The Trump administration is pursuing tighter controls on semiconductor exports to China. This involves encouraging Japan and the Netherlands to align with US restrictions and potentially implementing tighter controls on Nvidia chip exports.
Furthermore, the US is assessing stricter measures regarding Chinese manufacturers SMIC and SCMT. Meetings have taken place between US officials and their counterparts from Japan and the Netherlands to prevent engineers from Tokyo Electron and ASML from servicing semiconductor equipment in China.
Washington is striving to limit Beijing’s access to advanced chip technology, not just by tightening its own export controls but by urging allies to follow suit. Aligning policies with Tokyo and The Hague would make it far harder for Chinese firms to secure essential semiconductor components. Restricting Nvidia chip exports is another move being considered, particularly as these components play a vital role in artificial intelligence and high-performance computing.
Scrutiny extends beyond restricting physical goods. Officials are questioning how much technical support Chinese companies should receive. Talks with Japan and the Netherlands indicate an effort to cut off maintenance services for machines essential to Beijing’s chip production. If engineers from Tokyo Electron and ASML are prevented from servicing equipment, this could hamper operations at key Chinese manufacturers, including SMIC and SCMT.
Such measures would create further bottlenecks for China’s push toward semiconductor self-sufficiency. Without access to Western machinery and expertise, producing advanced chips becomes far more difficult. While Beijing has been investing heavily in domestic alternatives, restrictions on maintenance and technical assistance could slow progress.
For markets, these developments carry weight. Regulations affecting Nvidia chip exports would have direct implications for technology companies relying on these components. Any shift in trade restrictions will influence supply chains, affecting chipmakers and the industries depending on them.
Geopolitical tensions are driving these regulatory efforts. Policymakers in Washington view advanced semiconductors as a matter of national security, not just trade. The reliance on Japanese and Dutch cooperation shows that isolating China’s access to these technologies is not something that can be done unilaterally. It requires coordination among countries holding key positions in the semiconductor industry.
Price action will reflect how traders assess these policy manoeuvres in the coming weeks. As discussions continue, company valuations could move based on expectations of stricter restrictions or policy shifts. Market participants should follow developments closely to gauge any further steps taken by Washington, The Hague, or Tokyo.
