In response to pressure from the United States to limit sales of high-tech components to China, the Dutch government on Friday unveiled new regulations limiting exports of specific advanced semiconductor equipment.
Only a "very limited" number of businesses and product types will be impacted, according to Schreinemacher, and China was not named.
As a result of the new regulations, ASML, a Dutch firm that is a significant equipment supplier to manufacturers of computer chips, declared that it will not alter its financial guidance, as reported by Reuters.
The New Regulations
The regulations are anticipated to take effect on September 1 and will require businesses that produce sophisticated chipmaking equipment to apply for a license before they can export it.
The statement was accompanied by a technical document outlining the equipment that will require a license.
The United States and two allies with robust chip equipment industries-The Netherlands and Japan-agreed, at a high level to tighten restrictions in an effort to hinder Beijing's capacity to produce its own chips. This led to the creation of the list.
The second-most advanced "DUV" product line, which is used to make computer chips, will require a license, according to ASML, the largest technology business in Europe.
It specifically mentioned its 2000 series "and subsequent" models and stated that it didn't anticipate the rules to materially affect its financial projections. The most cutting-edge EUV equipment from ASML has never been delivered to China.
Following the news, ASML's shares fell 3.6 percent, while those of its smaller rival, ASM International, fell 1.8 percent.
Export Restrictions to Start in October
On the basis of national security, the United States placed export restrictions in October on shipments of American chipmaking tools from American businesses like Lam Research and Applied Materials to China. It also encouraged other nations with significant suppliers to follow suit.
China condemned the action, which is part of escalating tensions between the two nations that have involved everything from 5G technology and purported spy balloons to relations with Taiwan.
The Tensions Between US and China
The United States and China have been engaged in a long-running rivalry over chipmaking, with both countries vying for dominance in the global semiconductor industry. The stakes are high, as semiconductors are essential for a wide range of products, from smartphones to cars to military equipment.
The US has long been a leader in chipmaking, but China has been making rapid progress in recent years. In 2020 China surpassed the US as the world's largest chip market. China is also investing heavily in chipmaking and is expected to become a major player in the global semiconductor industry in the coming years.
The US is concerned about China's growing dominance in the chip market. They believe that China could use its chipmaking power to achieve strategic goals, such as developing military technology or disrupting the US economy.
In response to these concerns, the US government has imposed a number of restrictions on chip exports to China. The US has also been encouraging its allies to do the same and the Dutch government's decision to restrict chip exports to China is the latest example of this trend.
The tensions between the US and China over chipmaking are likely to continue in the years to come. The outcome of this rivalry will have a significant impact on the global semiconductor industry and the global economy as a whole.
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