Exclusive: New US rule on foreign chip equipment exports to China to exempt some allies
NEW YORK, July 31 (Reuters) - The Biden administration plans to unveil a new rule next month that will expand U.S. powers to stop exports of semiconductor manufacturing equipment from some foreign countries to Chinese chipmakers, two sources familiar with the rule said.
But shipments from allies that export key chipmaking equipment - including Japan, the Netherlands and South Korea - will be excluded, limiting the impact of the rule, said the sources who were not authorised to speak to media and declined to be identified.
As such, major chip equipment manufacturers such as ASML and Tokyo Electron will not be affected. Shares in both companies surged following the news.
The rule, an expansion of what is known as the Foreign Direct Product rule, would bar about half a dozen Chinese fabs at the center of China’s most sophisticated chipmaking efforts from receiving exports from many countries, according to one of the sources.
Places whose exports would be affected would include Israel, Taiwan, Singapore and Malaysia.