The Dutch government is expected to impose additional sanctions on its semiconductor equipment manufacturer ASML’s business in China.
Bloomberg reported on the 29th (local time), citing unnamed sources, that the Dutch government led by Prime Minister Dick Schhoff is likely not to renew ASML’s license to provide certain services and spare parts in China, which expires at the end of this year.
This decision is expected to be applied to ASML’s deep ultraviolet lithography (DUV) equipment.
ASML, the world’s No. 1 player in advanced semiconductor manufacturing equipment, is sold with a maintenance contract when exporting equipment, which is essential for maintaining equipment operation. Therefore, if maintenance is not possible, at least some equipment may become inoperable starting next year.
Bloomberg evaluated that such a move could be a big blow to China’s efforts to develop the semiconductor industry to the world-class level.
ASML and the Dutch Foreign and Trade Ministry declined to comment.
The decision by the Dutch government comes after U.S. pressure to limit the transfer of advanced semiconductor technology to China.
A senior U.S. Biden administration official has been pressuring allies to take additional measures, such as applying the Foreign Direct Products Rule (FDPR), if they do not match the U.S. in export control standards for China.
The FDPR is a rule that stipulates that even products made in other countries must obtain permission from the U.S. government when exporting if they have used any U.S.-made software, equipment, and technology.
In addition to the United States, South Korea, the Netherlands, and Japan are considered important countries in semiconductor manufacturing equipment, and the U.S. government has made allies participate in this by using the FDPR.
At the time of former Prime Minister Mark Rutter, the Dutch government has resisted U.S. pressure, arguing that it needs more time to evaluate the impact of the U.S. export ban on advanced semiconductor manufacturing equipment, but has taken a cautious approach to China since becoming Prime Minister of Slope.
He told Bloomberg News this month that the Netherlands should be “very cautious” in talks with China over national security.
Asked if the Dutch government was considering new export controls this year, he then said, “We are negotiating well with the United States and Japan and expect it to end up with good results.”
China has yet to develop equipment capable of producing state-of-the-art semiconductors, so it is relying on ASML’s DUV lithography system to advance related technologies.
JULIE KIM
US ASIA JOURNAL
