The Dutch government announced new export control regulations on Friday (September 6), expanding export controls on ASML chip production equipment.
The new regulations issued on Friday apply to the export of ASML’s older model deep ultraviolet immersion lithography systems to China, and will come into effect on September 7.
Like other countries, the Netherlands sees these restrictions as a crucial national security requirement.
“I made this decision out of security considerations,” said Dutch Minister of Foreign Trade and Development Reinette Klever in a statement. “We see that technological advancements have increased security risks associated with the export of this specific manufacturing equipment, particularly in the current geopolitical context.”
In a statement released on Friday, ASML stated that the government’s latest measures mark a “technical change” and are not expected to have any impact on ASML’s financial prospects in 2024 or beyond.
ASML mainly produces two types of chip manufacturing tools, extreme ultraviolet (EUV) lithography machines and deep ultraviolet (DUV) lithography machines.
EUV is used by chip manufacturers such as TSMC to produce high-end chips. DUV lithography machines are used to produce other types of semiconductors such as memory chips, which are widely used in products like laptops and smartphones.
Under pressure from the United States, the Dutch government has not allowed ASML to deliver its best EUV lithography machines to Chinese customers, while starting in September 2023, export licenses were required for the NXT:2000 series and more advanced DUV tools.
In October 2023, the US unilaterally began restricting the export of ASML’s 1970i and 1980i DUV immersion lithography systems because these tools contain some US components. In recent years, the US has intensified its restrictions on chip exports to China to prevent the Chinese Communist Party from acquiring advanced chips, thereby strengthening China’s military capabilities.
The export controls announced by the Dutch government this Friday involve the 1970i and 1980i DUV immersion lithography systems. After September 7, ASML will need permission from the Dutch government rather than the US government to export these two chip manufacturing tools to China.
ASML is at the center of the US-China chip war. Lithography technology is essential for chip manufacturers, and ASML is currently the only manufacturer in the world producing advanced lithography machines used for producing high-end chips for various applications from electric vehicles to military equipment.
The day before the Dutch government made this decision, on Thursday (September 5), the US announced new control measures for advanced technologies, including quantum computing, in coordination with the restrictions already imposed by international partners.
ASML’s CEO stated on Wednesday that China’s progress in chip manufacturing is slowing down due to the implemented restrictions.
(Translated and adapted from reports by Reuters and CNBC.)