The Netherlands and ASML might challenge the US restrictions in order to resume exports to China. Here are the details. The competition between the US and China over chips has reached a critical point. The US has banned ASML, a Dutch-based company, from exporting to China. However, ASML plays a key role in the production of chip-making machines, effectively halting manufacturing worldwide. Now, the Dutch government has stepped in.
The Netherlands and ASML to Negotiate with the US on China Exports
Dutch Prime Minister Mark Rutte has stated that his government will protect ASML, indicating that they might overcome the export restrictions imposed by the US on China. He emphasized that they must safeguard the economic interests of both the company and the country. ASML is the world’s largest supplier of lithography systems, which are used to map tiny circuits onto semiconductors. Meanwhile, Chinese companies account for approximately 20% of ASML’s order book, making China a significant market.
However, exporting the most advanced equipment to China raises national security concerns. The fear is that the Chinese government could use this technology for military applications, which led the US to impose restrictions on certain ASML tools being exported to China.
Prime Minister Rutte emphasized that ASML is an extremely important and innovative company for the Netherlands and that its global success should not suffer due to China. He also mentioned that the government is holding talks with ASML to balance these concerns. Tightening restrictions further on ASML could drive Chinese chipmakers toward alternative suppliers, which would likely increase chip prices and disrupt production. It remains unclear whether the US will relax these restrictions.
