Nandini Roy Choudhury, writer
Brief news
- The Dutch government is extending export restrictions on advanced semiconductor manufacturing equipment, including ASML’s machinery.
- The Netherlands is taking on the role of the United States in regulating the export of ASML’s machinery to other countries.
- The Dutch government cites security reasons and elevated security risks associated with the export of this equipment as the basis for the restrictions.
Detailed news
The Dutch government announced on Friday that it is extending export restrictions on advanced semiconductor manufacturing equipment, which will include the licensing requirements of ASML’s machinery.
The changes imply that the Netherlands is essentially assuming the role of the United States in regulating the machinery that ASML is permitted to export to other countries.
The Netherlands, like other nations, regards these restrictions as a critical national security requirement.
“I have made this decision for security reasons.” Reinette Klever, the Netherlands’ minister of foreign trade and development, stated in a statement that technological advancements have resulted in elevated security risks associated with the export of this particular manufacturing equipment, particularly in the current geopolitical environment.
In a separate statement issued on Friday, ASML stated that the most recent government initiatives represent a “technical change” that is not anticipated to affect its financial outlook for 2024 or its “longer-term scenarios.”
The Dutch government implemented its initial significant export restrictions on advanced semiconductor equipment exports last year, which resulted in the expansion of control.
The Netherlands is the location of the headquarters of ASML, one of the most significant semiconductor corporations in the globe. The organization manufactures apparatus that is essential for the development of the most sophisticated processors.
The most recent actions of the nation followed the implementation of new export controls on critical technologies, such as semiconductor products and quantum computing, by the United States on Friday.
The United States implemented comprehensive regulations in late 2022 with the objective of prohibiting the export of critical semiconductor tools and processors to China. The goal was to encourage other countries to adopt similar measures. The United States has exerted pressure on countries such as the Netherlands and others to increase export restrictions on critical chipmaking instruments. The Netherlands has become a primary focus for U.S. policymakers due to ASML’s critical role in advanced semiconductors.
The government did not specify any specific countries that would be the primary focus of the chip restrictions in its most recent statement. Rather, it stated that the regulations apply to exports from the Netherlands to destinations outside of the European Union.
“The Netherlands occupies an unparalleled, pioneering position in this domain.” We take this responsibility seriously, as it involves specific obligations. It is imperative that the Dutch semiconductor industry be informed of its potential outcomes. Klever stated, “We have implemented a methodical and focused approach to mitigate the disruption to global trade flows and value chains.”
Dutch licenses are necessary for the use of ASML instruments.
ASML produces two distinct varieties of tools: a deep ultraviolet (DUV) lithography machine and an extreme ultraviolet (EUV) lithography machine.
In order to manufacture the most advanced semiconductors, chipmakers such as Taiwan Semiconductor Manufacturing Co. must employ EUV lithography equipment.
DUV lithography equipment are employed to produce memory circuits, which are incorporated into a variety of devices, including laptops and smartphones.
Last year, the Dutch government implemented restrictions on both sets of devices. According to ASML, the TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems will now necessitate a license from the Dutch government to be exported, rather than from Washington, as a result of the rule changes released on Friday.
Source : CNBC News
