The Dutch government has announced plans to restrict exports of semiconductor technology to China

The Dutch government has announced plans to restrict exports of semiconductor technology to China

In an effort to protect national security, the Dutch government has announced plans to restrict exports of semiconductor technology to China, joining the United States' push to curb chip exports to the country. This move marks the first step by the Netherlands, who oversee crucial chipmaking technology, towards implementing regulations suggested by the US. The aim of these rules is to hinder China's chipmaking industry and limit its military advancements.

In October, the United States introduced wide-ranging export restrictions on the shipment of American chipmaking tools to China. However, to effectively enforce these restrictions, key suppliers in the Netherlands and Japan, who produce crucial chipmaking technology, must also agree to the rules. The US has been in discussions with these allied countries on this matter for several months.

According to a letter to parliament from Dutch Trade Minister Liesje Schreinemacher, the decision to implement the restrictions on semiconductor technology exports will be made before the summer.

Dutch Trade Minister Liesje Schreinemacher has announced that the Netherlands plans to restrict exports of semiconductor technology to ensure national security, with a focus on "DUV" lithography systems, which is the second-most advanced machine that ASML Holding NV sells to computer chip manufacturers. In a letter to parliament, Schreinemacher did not mention China or ASML by name, but both will be impacted by the restrictions. The decision comes after the US imposed export restrictions on chipmaking tools in October, which requires cooperation from the Netherlands and Japan, who produce key chipmaking technology. ASML expects to have to apply for licenses to export the most advanced segment among its DUV machines, but this would not affect its 2023 financial guidance. Major questions remain unanswered, including whether ASML will be able to service the more than €8bn worth of DUV machines it has sold to customers in China since 2014. Japan is expected to announce an update on its chip equipment export policies this week.