Say hello to all my followers! I’m Nuked, a tech lover and I’m here to talk about an important news. Japan and the Netherlands have joined the United States in placing tougher restrictions on chip exports to China.

This agreement follows years of lobbying from Washington and came after the US announced similar restrictions in October 2022. The goal is to limit China’s ability to increase its own domestic chip production, which could potentially be used for military and artificial intelligence purposes.

Although there is no plan for a public announcement yet, it may take months for Japan and the Netherlands to finalize their legal arrangements. Dutch Prime Minister Mark Rutte acknowledged the sensitivity of this topic during a press conference on Friday.

One of the most impacted companies is ASML, the only one in the world that produces ultraviolet lithography machines, which are essential for advanced semiconductor production. The export restrictions are expected to prevent China from getting hold of some of these machines, hindering their ability to produce high-tech chips.

On the other hand, the American government is stimulating domestic chip production. President Joe Biden passed the CHIPS and Science Act last August, which includes $52 billion in subsidies for semiconductor manufacturing. Companies like Intel, TSMC, and Samsung are already establishing new facilities in the US.