ASML Export Rules Challenge: Dutch lawmakers raised questions on Tuesday regarding the U.S.’s unilateral imposition of new export regulations for chipmaking machines manufactured by ASML Holding (ASML.AS) destined for China.
The Netherlands’ Trade Minister, Liesje Schreinemacher, faced the scrutiny during a parliamentary debate. Schreinemacher noted that while the Dutch Cabinet was not against the new U.S. regulations affecting Europe’s largest tech firm, it should be addressed in a more collaborative European manner.
The United States recently announced new rules that grant Washington the authority to restrict the export of ASML’s Twinscan NXT1930Di machine if it contains any U.S. components. This deep ultraviolet (DUV) lithography machine has applications in producing advanced computer chips as well as mid-range and older chips.
The U.S. policy is aimed at slowing China’s technological and military progress. ASML committed to complying with the U.S. rules and believed that, in practice, the new restrictions would only impact a limited number of Chinese facilities capable of producing “advanced semiconductors.”
Also Read: Curtailing China Tech Ascent: US Regulatory Power Flexes Over Critical Equipment
U.S. pressure has been ongoing since 2019, urging the Dutch government not to export its most advanced machines to China. In June, the Dutch government introduced its own licensing requirement for slightly less advanced machines, but it doesn’t cover the 1980di tool. ASML holds a dominant position in the lithography equipment market, providing tools for chip manufacturers like TSMC, Samsung, and Intel. China is historically ASML’s third-largest market, following Taiwan and South Korea.
Schreinemacher emphasized that the Netherlands has previously negotiated restrictions with the U.S. independently but suggested that coordination with other EU member states would be more effective. She mentioned discussing the matter with her counterparts in other countries, including European Trade Commissioner Valdis Dombrovskis and Internal Market Commissioner Thierry Breton. Collaboration among EU member states would likely be a more cohesive approach to address these issues.
Our Reader’s Queries
How the new US export control rules affect the semiconductor industry?
The latest regulations have imposed stricter limitations on the already existing restrictions on semiconductor integrated circuits (ICs), also known as chips. Additionally, the rules have reinforced the restrictions on semiconductor manufacturing equipment and have included 13 Chinese companies in the Entity List.
Can ASML sell Duv to China?
Recently, the Netherlands introduced new export control regulations that restrict ASML from exporting certain types of deep ultraviolet lithography systems (DUV) to China. Lithography is a crucial aspect of chip manufacturing, as it involves printing chip designs onto wafers.
What does ASML do?
ASML is a top-tier producer of chip-making equipment. Contrary to popular belief, we don’t manufacture chips, but rather design and produce the lithography machines that are crucial to the chip manufacturing process. Our machines are an indispensable component in the production of microchips or integrated circuits (ICs).
Who are ASML’s customers?
TSMC, Intel Corporation, and Samsung Electronics Co., Ltd. are the top three clients of ASML.