The Netherlands government said Wednesday that it will restrict its semiconductor exports to China due to national security concerns. The Netherlands, a key chip manufacturer, made the move in tandem with the US, which has also banned chip exports to the Asian superpower.
Chip Export Ban
In a letter to the parliament, Dutch Trade Minister Liesje Schreinemacher announced that the restrictions will be introduced before the summer.
“Because the Netherlands considers it necessary on national security grounds to get this technology into oversight with the greatest of speed, the Cabinet will introduce a national control list,” the letter read.
The document did not name China or ASML Holding — a major supplier to semiconductor manufacturers. However, both are expected to be affected by the move.
The letter did, however, mention that one technology — “DUV” lithography systems — will be impacted. These are the second-most advanced machine systems that ASML sells to computer chip manufacturers.
#China's Foreign Ministry Spokesperson Mao Ning said the #Netherlands had been coerced into imposing export controls on high-tech chip making equipment by "a certain country". She didn't mention the #US by name. + moves were designed to "deprive China of its developmental rights"
— Stephen McDonell (@StephenMcDonell) March 9, 2023
It remains uncertain whether ASML will be able to service the more than $8.44 billion worth of DUV machines it has already sold to customers in China over the past nine years.
Schreinemacher added that the government had decided on measures “as carefully and precisely as possible ... to avoid unnecessary disruption of value chains.” “It is for companies of importance to know what they are facing and to have time to adjust to new rules.”
Japan
Meanwhile, Japan is expected to also issue a similar update on its chip export policies this week.
Speaking in parliament, Japanese Minister for Economy, Trade and Industry Yasutoshi Nishimura stated that Tokyo constantly reviews its export rules “for national security reasons,” but has not “decided anything at this point.”
Significance
Last October, the US imposed strict controls on the sale of semiconductors and the machines used to make them to China, arguing that the Asian giant could direct their use for military purposes, including hacking American codes or guiding hypersonic missiles.
In addition, Washington had long been convincing Tokyo and Amsterdam to further limit the export of semiconductor manufacturing equipment to China, arguing that the sale of such advanced machinery would make it possible for the country to someday manufacture its own versions of the advanced products.