The Dutch government has recently updated its export control rules to include two more advanced chipmaking machines from the Dutch company ASML, causing discontent among China’s ruling communist party. The machines, ASML’s TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems, have been under U.S. export control for nearly a year. The Netherlands aligned its rules with those imposed by the United States due to safety and security risks in the current geopolitical context.
ASML will now need to apply for export licenses with the Dutch government instead of the U.S. government to export the systems. The Dutch government emphasized that these machines, when used with technologies from other countries, could contribute to the production of semiconductors with implications for advanced military applications, impacting Dutch security interests.
China’s Ministry of Commerce expressed dissatisfaction with the expanded restrictions, accusing the United States of coercing countries to tighten export controls on advanced semiconductors. The ongoing tensions highlight the broader geopolitical competition between different governance systems.
The U.S. has been lobbying allies to restrict sales of high-end chipmaking equipment to Chinese firms, with ASML facing pressure to limit sales to China. The Biden administration has implemented various measures to restrict the export of advanced chips to China, including updates to close existing loopholes.
ASML, known for its extreme ultraviolet lithography technology, faces restrictions on selling its most advanced equipment to China-based customers. The machines added to the export control list fall within ASML’s product range and were already restricted by U.S. rules due to containing U.S. parts.
China-based firms have achieved success in making advanced chips using DUV tools, such as the 1980i and 1970i machines, through processes like multipatterning. Despite potential advancements in chip production using these tools, challenges with yields may limit their economic viability.
ASML CEO Christophe Fouquet highlighted the capabilities of China-based chipmakers to produce chips at advanced technology levels but noted challenges that could impact their economic feasibility. The evolving landscape of export controls and technological advancements underscores the complex dynamics shaping the semiconductor industry.
*Reuters contributed to this report. Please rephrase the sentence.
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