Netherlands limits chipmaking machine exports to China amid US controls

The Netherlands has updated its export control rules to include two advanced chipmaking machines from ASML, specifically the TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems. This decision follows a year of U.S. export controls on similar equipment, reflecting growing concerns over national security and the potential military applications of semiconductor technology. The Dutch government emphasized that uncontrolled exports could jeopardize its security interests. ASML will now need to apply for export licenses from the Dutch government instead of the U.S. government, marking a significant shift in the regulatory landscape for chipmaking equipment. The U.S. has been actively lobbying allies like Japan and the Netherlands to restrict sales of high-end chipmaking tools to Chinese firms, particularly targeting companies like Huawei and SMIC. The two machines added to the export control list are positioned in the middle of ASML's product range and are crucial for producing advanced semiconductors. Interest in these systems has surged as Chinese firms have successfully utilized DUV tools for advanced chip production through a technique called multipatterning. However, ASML's CEO noted that while Chinese chipmakers could achieve lower technology nodes, the economic viability of such production remains questionable due to diminishing yields. This development underscores the ongoing geopolitical tensions surrounding technology and trade, particularly in the semiconductor sector, where the U.S. and its allies are increasingly wary of China's capabilities and ambitions. The restrictions reflect a broader strategy to maintain technological superiority and safeguard national security interests.