On September 10, the Dutch government clarified that ASML, a Dutch semiconductor equipment manufacturer, needs to obtain a license to provide spare parts and software updates for computer chip manufacturing equipment previously sold to Chinese customers but now subject to export restrictions.
According to a statement provided by the Dutch Ministry of Foreign Affairs to Reuters, this includes two ASML chip production equipment models that were announced last Friday to be added to export controls. This move was made by the Netherlands to align its policies with the United States.
The two chip production equipment models are the 1970i and 1980i DUV tools, which are older models of ASML’s deep ultraviolet immersion lithography systems.
Prior to this clarification by the Dutch government, there was confusion surrounding whether the country planned to impose additional service restrictions on ASML.
“Services… will be subject to review according to licensing requirements, including… components, software, and technology developed specifically for the equipment,” the Dutch Ministry of Foreign Affairs said in a statement.
The statement also emphasized that as of September 6, 2024, the scope of exports requiring a license has been expanded to include ASML’s 1970di and 1980di machines.
ASML stated last Friday that they expect this change will not have any impact on the company’s financial prospects in 2024 or beyond but declined to comment further.
In response, China expressed dissatisfaction with the Dutch government’s expansion of export controls on ASML for shipments to China.
Like other countries, the Netherlands views export restrictions to China as a critical national security requirement. Dutch Minister for Foreign Trade and Development, Reinette Klever, stated in a release last Friday that the decision was made out of safety considerations.
“We see that technological advancements have increased security risks associated with exports of this particular manufacturing equipment, especially given the current geopolitical context,” Klever said.
ASML is at the center of the US-China chip war. Lithography technology is crucial for chip manufacturers, and ASML is the only global producer of extreme ultraviolet (EUV) equipment necessary for producing the most advanced chips used in various applications from electric vehicles to military equipment.
While the DUV system is not as advanced as EUV, the Dutch government considers DUV technology to be “dual-use,” meaning it can be utilized for both commercial and military purposes. The Netherlands began imposing export controls on ASML’s NXT:2000 series and more advanced DUV tools starting in September 2023.
Following the export restrictions in the Netherlands in 2023, ASML informed Chinese customers not to expect import licenses for advanced DUV tools from ASML after January 1, 2024.
ASML CEO Christophe Fouquet remarked at an event in New York on September 4 that the US government is expected to continue pushing for more restrictions on ASML exports to China.
“It is a bipartisan issue of concern, so I believe that regardless of what happens in November, this will continue,” he said, referring to the US presidential election in November.