# Dutch responds to US China policy with a plan to curb semiconductor tech exports Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-08 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Netherlands Plans Semiconductor Export Restrictions Meta Description: The Netherlands plans new restrictions on semiconductor technology exports to protect national security, aligning with US efforts to curb chip exports to China. URL: https://financedigest.com/dutch-responds-to-us-china-policy-with-a-plan-to-curb-semiconductor-tech-exportshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-08t180849z2lynxmpej270r8rtroptp4southkorea-usa-chips-1736814353569-compressed.jpg) By Toby Sterling, Karen Freifeld and Alexandra Alper AMSTERDAM/WASHINGTON (Reuters) -The Netherlands’ government on Wednesday said it plans new restrictions on exports of semiconductor technology to protect national security, joining the United State’s effort to curb chip exports to China. The U.S. in October imposed sweeping export restrictions on [shipments of American chipmaking tools to China](https://www.financedigest.com/exclusive-foxconn-woes-could-hit-at-least-30-of-iphone-nov-shipments-from-china-plant-source.html "Exclusive: Foxconn woes could hit at least 30% of iPhone Nov shipments from China plant – source"), but for the restrictions to be effective it needs other key suppliers in the Netherlands and Japan, who also oversee key chipmaking technology, to agree. The allied [countries have been in talks](https://www.financedigest.com/as-who-pandemic-pact-talks-begin-poor-countries-on-back-foot.html "As WHO pandemic pact talks begin, poor countries on back foot") on the matter for months. Dutch [Trade Minister](https://www.financedigest.com/greg-hands-appointed-as-uk-junior-trade-minister.html "Greg Hands appointed as UK junior trade minister") Liesje Schreinemacher announced the decision in a letter to parliament, saying the restrictions will be introduced before the summer. Her letter did not name China, a key Dutch trading partner, nor did it name ASML Holding NV, [Europe’s largest tech firm](https://www.financedigest.com/analysis-rate-rises-pile-pain-on-sme-firms-in-u-s-and-europe.html "Analysis-Rate rises pile pain on SME firms in U.S. and Europe") and a major supplier to semiconductor manufacturers, but both will be affected. It specified one technology that will be impacted is “DUV” lithography, the second-most [advanced machines that ASML sells to computer chip manufacturers](https://www.financedigest.com/how-an-advanced-manufacturing-technology-can-make-your-business-more-3-dimensional.html "How an advanced manufacturing technology can make your business more 3-dimensional"). Because the Netherlands considers it necessary on national security grounds to get this [technology into oversight with the greatest of speed](https://www.financedigest.com/nvidia-unveils-latest-chips-technology-to-speed-up-ai-computing.html "Nvidia unveils latest chips, technology to speed up AI computing"), the Cabinet will introduce a national control list” the letter said. ASML said in a response it expects to have to apply for licenses to export the most advanced segment among its DUV machines, but that would not [impact its 2023 financial](https://www.financedigest.com/how-mifid-ii-will-impact-financial-advisor-communications.html "HOW MIFID II WILL IMPACT FINANCIAL ADVISOR COMMUNICATIONS") guidance. ASML dominates the market for lithography systems, multimillion [dollar machines that use powerful lasers to create the minute](https://www.financedigest.com/dollar-jumps-euro-dips-before-fed-minutes.html "Dollar jumps, euro dips before Fed minutes") circuitry of computer chips. The company expects sales in China to remain about flat at 2.2 [billion euros](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") in 2023 — implying relative shrinkage as the company expects overall sales to grow by 25%. Major ASML customers such as Taiwan Semiconductor Manufacturing Co. and Intel are engaged in capacity expansions. ASML has never sold its most advanced “EUV” machines to customers in China, and the bulk of its DUV [sales in China](https://www.financedigest.com/bentley-cruises-to-record-sales-in-2022-despite-china-drop.html "Bentley cruises to record sales in 2022 despite China drop") go to relatively less advanced chipmakers. Its biggest South Korean customers, Samsung and SK Hynix both have significant manufacturing capacity in China. The Dutch announcement leaves major questions unanswered, including whether ASML will be able to [service the more than 8 billion euros worth](https://www.financedigest.com/service-the-cfo-why-context-is-worth-80-iq-points.html "Service & The CFO: Why Context Is Worth 80 IQ Points") of DUV machines it has sold to customers in China since 2014. Schreinemacher said the Dutch [government had decided on measures](https://www.financedigest.com/factbox-government-measures-to-ease-inflation-pain.html "Factbox: Government measures to ease inflation pain") “as carefully and precisely as possible … to avoid unnecessary disruption of [value chains.”](https://www.financedigest.com/ready-for-the-new-eu-payments-value-chain.html "Ready for the new EU payments value chain?") It is for [companies of importance to know what they are facing and to have time](https://www.financedigest.com/oxford-bus-company-outsources-for-the-first-time.html "Oxford Bus Company Outsources for the First Time") to adjust to new rules,” she wrote. Japan is expected to issue an update on its chip equipment export policies as [soon as this week](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News"). (Reporting by Toby Sterling; Editing by Mark Potter, Anna Driver and Mark Porter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---