China hit hard by new Dutch export controls on ASML chip-making equipment

New restrictions announced by the Netherlands affect machines used by many semiconductor plants in China

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ASML holds a virtual monopoly on the world’s most advanced chip manufacturing equipment. Photo: Reuters

Published: 9:00am, 16 Sep 2024

Mainland semiconductor factories could face significant production challenges, as the Netherlands bans Dutch chip tool giant ASML Holding from servicing some of its most reliable equipment in China, according to industry insiders.

Earlier this month, Dutch foreign trade and development minister Reinette Klever announced a change to the country’s export controls, requiring ASML to apply for licences to sell its 1970i and 1980i immersion deep ultraviolet (DUV) machines to China-based customers.

In addition, ASML is required to apply for a licence to service, as well as provide spare parts and software updates, for immersion lithography systems previously sold to Chinese customers that have since come under restriction, according to a Reuters report, citing a Dutch government statement.

The move is intended to align Dutch rules with tightened US trade restrictions that went into effect last November, targeting China on national security grounds. The curbs by Washington covered the 1970i and 1980i. The Chinese commerce ministry objected to The Hague’s decision.

The ASML headquarters and factory in Veldhoven, Netherlands. Photo: Bloomberg

ASML, which holds a virtual monopoly in the world’s most advanced chip-making tools, said in a statement that the rule change was “technical” and not expected to have any impact on its financial outlook for this year. It declined to comment on the servicing of newly restricted equipment in China when reached by the Post.