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ASML facing stricter controls on exports to China from September

June 30, 2023
Photo: ASML

Chip manufacturer ASML will face strict controls on exports to China from September under new rules brought in to address security concerns.

On Friday trade minister Liesje Schreinemacher released details of the restrictions, which were the outcome of negotiations with the United States aimed at stopping China developing weapons with western technology.

From September 1, all manufacturers of semiconductors will have to apply for an export licence for all sales of specified models, allowing the government can monitor exports and intervene if necessary.

As the largest Dutch exporter of chip technology by far, ASML will be significantly affected by the new rules.

ASML said the measures would not materially affect its profits because there was enough demand from other countries to compensate for the loss of Chinese trade.

Schreinemacher said they had been drawn up in the interest of national security, to ensure that “our technology does not end up in the hands of companies or organisations that will ultimately use the technology against us”.

Reuters reported on Thursday that the US government wanted to go further and ban all exports to six of China’s largest chip factories, including SMIC.

Both the Netherlands and Japan agreed to limit their exports after coming under pressure from the Biden administration.

The Chinese embassy in The Hague issued a statement denouncing the decision as an “abuse of export control measures”.

“This kind of act will not only damage the legitimate rights of Chinese companies, but also cause losses to Dutch companies, destabilise the global industrial and supply chains and hurt the good reputation of the Netherlands in supporting free trade,” the statement said.

 

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