US-China chip war: Netherlands moves to limit some exports

The Dutch government said it would impose restrictions on the country’s “super-advanced” chip exports, following a similar move by the United States earlier this summer.

It includes technology developed by computer chip manufacturer ASML.

ASML is one of the most important organizations in the global microchip supply chain.

Semiconductors, which power everything from cellphones to military hardware, are at the center of a bitter dispute between the US and China.

The measures “affect very specific technologies in the semiconductor production cycle,” said the country’s Trade Minister Liesje Schreinemacher.

“The Netherlands considers it important for national and international security issues that this technology be brought under control as soon as possible,” she said in a letter to lawmakers on Wednesday.

Ms Schreynemacher added that the Dutch government had taken into account “technological developments and the geopolitical context”, without naming China or ASML.

Under the new regulations, companies must obtain licenses to export technology including “the most advanced Deep Ultra Violet (DUV) immersion lithography and deposition.”

The company added: “Based on today’s announcement, we do not expect these measures to have a material impact on the financial outlook, given our expectations of the Dutch government’s licensing policy and the current market conditions.”

Lithography machines use lasers to print small patterns on silicon as part of the manufacturing process for microchips.

As of 2019, the Dutch government has stopped ASML from selling its advanced lithography machines to China.

In October, Washington announced that it would require a license to use American equipment or software for companies that ship chips to China, regardless of where they are made in the world.

The US is pushing the Netherlands and Japan to adopt similar restrictions.

Meanwhile, South Korea’s trade ministry raised concerns about US policy on semiconductors earlier this week.

“The South Korean government makes clear that the provisions of the CHIPS Act will increase business uncertainty, violate companies’ governance and technology rights, and make the United States less attractive as an investment option,” the ministry said.

South Korea is home to major microprocessor manufacturers, including Samsung, the world’s largest memory chip maker.