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In late August, it is said that the Netherlands mulls to ban ASML, the country’s semiconductor equipment giant, from conducting equipment maintenance and providing related backup components in China. Now the latest regulation has been revealed, as the Dutch government announced last Friday the expansion of export restrictions on advanced semiconductor manufacturing equipment, which covers two of ASML’s DUV immersion lithography systems, according to a report by CNBC.
The new export control rule, which took effect on September 7th, indicates that ASML will now have to apply for licenses with the Hague rather than the US authority for some of its machines, as the Dutch government regards these curbs as a critical measure for national security, and attempts to gradually take the initiative rather than following the U.S., a report by Bloomberg notes.
According to the official announcement made by ASML, the new rule will require its TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems to obtain a license from the Dutch government before being exported. The Dutch export license requirement is already in place for ASML’s TWINSCAN NXT:2000i and subsequent DUV immersion systems.
Regarding ASML’s sales in lithography units in the second quarter of 2024, China emerged as the largest market, as it contributed 49% of the revenue, higher than South Korea’s 28% and Taiwan’s 11%.
Interesting enough, ASML refers to the updated license requirement as “a technical change,” and is not expected to have any impact on the company’s financial outlook for 2024 or for its longer-term scenarios.
The latest move from the Dutch government is less harsh than the rumors earlier, which indicated that the Netherlands might ban ASML from conducting equipment maintenance and providing related backup components in China. The measure, if implemented, would be a heavy blow to China’s semiconductor industry, especially on the development of advanced nodes.
In response, China has expressed “dissatisfaction” with the Dutch government’s decision to expand export controls on ASML chipmaking equipment, according to the statement by the Chinese commerce ministry on Sunday, cited by Reuters.
The ministry urged the Dutch government not to misuse export controls, to avoid actions that could harm Sino-Dutch cooperation in the semiconductor industry, and to protect the “shared interests of Chinese and Dutch enterprises,” according to Reuters.
Beijing has consistently been criticizing Washington’s approach of pressuring allies like the Netherlands and Japan to implement export controls aimed at limiting China’s access to advanced chips and chipmaking equipment.
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(Photo credit: ASML)
