The Netherlands government has announced the implementation of new restrictions on the export of key chip-making tools and technology in order to protect national security, following a similar move by the US.
The restrictions that have been in development for some time now will apply to Dutch chip equipment maker ASML which is a key company in the global microchip supply chain.
“These new export controls focus on advanced chip manufacturing technology, including the most advanced deposition and immersion lithography tools,” according to an announcement by ASML, a leading global manufacturer of semiconductor manufacturing equipment.
ASML further stated that it expects the restrictions to apply to its most advanced immersion DUV systems, but does not anticipate any material impact on its financial outlook.
Since 2019, the Dutch government has prevented ASML from selling its most advanced lithography machines to China. Lithography machines use lasers to print tiny patterns on silicon during the manufacturing process of microchips and are crucial to the development of advanced chip technology.
The Dutch trade minister Liesje Schreinemacher also assured that the restrictions will affect “very specific technologies in the semiconductor production cycle”.
China’s reaction
In response, China has launched a formal complaint against the move, stating that it hopes the Netherlands will not follow in the footsteps of other countries that have abused export control measures. A spokeswoman for the Chinese Foreign Ministry, Mao Ning, said that the Dutch move aimed to deprive China of its right to develop microchips, and called on the Netherlands to refrain from implementing abusive export control measures.
Tech hegemony
The US has been pushing the Netherlands and Japan to adopt similar restrictions, and in October 2022, it announced that it would require licenses for companies exporting chips to China using US tools or software, regardless of where they are made in the world.
In response to export controls imposed by Washington, China has frequently labeled the US a “tech hegemony”.
Semiconductors are at the heart of the dispute between the US and China, as they are used to power everything from mobile phones to military hardware.
A Victory for the US
The Dutch restrictions have been seen as a victory for the US and a setback for China in their ongoing tech war. Dexter Roberts, a senior fellow at the Atlantic Council think tank, said that the decision was “a real step forward, a real victory for the US and also very bad news for China”.