The Netherlands has implemented export limits on advanced semiconductor manufacturing equipment in response to political pressure from the United States.
The Dutch have become engaged in political conflicts between the United States and China, with Washington seeking to prevent Beijing from using the most advanced chip technology.
US-China Chip War
The small European nation of the Netherlands is home to ASML, one of the world’s leading producers of semiconductor manufacturing equipment.
The United States is concerned that if ASML transfers its high-tech machinery to China, Chinese chipmakers could begin producing the world’s most powerful semiconductors, which have extensive military and advanced artificial intelligence applications.
Given the technological developments and geopolitical context, the government has concluded that the existing export control framework for specific equipment used in the manufacture of semiconductors must be expanded in the interest of national and international security, the country’s foreign trade minister said in a letter to parliament on Wednesday.
Although the letter does not mention China, it was written in response to pressure from the White House, which in 2022 enacted export restrictions limiting Beijing’s access to specific semiconductor components. At the time, US policymakers understood that if other nations did not enact comparable limits, export prohibitions would gradually lose their effectiveness.
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China Criticizes Politicizing Trade Relations
Since 2018, the United States has petitioned the Netherlands government to prevent ASML from shipping extreme UV lithography machines to China. China has not yet obtained ASML’s equipment.
After the Dutch government’s statement, ASML commented, “It will take time for these measures to be translated into legislation and implemented.”
The Dutch government’s licensing policy and the present market conditions, we do not anticipate that these restrictions will have a major impact on our financial outlook, Extra export controls do not apply to all immersion lithography tools, but only to those deemed most advanced, the business stated Wednesday.
ASML argued that the Dutch government had not defined high-tech equipment.
To export its immersion deep ultraviolet (DUV) lithography machine, which manufactures memory chips, a license is required. These processors, which can be found in mobile devices, PCs, and servers, could be utilized for artificial intelligence.
ASML claimed a former Chinese employee stole crucial technology secrets last month.
In semiconductor production, China is attempting to catch up to Taiwan, South Korea, and the United States.
The Chinese Ministry of Foreign Affairs stated on Thursday that it opposes the politicization of economic and trade relations and expects that the Netherlands would maintain its objectivity.
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