Netherlands expands export curbs on chip tools with more ASML equipment impacted

The Dutch government on Friday announced it is expanding export restrictions on advanced semiconductor manufacturing equipment, bringing more of ASML‘s machines under curbs.

More types of chipmaking tools are now subject to requirements that mean companies will have to apply for a license from the Dutch government to export their gear out of the country.

Like other countries, the Netherlands sees such curbs as a key national security requirement.

“I’ve made this decision for reasons of security. We see that technological advances have given rise to increased security risks associated with the export of this specific manufacturing equipment, especially in the current geopolitical context,” Reinette Klever, minister of foreign trade and development for the Netherlands, said in a statement.

The expanded restrictions come after the Dutch government last year introduced its first major export restrictions on advanced semiconductor equipment exports.

ASML, one of the most important semiconductor companies in the world, is headquartered in the Netherlands. The firm makes machinery that is required to produce the most advanced chips.

The country’s latest moves come after the U.S. on Friday rolled out new export controls on critical technologies, including quantum computing and semiconductor goods.

In late 2022, the U.S. introduced sweeping rules aiming to cut off exports of key chips and semiconductor tools to China and sought to get allied countries to follow suit. Washington has pressured countries like the Netherlands and others to ramp up export curbs on key chipmaking tools. ASML’s critical role in advanced chips has made the Netherlands a key focus for U.S. policymakers.

In its latest statement, the government did not name any specific countries that would be of particular focus for the chip restrictions, stating instead that the rules apply to exports from the Netherlands to destinations outside of the European Union.

“The Netherlands has a unique, leading position in this area. This entails certain responsibilities, which we take seriously. The Dutch semiconductor industry needs to know what it can expect. We have proceeded in a careful and targeted manner, so as to minimise the disruption to global trade flows and value chains,” Klever said.

ASML makes two types of tools – an extreme ultraviolet (EUV) lithography machine and a deep ultraviolet (DUV) lithography machine.

EUV lithography machines, which are used by chipmakers such as Taiwan Semiconductor Manufacturing Co, are required to produce the most cutting-edge chips.

DUV lithography machines are used to manufacture other types of semiconductors like memory chips, which go into everything from laptops to phones.

Both sets of machines were brought under Dutch government curbs last year. ASML said the expanded restrictions on Friday mean its TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems will now require a license from the Dutch government to be exported.

ASML said in a separate statement Friday that the latest measures from the government are not expected to have any impact on its financial outlook for 2024 or for its “longer-term scenarios.”