Sep 6, 2024, 9:29 AM
Sep 6, 2024, 12:00 AM

Dutch government tightens chip machine export rules for security

Highlights
  • The Dutch government is expanding export restrictions on equipment for advanced processor chip manufacturing.
  • This decision is driven by security risks and aligns with U.S. policies to limit China's access to chip-making materials.
  • ASML will need government authorization for exports outside the EU, but the company does not expect financial impacts from these measures.
Story

The Dutch government has announced an expansion of export restrictions on equipment used to manufacture advanced processor chips, which can be utilized in weapons systems. This decision was made public by Minister for Foreign Trade and Development, Reinette Klever, who emphasized the security risks associated with the export of such technology, particularly in light of current geopolitical tensions. The restrictions specifically target deep ultraviolet lithography equipment, requiring the Dutch company ASML to seek government authorization for exports outside the European Union. ASML, a leading manufacturer of chip-making machinery, had already been subject to prior export restrictions. The new measures align with broader U.S. policies aimed at limiting China's access to critical materials for chip production, which could have military applications. Klever's statement highlighted the need for heightened security measures due to technological advancements that have increased the risks associated with exporting this type of manufacturing equipment. In response to the announcement, ASML indicated that the new export licensing process would help standardize the approach to issuing export licenses. The company expressed confidence that these restrictions would not adversely affect its financial outlook for 2024 or its long-term business scenarios. This reflects a broader trend among Western nations to scrutinize and regulate the export of advanced technologies that could potentially enhance military capabilities in rival nations. Overall, the Dutch government's decision underscores the growing concerns over national security and the implications of technological exports in a rapidly evolving geopolitical landscape. The move is part of a concerted effort to ensure that sensitive technologies do not contribute to military advancements in countries perceived as threats.

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