Netherlands, home to a critical chip firm, follows U.S. with export curbs on semiconductor tools

The Netherlands connected Friday announced caller export restrictions connected precocious semiconductor instrumentality amid U.S. unit to chopped China disconnected from cardinal chipmaking tools.

Companies successful the Netherlands volition request to use for a licence to export definite precocious semiconductor manufacturing equipment overseas, the Dutch authorities said, nether rules that volition travel into effect connected Sep. 1.

The Netherlands is location to ASML, 1 of the astir important semiconductor companies successful the world. ASML makes machinery that is required to marque the astir precocious chips.

ASML shares were down 1.5% connected Friday.

Last October, the U.S. introduced sweeping rules aiming to chopped disconnected exports of cardinal chips and semiconductor tools to China, a determination analysts said could hobble Beijing's ambitions to boost its home technology. Since then, the U.S. has been ramping up unit connected cardinal chipmaking nations and allies similar the Netherlands and Japan, to present export restrictions of their own.

Because of ASML's captious relation successful precocious chips, Washington has sought to get the Netherlands connected side. The Dutch authorities was connected the obstruction but in March laid retired restrictions connected the export of precocious semiconductor equipment. Friday's announcement finalizes those rules and gives much clarity astir what tin and can't beryllium exported.

The instrumentality does not azygous retired immoderate state nor does it sanction ASML explicitly.

The Dutch authorities said the rules use to a "number of precise circumstantial technologies for the improvement and manufacture of precocious semiconductors," that could perchance beryllium utilized successful places similar subject applications.

"We've taken this measurement connected nationalist information grounds. It's bully for the companies that volition beryllium impacted to cognize what they tin expect. This volition springiness them the clip they request to accommodate to the caller rules," Dutch Trade Minister Liesje Schreinemacher said successful a statement.

ASML's machines are utilized by precocious spot manufacturers similar TSMC. There are 2 cardinal tools it makes.

The archetypal is simply a so-called immersion heavy ultraviolet (DUV) lithography machine, which is utilized to manufacture representation chips. These chips are utilized successful a plethora of devices, from smartphones to laptops and servers, and could yet beryllium utilized for artificial quality applications. 

The 2nd is called an utmost ultraviolet (EUV) lithography instrumentality which is utilized to marque much precocious chips.

ASML said it volition present request to use for a licence to export its astir precocious immersion DUV lithography systems, called the TWINSCAN NXT:2000i and consequent tools.

The Dutch authorities has utilized a antithetic acceptable of rules to restrict exports of ASML's EUV machines since 2018. EUV exports nevertheless volition present travel nether the instrumentality that comes into effect successful September.

ASML said that it tin commencement submitting export licenses earlier the instrumentality comes into effect and the authorities volition assistance oregon contradict these applications connected a case-by-case basis.

The institution added that it does not expect the measures announced connected Friday to person a worldly interaction connected its 2023 fiscal outlook.