Japan and the Netherlands agreed "to tighten restrictions on the export of chip manufacturing technology to Chinese companies."

"ASML is the most critical company affected by the Netherlands' restrictions. It's the only company in the world that produces so-called ultraviolet lithography machines, which are critical to the production of advanced semiconductors. CNBC previously reported that the company was already unable to ship its advanced extreme ultraviolet lithography (EUV) machine to China but that it could still ship older deep ultraviolet lithography (DUV) machines."

"On the Japanese side, the restrictions are expected to impact companies such as Nikon and Tokyo Electron."

Japan and the Netherlands join US with tough chip controls on China

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