US-China Chip War Netherlands Moves to Restrict Some Tech Exports

Introduction

The Dutch government has announced that it will impose restrictions on the export of its “most advanced” microchip technology in order to protect national security. This move follows a similar restriction imposed by the US. The restrictions will include products by chip equipment maker ASML, which is a key player in the global microchip supply chain. China has responded to this development by filing a formal complaint against the Netherlands, expressing hope that the country will not follow the “abuse of export control measures” by certain countries.

China’s Response and the US-China Tech Dispute

China has criticized the US for imposing export controls, often referring to it as a “tech hegemony.” The dispute between the US and China revolves around semiconductors, which are crucial components in various devices ranging from mobile phones to military hardware. The Chinese Foreign Ministry has commented on the Dutch government’s decision, stating that it aims to deprive China of its right to develop. Dexter Roberts, a senior fellow at the Atlantic Council think tank, believes that the Netherlands’ decision is a victory for the US and bad news for China, further worsening the already strained US-China relations.

Dutch Restrictions on Microchip Technology Exports

The Dutch trade minister, Liesje Schreinemacher, has stated that the restrictions will apply to specific technologies in the semiconductor production cycle. The Netherlands considers it necessary to bring this technology under control for national and international security reasons. However, the minister did not explicitly mention China or ASML in her statement. Under the new rules, companies will need to obtain licenses to export technology, including the most advanced Deep Ultra Violet (DUV) immersion lithography and deposition. ASML expects the restrictions to apply to its most advanced immersion DUV systems, but the company does not anticipate these measures to have a significant impact on its financial outlook.

ASML’s Role and Previous Restrictions

ASML is a key player in the microchip supply chain and its lithography machines are crucial in the manufacturing process of microchips. Since 2019, the Dutch government has prevented ASML from selling its most advanced lithography machines to China. The US has been urging the Netherlands and Japan to implement similar restrictions. South Korea has also raised concerns about the US policy on semiconductors, as it is home to major microprocessor manufacturers, including Samsung, the world’s largest memory chip maker.

Conclusion

The Dutch government’s decision to restrict the export of its most advanced microchip technology is a significant development in the ongoing US-China chip war. It is seen as a victory for the US and a setback for China. The restrictions will impact ASML, a key player in the global microchip supply chain. China has filed a formal complaint against the Netherlands, criticizing the move as an abuse of export control measures. The US has been pushing for similar restrictions in other countries, while South Korea has expressed concerns about the US policy on semiconductors. The semiconductor industry remains a focal point in the escalating tech dispute between the US and China.