Expert Says U.S. Winning $574-B Chip War

Last October marked the starting gun in a new race between the US and China.

The US didn't just target the cutting-edge chips but also the tools that could be used to make them, such as the Netherlands-based ASML’s state-of-the-art lithography machine.

From the vantage point of Kevin Klyman, a technology policy researcher at Harvard University, “it has gone quite well for the Biden administration in terms of getting foreign partners on board,” Rachel Shin reported for Fortune.

He was talking, of course, about semiconductor chips. US President Joe Biden set the clock racing on Oct. 7 with a set of export controls that sought to restrict China’s procurement of highly advanced chips and the computers containing them.

They didn't just target the cutting-edge chips but also the tools that could be used to make them, such as the Netherlands-based ASML’s state-of-the-art lithography machine.

That’s a serious barrier preventing China from developing its own models of the most advanced chips.

America’s Dutch and Japanese allies have also come on board, stunning experts like Klyman. “It has been an extraordinary success beyond anyone's wildest dreams that the Netherlands and Japan have joined US export controls to the hilt,” Klyman told Fortune.

“That was not what outside analysts expected.”

In August, Biden signed a new executive order, banning US investments in three critical Chinese technology sectors: semiconductors, quantum tech, and AI. The ban, which takes effect next year, is sure to accelerate private equity and venture capital funds’ already rapid divestment from the nation.

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