Dutch Prime Minister Mark Rutte speaks on the phone with US President Joe Biden on June 29, 2022. The United States has been pressuring the Netherlands to block exports of high-tech semiconductor equipment to China.
Susan Walsh | AFP | Getty Images
The Netherlands announced new export curbs on advanced semiconductor equipment on Friday amid U.S. pressure to cut off China’s supply of key chip-making tools.
Dutch companies will need to apply for a license to export certain advanced semiconductor manufacturing equipment overseas under rules that will come into effect on Sept. 1, the Dutch government said.
The Netherlands is home to ASML, one of the world’s most important semiconductor companies. ASML Build the machines needed to make state-of-the-art chips.
ASML shares fell 1.5 percent on Friday.
In October, the United States introduced sweeping rules aimed at cutting off exports of key chips and semiconductor tools to China, a move analysts said could thwart Beijing’s ambitions to boost domestic technology. The U.S. has since stepped up pressure on major chipmakers, as well as allies such as the Netherlands and Japan, to impose their own export curbs.
Washington has sought to side with the Netherlands because of ASML’s key role in advanced chips. The Dutch government took a wait-and-see approach, but imposed restrictions on the export of advanced semiconductor equipment in March. Friday’s announcement finalizes those rules and provides greater clarity on what can and cannot be exported.
The law does not single out any country, nor does it explicitly name ASML.
The Dutch government said the rules apply to “a number of very specific technologies used to develop and manufacture advanced semiconductors” that could be used in areas such as military applications.
Dutch Trade Minister Liesje Schreinemacher said: “We have taken this step out of national security reasons. It is good for companies that will be affected to know what they can expect. This will give them the support they need to adapt to the new rules.” time,” in a statement.
ASML in the middle
ASML’s machines are used by advanced chipmakers such as TSMC. It makes two key tools.
The first is a so-called immersion deep ultraviolet (DUV) lithography machine, which is used to make memory chips. These chips are used in a variety of devices, from smartphones to laptops and servers, and could eventually be used in artificial intelligence applications.
The second, called extreme ultraviolet (EUV) lithography machines, are used to make more advanced chips.
ASML says it now needs to apply for a license to export its state-of-the-art immersion DUV lithography system, known as TWINSCAN NXT:2000i and subsequent tools.
Since 2018, the Dutch government has used a different set of rules to restrict the export of ASML EUV machines. However, EUV exports will now be governed by laws that come into force in September.
ASML said it could start submitting export licenses before the law came into effect, with the government approving or rejecting the applications on a case-by-case basis.
The company added that it did not expect the measures announced on Friday to have a material impact on its 2023 financial outlook.
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