Why China may soon find it nearly impossible to make advanced chips

The US has led the efforts to ensure that there are chip exporter controls in place in bid to end Chinese dominance

New Delhi, Jan 27: Netherlands and Japan are all set to join the efforts led by the United States in the chip export controls to China.

Officials from the three countries are scheduled to conclude talks during which new limitations will be set on what can be supplied to Chinese companies, a Bloomberg report said.

The talks between the three sides on the matter of chip control are private. The report also also said that there is no plan for a public announcement on the restrictions which is likely to be implemented.

Report had said that Netherlands and Japanese export controls against China on the lines of Washington may be finalised by the end of January.

Prime Minister Fumio Kishida of Japan, Prime Minister Mark Rutte of the Netherlands and the US President Joe Biden had discussed plans to impose export controls to China earlier this month. Rutte had said that he is fairly confident they would get there. He made the remarks at the World Economic Forum in Davos, Switzerland.

How will this effect China:

The United States had not only limited the exports of American made machinery, but had also restricted the US citizens from working with Chinese chip makers.

While Japan and Netherlands may not go as far as the US, it would still make Beijing even more cut off from the technology. Once all three countries act in coordination, it would be difficult for China to make the most advances kinds of semiconductors.

Currently the US has the largest group of chip-gear makers. The Netherland based companies control the market for a technology that is necessary in producing the electronic components.

Japan too has companies that rival the US in chip-gear technology dominance.

Without Japan, Netherlands and the United States, China will find it impossible to build productions needed for advanced chip making.