China accuses US of "technological terrorism" as chip curbs grow

China denounced US efforts to stop ASML Holding NV and Nikon Corp. from selling key chipmaking technology to the country as “technological terrorism.”

Chinese Foreign Ministry spokesman Zhao Lijian criticized the export curbs sought by Washington during a regular news briefing on July 6 in Beijing. He didn’t elaborate on whether China planned any response to the move, according to Bloomberg.

Washington’s proposed restrictions on ASML would expand an existing moratorium on the sale of the most advanced systems to China, in an attempt to thwart China’s plans to become a world leader in chip production. If the Netherlands agrees, it would broaden significantly the range and class of chipmaking gear now forbidden from heading to China, potentially dealing a serious blow to Chinese chipmakers from Semiconductor Manufacturing International Corp. to Hua Hong Semiconductor Ltd.

American officials are lobbying their Dutch counterparts to bar ASML from selling some of its older deep ultraviolet lithography, or DUV, systems, people familiar with the matter said. These machines are a generation behind cutting-edge but still the most common method in making certain less-advanced chips required by cars, phones, computers and even robots.

American officials are also trying to exert pressure on Japan to stop shipping the same technology to Chinese chipmakers, one of the people said. Japan’s Nikon competes with ASML in the area.