Germany may restrict export of chip chemicals to China - Bloomberg (updated)

Entegris

27/04/2023 16:10

(Adds details, background)
       FRANKFURT, April 27 (Reuters) - Germany may limit the
export of chemicals to China that are used to manufacture
semiconductors as part of the government's efforts to reduce its
economic exposure to the Asian economic superpower, Bloomberg
news reported on Thursday. 
    The move was still in the early stages of discussion but
officials taking part in the talks were aware that such a step
could damage business ties with Beijing, the report said, citing
those familiar with the matter. 
    There was no immediate confirmation from German government
ministries of the Bloomberg report, while the Chinese embassy in
Berlin did not reply to a request for comment.
    It would be the latest in steps under consideration by
Germany as it reassesses ties with China. Chancellor Olaf
Scholz's coalition government is pressing for fairer market
access to its largest trading partner but is also increasingly
wary of Beijing as a strategic rival. 
    Merck KGaA  MRCG.DE  and BASF  BASFn.DE , two German
chemicals majors who could be affected by the export curbs if
implemented, declined comment. Merck KGaA shares slipped 0.5%
after the report. 
    The quickest and most practical way to implement the export
controls would be to put the respective goods and services on
Germany's national dual-use list, one of the people in
Bloomberg's report said.
    
    TECHNOLOGICAL EDGE
    If Germany pressed ahead with the curbs, it would be
following partner countries that have taken steps with a view to
cutting China off from certain supplies for micro-chip making.
    The government in the Netherlands, home to semiconductor
equipment makers ASM International  ASMI.AS  and ASML Holding
 ASML.AS , last month laid out plans to further restrict exports
of semiconductor technology to protect national security,
joining the U.S. effort to curb chip exports to China.
     German Economy Minister Robert Habeck had in March
suggested that Berlin could impose export restrictions to China
to prevent Germany from losing its technological edge.
    "Export controls with regard to technology must be
constantly checked, constantly expanded and constantly updated,"
 a government spokesperson added at the time. 
    Scholz's government is working on a strategy paper on China
that will be rolled out later this year. Germany, and the
European Union as a whole, are pushing efforts to bring more
chip production on home soil by offering subsidies. 
    Taiwan chipmaker TSMC  2330.TW , the world's largest, is in
talks to open what would be its first European plant in Germany,
while U.S. chipmaker Intel Corp  INTC.O  announced last year 
had picked the German town of Magdeburg as the site for a huge
new 17 billion euro chipmaking complex.
    Germany has invited the Chinese premier for talks in June
and Scholz in November became the first leader from the Group of
Seven countries (G7) to visit Beijing since the COVID-19
pandemic.
    

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Germany's foreign minister: Parts of China trip 'more than
shocking'     urn:newsml:reuters.com:*:nL8N36M3F2
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 (Reporting by Ludwig Burger, Andreas Rinke, Rachel  More, Rahat
Sandhu; Writing by Matthias Williams, editing by Emelia
Sithole-Matarise)
 ((Rahat.Sandhu@thomsonreuters.com;))