The Netherlands To Restrict Computer Chip Equipment Exports To China

Uploaded on 2023-07-08 in INTELLIGENCE-Hot Spots-China, FREE TO VIEW, BUSINESS-Services-IT & Telecoms

The Dutch government has announced new rules restricting exports of certain semiconductor manufacturing equipment, following US pressure to cut China off from key chipmaking tools.

These restrictions will require companies that make advanced chipmaking equipment to seek a license before they can export it, are expected to become effective on September 1st.

ASML a Dutch company that is a key equipment supplier to computer chip makers, said it did not expect the new rules to have a material impact on its business.

The Dutch government did not explain its reasons for restricting Chinese semiconductor equipment though it said it had taken the steps on national security grounds. The Chinese government responded saying the decision was "not in the interests of any party" and would impact chip production and supply chains. Mao Ning, China's foreign ministry spokeswoman, said China opposed the US's "abuse of export controls" and its "use of various pretexts to win over and coerce other countries into imposing a technological blockade against China".

The US is engaged in an arms race with China over control of the supply of semiconductors, especially certain computer chips used for supercomputing and artificial intelligence.

Such chips have created a $500bn (£395bn) industry that is expected to double by 2030 and it is thought that whoever controls the supply chains, the network of companies and countries that make the chips, has the key to being an unrivalled superpower. In October last year, the US imposed sweeping export restrictions on shipments of American chipmaking tools to China to prevent its technology from being used to strengthen it's military.

For the US restrictions to be effective it needs other key suppliers, such as the Netherlands, to join forces. The Dutch government said that from 1 September, the export of "certain advanced semiconductor manufacturing equipment" would have to be authorised.

The move will particularly affect ASML, the nation's largest company and the world's largest and most advanced chip equipment maker. ASML said in a statement that it would "continue to comply with applicable export regulations, including Dutch, EU and US regulations". It added that it did not expect the measures to have a "material impact" on its finances.

Liesje Schreinemacher, Minister for Foreign Trade and Development Co-operation, said because of the way certain chips can be used, they "can make a key contribution to certain advanced military applications... The uncontrolled export of goods and technologies therefore potentially poses national security risks," she added.

"The Netherlands bears an extra responsibility in this regard because this country has a unique, leading position in this field. Like the export control policy in general, this additional step is country-neutral."

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