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The Netherlands Imposes Broader Export Restrictions on Semiconductor Equipment

by Geraldine S.
09/06/2024
in Export Controls

The Hague—The Dutch government announced on Friday that it will implement expanded restrictions on exports of semiconductor-making machines produced by leading industry company ASML. This move aligns with existing US export regulations on technology at the heart of global trade concerns. The new measure, which will take effect on Saturday, allows ASML to apply directly for export licenses through Dutch authorities, rather than through the US government, when exporting equipment outside the European Union.

Previously, certain ASML equipment was under US export controls, requiring the company to seek licenses from US authorities. The Netherlands had not applied these restrictions until now. Foreign trade minister Reinette Klever explained that the decision was made for security reasons, stating, “Technological advances have increased security risks associated with the export of specific manufacturing equipment, particularly in the current geopolitical context.”

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The expanded restrictions will apply to a wider range of equipment, in addition to the controls that have been in place since September 2023. ASML commented that the changes will “harmonize the approach for issuing export licenses” and do not expect any impact on their financial outlook for 2024 or long-term projections. ASML shares were down 1.4 percent on the Amsterdam stock exchange following the announcement.

Both the Netherlands and Japan have previously joined the United States in placing export restrictions on advanced chip-making equipment, with a focus on limiting access to technology that could be used in high-tech military applications. The Dutch government highlighted that the equipment affected by the new rules can be used to produce advanced semiconductors, which play a significant role in military technologies, noting that “uncontrolled exports of this equipment pose risks to national security.”

Discover the latest in supply chain logistics news on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#TechRegulations #SemiconductorNews #GlobalTradeUpdate #ExportControls #TechnologySecurity

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