The Dutch Prime Minister Dick Schoof stated on Friday (August 30th) that the Dutch government will consider the economic interests of ASML when deciding to further tighten export rules for chip manufacturing equipment to China.
According to Reuters, Schoof mentioned in response to questions about potentially imposing further restrictions on ASML’s exports and services to China, “We are in negotiations, good negotiations. We are also very concerned about ASML’s economic interests, which need to be weighed against other risks, and economic interests are extremely important.”
He added, “For the Netherlands, ASML is a particularly important industry for innovation and should not be impacted under any circumstances as it would harm ASML’s global standing.”
Bloomberg reported on Thursday (August 29th) citing sources familiar with the matter that the government led by Schoof might not renew certain licenses for ASML to provide services and parts in China, with these licenses set to expire by the end of this year. The decision is expected to cover the company’s high-end Deep Ultraviolet lithography machines.
This would be a significant blow to China’s efforts to develop its domestic chip industry.
Schoof did not comment on Bloomberg’s report on Thursday.
After previous rounds of restrictions, Chinese chip manufacturers mostly purchased ASML’s older equipment that is not subject to export controls, specifically designed for producing chips with older technologies which remain crucial in various industrial sectors such as automobiles, industrial machinery, and home appliances.
The Netherlands has close ties with the United States and is a steadfast supporter of NATO. The Netherlands is providing F-16 fighter jets to Ukraine and is discontent with China’s support for Russia in the conflict in Ukraine.
Former Dutch Prime Minister Mark Rutte, during his visit to China in March, called on China to take more actions to prevent Russia from acquiring dual-use military-civilian materials, which may include equipment from ASML and chips produced using this equipment.
The United States and China have been engaged in a technological war for several years, with the U.S. government striving to prevent China from manufacturing more advanced chips to bolster its military capabilities and surveillance capabilities over its people.
The Netherlands has consistently aligned its export restrictions with the United States. In October 2023, the U.S. announced regulations prohibiting American AI chip manufacturer Nvidia from exporting advanced chips to China. The Dutch government followed suit and revoked some licenses for ASML to export equipment to China on January 1st, including lithography machines. The U.S. government, in the pursuit of rigor, continued to tighten restrictions on exports to China thereafter.