Netherlands May Propose New Curbs On Chip-Making Equipment Sales To China

According to a media report on December 8th, the Netherlands plans to formulate new export controls on chip manufacturing equipment to China, and a deal with the U.S. could be announced next month. Dutch Trade Minister Liesje Schreinemacher said last month that the Netherlands was negotiating with the U.S. government on new restrictions on exports of semiconductor equipment to Communist China. The further export restriction, which could involve a ban on the sale of manufacturing equipment for 14nm or more advanced chips, may put Dutch regulations partly in line with US restrictions announced on October 7th. The Biden administration published export controls. The Dutch Foreign Ministry did not respond to requests for comment. Schreinemacher reportedly said the Dutch government would decide regarding ASML’s sales to China. He demonstrated that the Dutch government would defend national security and economic interests. According to the source, the Dutch government has not granted ASML, the world’s largest lithography machines manufacturer, the license to export its most advanced machines to Communist China under pressure from the U.S. as they are considered “dual use” with potential military applications. Dutch firm ASML Holdings NV is a world leader in semiconductor production equipment and had sales to customers in Communist China of more than 2 billion euros in 2021. Communist China accounted for about 15 percent of the company’s revenue last year. According to the Netherlands Central Bureau of Statistics, it is the country’s second-largest trading partner after Germany. As a result, foreign press comment that the collaboration with the US on export restriction will undoubtedly hurt ASML’s revenue. However, after weighing all sides, the Dutch government will likely make this strategic decision in line with national security and interests.