Dutch semiconductor machine export restrictions to come into force in September

FILE - the logo of ASML, a leading maker of semiconductor production equipment, hangs on the head office in Veldhoven, Netherlands, on Jan. 30, 2023. Dutch companies 鈥 notably ASML 鈥 that create machines that make advanced processor chips will have to get an export license before they can be sold overseas exported starting in September, the government announced Friday, June 30, 2023. (AP Photo/Peter Dejong, File)

THE HAGUE, Netherlands (AP) 鈥 Dutch companies that produce machines that make advanced semiconductor processor chips will be required to have export licenses before they can sell them overseas starting in September, the government announced Friday.

The new measure, which was , 鈥渋s country neutral,鈥 the government said. But it is seen as part of a U.S. policy that aims at restricting China鈥檚 access to materials used to make such chips, which can be used in military technology. The requirement will notably affect Duch company ASML, the world鈥檚 only producer of machines that use extreme ultraviolet lithography to make advanced semiconductor chips. The Dutch government has prohibited the Veldhoven-based company from exporting some of its machines to China since 2019.

鈥砏e have taken this step in the interest of our national security. It is good that the companies concerned now know where they stand. This way they can adapt to the new regulations in time,鈥 Foreign Trade and Development Cooperation Minister Liesje Schreinemacher said in a statement.

that included discussions about ASML's advanced chip machines.

The Biden administration in October imposed export controls to limit China鈥檚 access to advanced chips, which it says can be used to make weapons, commit human rights abuses and improve the speed and accuracy of its military logistics. It urged allies like Japan and the Netherlands to follow suit.

In a statement on the website of its Dutch embassy, China slammed the new measures as 鈥渃ompletely unreasonable and untenable.鈥

It said such restrictions 鈥渨ill not only damage the legitimate rights of Chinese companies, but also cause losses to Dutch companies, destabilize the global industrial and supply chains and hurt the good reputation of the Netherlands in supporting free trade.鈥

ASML, headquartered in the southern Dutch town of Veldhoven, has continued to ship lower-quality chip lithography systems to China despite the government's restrictions on advanced machines.

The company said in a statement that it will now have to apply for export licenses for all shipments of its most advanced deep ultraviolet lithography systems.

鈥淭he Dutch government will determine whether to grant or deny the required export licenses and provide further details to the company on any conditions that apply,鈥 ASML said. The company added that it does not expect the restrictions 鈥渢o have a material impact on our financial outlook."

Schreinemacher said the restrictions were carefully considered and as precise as possible.

鈥淭his way we can address the most important vulnerabilities without unnecessarily disrupting the global production of chips,鈥 she said.

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