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(Bloomberg) -- Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under Joe Biden to limit Beijing’s technological prowess.
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Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd. and ASML Holding NV engineers from maintaining semiconductor gear in China, according to people familiar with the matter. The aim, which was also a priority for Biden, is to see key allies match China curbs the US has placed on American chip-gear companies, including Lam Research Corp., KLA Corp. and Applied Materials Inc.
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The meetings come in addition to early discussions in Washington about sanctions on specific Chinese companies, other people said. Some Trump officials also aim to further restrict the type of Nvidia Corp. chips that can be exported to China without a license, Bloomberg News has previously reported. They’re also having early conversations about tightening existing curbs on the quantity of AI chips that can be exported globally without a license, said some of the people, who asked not to be identified because the deliberations are private.
Shares in Japanese chip firms fell after Bloomberg News’s report, led by Tokyo Electron’s 4.4% slide.
The broad goal in Washington is to prevent China from further developing a domestic semiconductor industry that could boost its AI and military capabilities — and Trump appears to be picking up where Biden left off. In some areas, that means pursuing agreements with allies that never came to fruition in the prior administration. In others, it means adopting the priorities of the more hawkish members of Biden’s team, who were unable to build internal consensus on their more aggressive policy aims.
A White House representative did not immediately respond to a request for comment. The Dutch foreign trade ministry and Japanese ministry of economy, trade and industry declined to comment.
It could take months before the talks produce any new US regulations, as Trump makes staffing decisions at key federal agencies. It also remains to be seen whether allies will be more receptive to the new leadership in Washington. The prior administration had reached a handshake agreement with the Hague on limiting gear maintenance in China, but the Dutch demurred after Trump won the election, two senior Biden officials said. Without regular maintenance and servicing, chip-making equipment from ASML and others can quickly lose its ability to meet the rigorous demands of producing semiconductors.