Dutch Lawmakers question new US Export Restrictions on ASML Chip Machine

On October 25, in Amsterdam, Dutch legislators raised concerns with Trade Minister Liesje Schreinemacher regarding the unilateral imposition of new export regulations by the United States on ASML Holding's chipmaking machine destined for China. During a parliamentary debate, Minister Schreinemacher expressed the Dutch government's non-opposition to the new U.S. regulations impacting Europe's largest tech firm but emphasized the need for a ‘more collective European approach’.

Last week, the United States introduced new regulations that grant Washington the authority to restrict the export of ASML's Twinscan NXT1930Di machine, headquartered in Veldhoven, if it contains any U.S. components. This deep ultraviolet lithography machine is instrumental in producing advanced computer chips as well as mid-range and older chips, aligning with U.S. policy objectives aimed at curtailing China's technological and military progress.

ASML has committed to complying with the U.S. regulations and believes that, in practice, the new restrictions will mainly affect a limited number of Chinese facilities capable of manufacturing "advanced semiconductors."

Since 2019, the U.S. has been pressuring the Dutch government to withhold the export of its most advanced machines to China. In June, the Dutch government instituted its own licensing requirements for slightly less advanced machines, excluding the 1980di tool from these restrictions.

ASML maintains its dominance in the lithography equipment market, with major clients including TSMC , Samsung , and Intel, crucial in the chip circuitry production process. China represents ASML's third-largest market historically.

Minister Schreinemacher acknowledged that negotiations with the United States had been conducted on a bilateral basis so far but stressed the importance of coordinated efforts with other European Union (EU) member states. She mentioned discussions with fellow European officials, including European Trade Commissioner Valdis Dombrovskis and Internal Market Commissioner Thierry Breton.

Sources : Financial Times, Reuters