Dutch Government Introduces Advanced Microchip Export Restrictions

The Dutch government has announced that it will be introducing new export restrictions on advanced microchip technology from the Netherlands.[0] The move comes as part of a U.S.-led initiative to limit the supply of cutting-edge chips to China and follows similar restrictions imposed by the United States.[1]

The restrictions are focused on the most advanced deep ultraviolet immersion lithography tools, which are part of ASML's advanced chips printers portfolio.[2] ASML is the world’s only manufacturer of certain lithography systems and is the highest-valued tech company in Europe.[3]

In a letter to Dutch legislators, Foreign Trade Minister Liesje Schreinemacher expressed the government's desire to prevent Dutch technology from being utilized in military systems or weapons of mass destruction. She also stated that the goal is to “prevent Dutch goods from contributing to undesirable end use, such as military deployment or in weapons of mass destruction; prevent unwanted long-term strategic dependencies; and the maintenance of Dutch technological leadership.”[4]

ASML responded to the announcement by saying that the measures will “not have a material effect on our financial outlook” for 2023 or in the longer term.[4] However, the company confirmed that it would need to apply for export licenses to ship the most advanced DUV systems.[5]

The new export rules are targeted at Chinese efforts to overtake the U.S. and others like Taiwan, South Korea, Japan and leading European countries in the global microchips supply chain.[5] The rules are expected to be published before the summer.[3]

It is clear that the Dutch government is taking steps to ensure national security and uphold Dutch technological leadership in the semiconductor production cycle. They are also aiming to protect their markets and the strategic dependencies of their products.

0. “US-China chip war: Netherlands moves to restrict some exports” BBC, 9 Mar. 2023, https://www.bbc.com/news/business-64897794

1. “Netherlands joins US in restricting China chip making kit sales” TechHQ, 9 Mar. 2023, https://techhq.com/2023/03/chip-war-netherlands-joins-the-us-in-restricting-exports-of-semiconductor-gear-to-china

2. “Dutch slap further restrictions on chip technology exports – DutchNews.nl” DutchNews.nl, 9 Mar. 2023, https://www.dutchnews.nl/news/2023/03/dutch-slap-further-restrictions-on-chip-technology-exports

3. “China Faces More Limits on Chip-Export Gear From Netherlands” Yahoo Finance, 8 Mar. 2023, https://finance.yahoo.com/news/china-faces-more-limits-chip-195049647.html

4. “Netherlands confirms it will restrict more ASML exports to China” NL Times, 8 Mar. 2023, https://nltimes.nl/2023/03/08/netherlands-confirms-will-restrict-asml-exports-china

5. “Dutch government blocks sales of chip printing machines to China” Fudzilla, 9 Mar. 2023, https://fudzilla.com/news/56480-dutch-government-blocks-sales-of-chip-printing-machines-to-china

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