ASML Faces Export Restrictions, Dutch Government Limits Chip Equipment Shipments to China

ASML Faces Export Restrictions, Dutch Government Limits Chip Equipment Shipments to China

In a significant development, the Dutch government has compelled ASML, a leading semiconductor production equipment manufacturer, to impose restrictions on the shipment of certain chip-making equipment to China. ASML, based in Veldhoven, Netherlands, acknowledged this restriction, stating that its “license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023 has recently been partially revoked by the Dutch government.” The decision is expected to impact a select number of customers in China.

ASML is renowned for its expertise in producing lithography machines, crucial devices that employ light to imprint patterns on silicon, a pivotal step in mass-producing microchips used in various electronic devices. The company’s dominance in the market has positioned it as a key player in the escalating global tensions surrounding China’s access to advanced technology.

This move comes after the United States intensified its restrictions on semiconductor exports to China and urged its allies to enact similar measures. The Biden administration unveiled new rules in October, expanding on export controls introduced in 2022. ASML had previously stated that these updated restrictions could affect 10% to 15% of its sales to China.

The Dutch government has been under pressure from the United States for several years to limit chip-related exports to China. ASML, being a pivotal player, has become a focal point in the ongoing technological rift between China and the West.

ASML mentioned in its statement that, following discussions with the US government, it has obtained further clarification on the scope and impact of the US export control regulations. However, the company does not anticipate the current revocation of its export license or the latest US export control restrictions to impact its financial outlook for 2023 materially.

China swiftly responded to the US-imposed restrictions, labeling them “hegemonic” and “bullying.” Foreign Ministry spokesperson Wang Wenbin asserted that such actions would undermine the global semiconductor landscape and emphasized the need for the Netherlands to protect the common interests of businesses from both countries by ensuring a non-discriminatory business environment.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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