The Netherlands has reportedly decided to put into effect certain restrictions on the export of microchip equipment to China for the reason of national security. The Dutch government is following a similar move made by the U.S. This move will limit the export of products from chip equipment manufacturer and key contributor to the global microchip supply chain, ASML.

China has launched a complaint against the proceedings, expressing hope that the Netherlands would not follow the pattern of so-called “abuse of export control” as other countries. The U.S. government has been termed as China as a “tech hegemony” by China, in response to the stringent export controls imposed by Washington. Semiconductors is one of the major reasons behind the bitter conflict between the China and the U.S.

Spokeswoman of the Chinese Foreign Military, Mao Ning, has shared that the Dutch administration is trying to restrict China from moving forward and developing.

A senior fellow at the Atlantic Council think tank based in Washington, Dexter Roberts, also expressed that the decision of the Netherlands government is a victorious step for the U.S., however, spells bad news for China. Given the existing tension in the relations between the U.S. and China, this move could make the situation even worse, he added.

According to the Dutch Trade Minister, Liesje Schreinemacher, however, the guidelines laid down by the government will affect some specific technologies in the semiconductor production cycle. She further continued that, Netherlands considers it important that these technologies are brought under control at the earliest to ensure national and international security.

ASML has also put forward its views regarding the matter, stating that the restrictions laid by the government, including the licensing policy, would not have a major effect on its current market value.

According to the new rules, the companies in the Netherlands will have to obtain a license if they want to export microchip technologies, including the Deep Ultra Violet (DUV) immersion lithography systems.

Source Credit: https://www.bbc.com/news/business-64897794