Dutch Government Aligns with US on Semiconductor Export Controls, Impacting ASML

Dutch Match US Export Curbs On Semiconductor Machines

The Dutch government announced Friday broader restrictions on exports of semiconductor-making machines produced by sector heavyweight ASML, aligning itself with US curbs on technology at the centre of trade tensions with China. The measure, which will take effect on Saturday means ASML will be able to apply for export licences directly with the Dutch authorities instead of the US government to export the equipment outside the European Union. The Netherlands had previously not applied restrictions on certain equipment that was under US export controls, forcing the Dutch company to request licences from US authorities. "I've made this decision for reasons of security," foreign trade minister Reinette Klever said in a statement on the measure. "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," Klever said, without directly mentioning China. The new restrictions will apply to "more types of equipment" on top of curbs that have been in force since September 2023, the government said. ASML said in a statement that the measure "will harmonize the approach for issuing export licenses". "Since this is a technical change, this announcement is not expected to have any impact on our financial outlook for 2024 or for our longer-term scenarios," the company said. Shares in ASML were down 1.5 percent in early afternoon trading on the Amsterdam stock exchange. The Netherlands and Japan have previously joined the United States in imposing certain export restrictions on advanced chip-making equipment aimed at preventing China from acquiring sensitive inputs that could be used in cutting-edge weapons and tech such as AI. Responding to the latest measures, the Chinese foreign ministry said: "China has always been opposed to this wrong practice of politicising normal economic and trade relations and abusively linking them to issues of national security." "Trying to set up a technological blockade against China and artificially disrupt the stability of global production and supply chains will only lead to damage to its own interests," it said in a statement to AFP. The ministry added that China would "closely follow" developments and "resolutely safeguard its legitimate rights and interests". The Dutch government said Friday the equipment can be used to produce advanced semiconductors which "in turn play a key role in advanced military applications." "Thus, the uncontrolled export of this type of manufacturing equipment has implications for the Netherlands' security interests," the statement said. ASML said the updated licence requirement will apply to its TWINSCAN NXT:1970i and 1980i DUV (deep ultraviolet) immersion lithography systems, which print the tiny elements of a microchip. Dutch export licences already existed for other types of DUV systems as well as its extreme ultraviolet (EUV) lithography machines, which are used to make more advanced semiconductors. The government said Friday it would "assess applications on a case-by-case basis, so this is not an export ban". The Netherlands has a unique, leading position in this area. This entails certain responsibilities, which we take seriously," Klever said. "We have proceeded in a careful and targeted manner, so as to minimise the disruption to global trade flows and value chains," she said. The move comes a day after the United States tightened its own restrictions on certain technology. The US Commerce Department said Thursday it was implementing worldwide export curbs on specific types of items such as quantum computers and machines needed to make advanced semiconductor devices.

Dutch match US export curbs on semiconductor machines

The Hague (AFP) - The Dutch government announced Friday broader restrictions on exports of semiconductor-making machines produced by sector heavyweight ASML, aligning itself with US curbs on technology at the centre of trade tensions with China. The measure, which will take effect on Saturday means ASML will be able to apply for export licences directly with the Dutch authorities instead of the US government to export the equipment outside the European Union. The Netherlands had previously not applied restrictions on certain equipment that was under US export controls, forcing the Dutch company to request licences from US authorities. "I've made this decision for reasons of security," foreign trade minister Reinette Klever said in a statement on the measure. "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," Klever said, without directly mentioning China. The new restrictions will apply to "more types of equipment" on top of curbs that have been in force since September 2023, the government said. ASML said in a statement that the measure "will harmonize the approach for issuing export licenses". "Since this is a technical change, this announcement is not expected to have any impact on our financial outlook for 2024 or for our longer-term scenarios," the company said. Shares in ASML were down 1.5 percent in early afternoon trading on the Amsterdam stock exchange. The Netherlands and Japan have previously joined the United States in imposing certain export restrictions on advanced chip-making equipment aimed at preventing China from acquiring sensitive inputs that could be used in cutting-edge weapons and tech such as AI. Responding to the latest measures, the Chinese foreign ministry said: "China has always been opposed to this wrong practice of politicising normal economic and trade relations and abusively linking them to issues of national security." "Trying to set up a technological blockade against China and artificially disrupt the stability of global production and supply chains will only lead to damage to its own interests," it said in a statement to AFP. The ministry added that China would "closely follow" developments and "resolutely safeguard its legitimate rights and interests". 'Unique' position The Dutch government said Friday the equipment can be used to produce advanced semiconductors which "in turn play a key role in advanced military applications." "Thus, the uncontrolled export of this type of manufacturing equipment has implications for the Netherlands' security interests," the statement said. ASML said the updated licence requirement will apply to its TWINSCAN NXT:1970i and 1980i DUV (deep ultraviolet) immersion lithography systems, which print the tiny elements of a microchip. Dutch export licences already existed for other types of DUV systems as well as its extreme ultraviolet (EUV) lithography machines, which are used to make more advanced semiconductors. The government said Friday it would "assess applications on a case-by-case basis, so this is not an export ban". The Netherlands has a unique, leading position in this area. This entails certain responsibilities, which we take seriously," Klever said. "We have proceeded in a careful and targeted manner, so as to minimise the disruption to global trade flows and value chains," she said. The move comes a day after the United States tightened its own restrictions on certain technology. The US Commerce Department said Thursday it was implementing worldwide export curbs on specific types of items such as quantum computers and machines needed to make advanced semiconductor devices.

Dutch government retakes export licensing of 2 ASML tools from US

The Dutch government is expanding the export licensing requirements for ASML's (NASDAQ:ASML) immersion DUV semiconductor equipment that would take oversight over them from the U.S. and align the policies of the two nations. ASML said that following the updated license requirements, which come into effect Sept. 7, it will need to apply for export licenses with the Dutch government rather than the U.S. for shipments of its TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems. Sales of ASML's extreme ultraviolet lithography, or EUV, systems are also subject to license requirements, the company noted. ASML added that the Dutch export license requirement was already in place for the TWINSCAN NXT:2000i and subsequent DUV immersion systems. ASML said that since it is a technical change, the announcement is not expected to have any impact on its financial outlook for 2024 or for our longer-term scenarios as provided on its Investor Day in November 2022. "I'm making this decision for our safety," said Dutch Trade Minister Reinette Klever, according to a report from Reuters. "We see that due to technological developments there are more safety risks in the export of these specific production machines." Last week, it was reported that Netherlands-based chip equipment maker ASML (ASML) was likely to see further limitations on its China operations as the Dutch government was considering not renewing crucial licenses. In July, the U.S. government was thinking of imposing the most severe trade curbs available if companies, including ASML, continue to provide China access to advanced semiconductor technology. ASML was also being targeted by the U.S. because it has a monopoly on making some machines which produce the most advanced semiconductors. The Biden administration has been stepping up efforts to curb China's access to advance semiconductor equipment, which, among other things, is used in making AI products. Facing U.S. pressure, Netherlands-based has never allowed ASML to ship its best EUV equipment to China, while it started requiring a license for NXT:2000 series and better of DUV tools in September 2023, as per the report from Reuters. ASML had informed Chinese customers not to expect delivery of those equipment starting in 2024. Last year in October, the U.S. unilaterally started curbing ASML's shipment of the 1970i and 1980i systems, noting that they contained some U.S. parts. Some members of the Dutch parliament raised questions for The Netherlands' sovereignty, while ASML, struggled to keep up with separate licensing requirements in the U.S. and at home in The Netherlands. The U.S. and its allies including The Netherlands, Germany, South Korea and Japan have all been tightening curbs on the China's access to advanced semiconductor technology. Earlier this week, China warned of strict economic reprisal against Japan if the country further curbed the sales and servicing of chipmaking tools to Chinese companies.

ASML's Advanced Chip Tool Faces Dutch Export Restrictions Amid US Controls - ASML Holding (NASDAQ:ASML)

In a recent development, the Dutch government has increased its export restrictions on advanced semiconductor manufacturing equipment, effectively taking over from the U.S. in controlling the exports of machines from ASML Holding N.V. ASML. What Happened: The Netherlands announced on Friday that it is expanding licensing requirements for the export of advanced semiconductor manufacturing equipment, CNBC reported on Friday. This decision places the machines of ASML, a leading player in the semiconductor industry, under Dutch jurisdiction. The Netherlands considers these restrictions as a key national security measure. Reinette Klever, minister of foreign trade and development for the Netherlands, stated, "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." ASML, in a separate statement, clarified that these new measures are a "technical change" and are not expected to impact its financial outlook for 2024 or its "longer-term scenarios." See Also: Cathie Wood Congratulates Elon Musk On xAI Milestone After AI Firm Brings 100K Nvidia GPU Colossus Cluster Online In Just 122 Days: 'Many Big Announcements Ahead' The Netherlands, being the home to ASML, holds a unique and leading position in the semiconductor industry. The country's latest actions align with the U.S.'s efforts to cut off exports of key chips and semiconductor tools to China and encourage allied countries to follow suit. Why It Matters: This decision by the Dutch government follows its initial major export restrictions on advanced semiconductor equipment exports last year. It also comes on the heels of the U.S. introducing new export controls on critical technologies, including quantum computing and semiconductor goods. The new rules apply to exports from the Netherlands to destinations outside of the European Union. ASML's TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems will now require a license from the Dutch government to be exported, rather than from Washington. Price Action: ASML was trading 0.96% lower during Friday's pre-market, according to Benzinga Pro. Read Next: 7 Products Apple Will Likely Discontinue Next Week After iPhone 16 Launch Photo via Shutterstock. This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs