Netherlands Introduces Export Licensing for Semiconductor Equipment

The Dutch government has announced new regulations that will require companies manufacturing advanced semiconductor equipment to obtain a license prior to exporting. Set to be implemented from September 1, this decision aligns with broader international efforts to regulate the export of technology that could potentially have military applications.

Trade Minister Liesje Schreinemacher stated that this step was taken to safeguard national security. She emphasized that the new rules would impact only a select number of companies and specific product models, without explicitly naming China as a target.

This move by the Netherlands is part of a larger initiative, reportedly agreed upon by the United States and its allies, including Japan and the Netherlands. These countries, known for their robust chip equipment industries, are working to enhance restrictions on semiconductor technology exports. The objective is to limit the capacity of certain nations, implicitly including China, to produce advanced semiconductor chips.

Earlier, in late March, Japan’s Ministry of Economy, Trade and Industry announced it would implement export controls on six categories of chip manufacturing equipment, effective in July. These categories include cleaning, deposition, lithography, and etching equipment. The Japanese regulation necessitates export permissions for all regions without singling out any specific country.

Dutch officials have previously clarified that the intent of these new controls is to address national security concerns, rather than to provide an advantage to U.S. chip-related companies.

China has expressed strong opposition to these new export restrictions by the Netherlands, labeling them as an outcome of “bullying and hegemony” by Western countries. China has set a strategic goal of achieving 70 percent self-sufficiency in semiconductors by 2025.

ASML, a leading Dutch semiconductor equipment supplier, stated that these new rules would not significantly alter its financial projections. The company clarified that certain models in its “DUV” product line, used in chip manufacturing, would now require a license for export. However, ASML anticipates that the impact on its financial forecasts will be minimal. It’s noteworthy that ASML’s most advanced EUV machines have never been shipped to China.

Following the announcement, ASML’s stock saw a 3.6 percent decrease, while ASM International, a smaller competitor, experienced a 1.8 percent dip.

The United States had previously imposed export restrictions on shipments of U.S. chipmaking tools to China from companies such as Lam Research and Applied Materials, citing national security reasons. This U.S. policy has been part of wider diplomatic tensions involving various technology and security issues between China and the United States.

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