Netherlands, home to a critical chip firm, follows U.S. with export curbs on semiconductor tools

The Netherlands on Friday introduced new export restrictions on superior semiconductor tools amid U.S. stress to chop China off from key chipmaking instruments.

Companies within the Netherlands might want to apply for a license to export sure superior semiconductor manufacturing tools abroad, the Dutch authorities stated, below guidelines that can come into impact on Sept. 1.

The Netherlands is residence to ASML, one of the crucial essential semiconductor firms on the planet. ASML makes equipment that’s required to supply essentially the most superior chips.

ASML shares had been down 1.5% on Friday.

Last October, the U.S. launched sweeping guidelines aiming to chop off exports of key chips and semiconductor instruments to China, a transfer analysts stated may hobble Beijing’s ambitions to spice up its home expertise. Since then, the U.S. has been ramping up stress on key chipmaking nations and allies just like the Netherlands and Japan, to introduce export restrictions of their very own.

Because of ASML’s vital position in superior chips, Washington has sought to get the Netherlands on aspect. The Dutch authorities was on the fence however in March laid out restrictions on the export of superior semiconductor tools. Friday’s announcement finalizes these guidelines and offers extra readability round what can and cannot be exported.

The regulation doesn’t single out any nation nor does it identify ASML explicitly.

The Dutch authorities stated the foundations apply to a “number of very specific technologies for the development and manufacture of advanced semiconductors,” that would doubtlessly be utilized in locations like army functions.

“We’ve taken this step on national security grounds. It’s good for the companies that will be impacted to know what they can expect. This will give them the time they need to adapt to the new rules,” Dutch Trade Minister Liesje Schreinemacher stated in an announcement.

ASML’s machines are utilized by superior chip producers like TSMC. There are two key instruments it makes.

The first is a so-called immersion deep ultraviolet (DUV) lithography machine, which is used to fabricate reminiscence chips. These chips are utilized in a plethora of gadgets, from smartphones to laptops and servers, and will finally be used for synthetic intelligence functions. 

The second is known as an excessive ultraviolet (EUV) lithography machine which is used to make extra superior chips.

ASML stated it’s going to now want to use for a license to export its most superior immersion DUV lithography programs, known as the TWINSCAN NXT:2000i and subsequent instruments.

The Dutch authorities has used a unique algorithm to limit exports of ASML’s EUV machines since 2018. EUV exports nevertheless will now come below the regulation that comes into impact in September.

ASML stated it could possibly begin submitting export licenses earlier than the regulation comes into impact and the federal government will grant or deny these functions on a case-by-case foundation.

The firm added that it doesn’t count on the measures introduced on Friday to have a cloth affect on its 2023 monetary outlook.