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ASM International CEO Benjamin Loh expects lower sales due to US restrictions on exports of chip manufacturing equipment to China.

ASM International (ASMI) is a Netherlands-based chip equipment manufacturer. CEO Benjamin Loh recently cautioned that the Netherlands and Japanese governments are under pressure from the US government to limit product exports to China.

If it were up to the US, both countries would follow the strict export conditions it recently imposed on the supply of high-tech equipment to Chinese customers. According to Loh, the government is pressuring allies to prevent exports to China across the globe.

ASMI in trouble

Loh indicated that the export restrictions are hitting ASMI where it hurts. In October, the chip machine manufacturer forecasted that exports to China would drop by 40 percent due to US limitations imposed at the time. ASMI expects that exports to China will have dropped 15 to 25 percent by the end of the year.

According to Loh, the restrictions heavily impact the company’s Chinese customers. The CEO stated that clients have great difficulty finding the equipment required for production lines. Loh added that the restrictions directly impact ASMI itself. He warned of trouble in the company’s Arizona production.

The Netherlands

Although the US government is requesting the Dutch government to impose additional export restrictions, it’s unclear whether the Netherlands will give in.

“The Netherlands will not copy US export restrictions on China one-to-one”, said Foreign Trade Minister Liesje Schreinemacher in an interview with Dutch media. “We make our own considerations — and we do so in consultation with partner countries such as Japan and the US.”

According to Schreinemacher, open trade is important, but not at any cost. She added that the Netherlands will critically assess which countries are eligible for trade.