Netherlands blocks ASML from exporting chipmaking machines to China following US export restrictions

In a major development that will further strain the already tenuous relationship between China and the US, Dutch chip machine manufacturer ASML has revealed that the Government of the Netherlands has partially revoked its export license, which is impacting the shipment of specific chip-making equipment to China.

This move comes in response to US export restrictions, further complicating the already tense dynamics of international, as per a Reuters report.

The Veldhoven-based company highlighted that the affected shipments notably include specific lithography systems crucial for chip manufacturing.

Specifically, the Dutch government has recently decided to partially revoke the license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023, causing ripples among some major players in China’s domestic chip designing and manufacturing industry.

ASML, renowned for dominating the market in lithography systems that utilize lasers in chip circuitry creation, assured stakeholders that the revocation and the recent US export control restrictions are not anticipated to have a significant impact on the company’s financial outlook for 2023.

China, in recent years, has emerged as ASML’s third-largest market, trailing behind Taiwan and South Korea. Notably, in the third quarter of 2023, China claimed the top spot, contributing to 46 per cent of the company’s sales, as reported by Reuters.

The situation unfolded in 2023 when the United States introduced new rules, granting Washington the authority to restrict the export of ASML’s “Twinscan NXT1930Di” machine if it contained any US parts.

Subsequently, Dutch lawmakers raised concerns about the unilateral imposition of rules by the United States regarding the export of another ASML chipmaking machine to China.

“In recent discussions with the US government, ASML has obtained further clarification of the scope and impact of the US export control regulations,” stated ASML in a released statement.

“ASML is fully committed to complying with all applicable laws and regulations, including export control legislation in the countries in which we operate,” the statement read. The semiconductor equipment maker reaffirmed its dedication to adhering to international laws governing trade and export controls.

(With inputs from agencies)

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