The Netherlands has announced the introduction of new regulations that limit the export of specific semiconductor manufacturing equipment. While pressure from the United States to curb the sale of computer chip technology to China exists, the Dutch government has cited national security as the primary reason for these restrictions.
The Chinese government has responded, stating that the decision is not in the interest of any party and will impact chip production and supply chains. Mao Ning, China’s foreign ministry spokeswoman, expressed opposition to the US’s abuse of export controls and its use of various pretexts to create a technological blockade against China.
The US and China are engaged in an arms race to control the supply of semiconductors, particularly computer chips used for supercomputing and artificial intelligence. The industry surrounding these chips is valued at $500 billion (£395 billion), expected to double by 2030. The control of supply chains, which involves a network of companies and countries that produce chips, is seen as a key factor in becoming an unrivaled superpower.
In October of the previous year, the US imposed significant export restrictions on American chipmaking tools to prevent the strengthening of Beijing’s military through its technology. However, the effectiveness of these restrictions relies on the participation of other crucial suppliers such as the Netherlands.
Starting from September 1, the Dutch government will require authorization for the export of certain advanced semiconductor manufacturing equipment. This move will particularly impact ASML, the largest Dutch company and the world’s leading and most advanced chip equipment manufacturer. ASML has stated that it will continue to comply with relevant export regulations, including those of the Netherlands, the European Union, and the United States. The company does not anticipate a significant financial impact from these measures.
Liesje Schreinemacher, the Minister for Foreign Trade and Development Cooperation, emphasized that certain chips can contribute to advanced military applications and that uncontrolled exports of such goods and technologies pose potential national security risks. The Netherlands, given its leading position in the field, holds an additional responsibility. The country-neutral measure is in line with the general export control policy.