previous administration, but the Dutch have hesitated after Trump’s election, according to two senior Biden officials. Without regular maintenance and servicing, chip-making equipment from ASML and other companies can quickly become incapable of meeting the rigorous demands of semiconductor production.
