The Dutch government recently announced that as of September, companies in the Netherlands engaged in the production of advanced semiconductor processor chip manufacturing machines will be required to obtain export licenses before selling their products overseas. This move, initially disclosed in March, is characterized by the government as a “country-neutral” policy but is widely perceived as a component of a broader international effort, primarily led by the United States, to control China’s access to critical materials used in chip production, with potential military applications.
One of the notable companies affected by these regulations is ASML, which holds the distinction of being the world’s sole producer of machines utilizing extreme ultraviolet lithography for the production of advanced semiconductor chips. Notably, the Dutch government had already imposed restrictions on ASML’s exports to China in 2019.
Liesje Schreinemacher, the Foreign Trade and Development Cooperation Minister, explained the rationale behind the measures: “We have taken this step in the interest of our national security. It is good that the companies concerned now know where they stand. This way they can adapt to the new regulations in time.”
The discussions surrounding these export regulations were not limited to the Netherlands, as Dutch Prime Minister Mark Rutte had met with U.S. President Joe Biden in January. ASML’s advanced chip machines were among the topics of conversation.
The Biden administration had previously introduced export controls in October, with the aim of limiting China’s access to advanced chips, citing concerns about potential weaponization, human rights abuses, and improvements in military logistics. The U.S. also called upon its allies, including Japan and the Netherlands, to implement similar measures. In response, China criticized the new regulations as “completely unreasonable and untenable” in a statement on its Dutch embassy’s website.
ASML, headquartered in Veldhoven, the Netherlands, had continued to export lower-quality chip lithography systems to China despite the government’s prior restrictions on advanced machines. As a result of the new regulations, the company has announced its intention to seek export licenses for all shipments of its most advanced deep ultraviolet lithography systems.
Regarding the application process, ASML stated, “The Dutch government will determine whether to grant or deny the required export licenses and provide further details to the company on any conditions that apply.” The company does not anticipate a significant financial impact from these restrictions. Minister Schreinemacher emphasized that the restrictions were carefully considered to address critical vulnerabilities without unnecessarily disrupting global chip production.
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