Netherlands to restrict semiconductor machine exports after U.S. pressure

“Provided the technological developments and the geopolitical context, the federal government has occur to the summary that the existing export control framework for unique machines utilized for the manufacture of semiconductors demands to be expanded, in the pursuits of nationwide and worldwide protection,” the country’s international trade minister, Liesje Schreinemacher, explained in a letter to parliament Wednesday.

Despite the fact that the letter does not reference China, it comes just after force from the White Residence, which in 2022 imposed export controls that restrict Beijing from accessing specific semiconductor chips. At the time, American officials regarded that if other nations did not impose very similar restrictions, the export controls would reduce efficiency about time.

Considering the fact that 2018, the U.S. has reportedly been inquiring the Dutch federal government to cease ASML shipping its extraordinary ultraviolet lithography devices to China. ASML has not shipped the devices to China so significantly.

In the wake of the Dutch government’s announcement, ASML reported in a statement that, “it will consider time for these controls to be translated into legislation and acquire result.”

“Centered on modern announcement, our expectation of the Dutch government’s licensing policy, and the current market place problem, we do not anticipate these actions to have a substance influence on our money outlook,” the firm mentioned Wednesday, introducing that “the extra export controls do not pertain to all immersion lithography instruments but only to what is known as ‘most advanced’.”

ASML said it is not obvious what the Dutch federal government suggests by the “most sophisticated” machines.

However, it reported the rules imply that it will will need to implement for a license to export its so-called immersion deep ultraviolet (DUV) lithography device, which is used to manufacture memory chips. These chips are utilised in a myriad of devices, from smartphones to laptops and servers, and could finally be utilised for synthetic intelligence purposes. 

Final month, ASML reported that a previous personnel in China experienced misappropriated information similar to its proprietary technology.

China has been operating to bolster its domestic semiconductor marketplace, but it remains considerably guiding the likes of Taiwan, South Korea and the U.S.

The Chinese Ministry of Foreign Affairs explained Thursday that it opposes the politicization of financial and trade cooperation and hopes that the Netherlands maintains an aim stance, in accordance to Reuters.

Speaking on CNBC’s “Road Symptoms Europe” on Thursday, Anna Rosenberg, head of geopolitics at the Amundi Institute, explained that the most up-to-date announcement from the Netherlands is “a large offer” for President Joe Biden.

“The U.S. has been attempting to get the EU to aspect with its procedures in direction of China for a though, and it has substantially a lot more leverage with the EU now than prior to the [Ukraine] war, simply because the EU is now rather a lot entirely dependent on its security on the U.S.,” she extra.