The U.S. government is considering more severe restrictions on China's access to advanced chip making tools, which even some US allies reportedly call 'draconian.' Key proposals include applying the Foreign Direct Product (FDP) rule, pressuring allies to limit service and repair of equipment in China, and broadening the unverified list requiring licenses for certain technologies. These measures aim to hinder advancements of China's semiconductor industry.
One key proposal is application of the FDP rule, which would allow the U.S. to exert control over foreign-produced items that contain any American technology. According to a Bloomberg report, this would particularly impact companies like Tokyo Electron and ASML, restricting their ability to provide China with advanced wafer fab equipment (WFE). This measure is seen as 'draconian' by U.S. allies, but it reflects the administration's determination to restrict China's chipmaking progress.
