‘Netherlands strengthens chip export restrictions at request of US’

‘Netherlands strengthens chip export restrictions at request of US’

Insiders say the Netherlands is poised to introduce new restrictions on chip and equipment exports to China. US and Dutch officials have been discussing the restrictions in Washington since Thursday. The negotiations are expected to conclude later today.

The outcome has not yet been confirmed by US or Dutch authorities, but insiders told Bloomberg that the Netherlands is ready to adopt export restrictions in line with the United States.

The sources added that there are no plans to publicly announce the outcome. Restrictions would be implemented quietly, Bloomberg said.

ASML will reportedly be prohibited from exporting some of its deep ultraviolet (DUV) machines to China. Organizations use DUV machines to produce various chips. Netherlands-based ASML is one of the world’s leading chip production equipment manufacturers.

Export restrictions

The United States introduced new restrictions on the export of chips and equipment to China in October. Washington says it wants to prevent China from using advanced technology for weapons and surveillance systems.

The United States called on allies and trading partners worldwide to adopt the policy. The Netherlands has resisted so far, but according to Bloomberg’s sources, that’s about to change.

Back and forth

Prime Minister Mark Rutte travelled to Washington in mid-January for talks with President Joe Biden. The topic of export restrictions was discussed, though no agreements were made.

At the time of writing, a Dutch delegation is in Washington for a second visit. This time around, the talks are expected to produce results.

In recent months, the Dutch government repeatedly claimed that the Netherlands wouldn’t budge without careful consideration. Bloomberg’s sources suggest the government will cooperate. The outcome would be a blow to ASML.

Tip: ‘Dutch ministers to discuss ASML and export bans with president Biden’