According to sources, the Netherlands government would impose export limits on the nation's most cutting-edge microprocessor technology in order to safeguard national security.
Products manufactured by ASML, a significant company in the worldwide semiconductor supply chain, will be subject to the embargo. China has filed a formal complaint about the action in response.
The administration of US President Joe Biden has put restrictions on semiconductor exports to its chief superpower rival in an effort to halt the development of cutting-edge technology that might be employed in military modernization and human rights abuses as geopolitical tensions between the US and China increase. The US has also pressed its international allies to follow suit.
The Dutch trade minister, Ms. Schreinemacher, said that the Dutch government had taken into account the technological changes and geopolitical environment, but did not specifically mention China or ASML. To export technology, including the most modern Deep Ultra Violet (DUV) immersion lithography and deposition, enterprises would now need to apply for licenses.
The firm stated that it "does not expect these steps to have a major impact on our financial projection that we have released for 2023 or for our longer-term scenarios as indicated during our Investor Day in November last year."
No matter where in the globe the chips were produced, Washington stated in October that it would want licenses from businesses exporting them to China using US equipment or software.
The US position on semiconductors has drawn criticism from South Korea's trade ministry this week. The South Korean government shall make it abundantly clear that the terms of the Chips Act may increase economic uncertainty, undermine companies' management and intellectual property rights, and lessen the allure of investing in the United States.
