February 27, 2024

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'US to consider exporting ASML machines to China'

'US to consider exporting ASML machines to China'

TechnologyOct 21 '23 at 12:24Author of the book: Zoric Simonides

Due to new US rules, the Netherlands is losing control over the export of chip machines from ASML to China. FD writes. Henceforth, ASML had to go to Washington for a license to sell the machines, whereas under Dutch rules they could have simply been shipped.

The ASML factory is in Veldhoven. (ANP / Rob Engelar)

The US tightened rules on chip exports to China last week. These new rules are more stringent than the guidelines in the Netherlands. In addition, the US government frequently inspects the equipment of ASML and its two Japanese counterparts. Previously, Washington had jurisdiction over products containing at least 25 percent US technology, but products from these three companies will have a 0 percent limit.

A screw

This means that ASML's genuine Dutch chip machines are regulated based on US rules, according to ASML's source Against FD. Otherwise if there is an American screw in a Dutch product, it already leads to the need to apply for permission from the Americans and they decide if you get it. An export license for a product from the Netherlands is now controlled by a foreign power.'

'Otherwise if there is an American screw in a Dutch product, this already leads to the need to apply for permission from the Americans'

The Dutch Foreign Ministry did not want to tell the FD whether the Netherlands knew about the new US rules. The ministry also declined to say whether the Netherlands agrees with another country deciding what ASML can sell to China.

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Also Read | The end of the chip war between the US and China is nowhere in sight

'As partners, we regularly inform each other of our analyzes and considerations. Ultimately, each country has its own export restrictions,” a spokesperson for outgoing Minister for Foreign Trade and Development Cooperation Liesje Schreinmacher told the newspaper.

Impact is limited

ASML did not want to answer FD's queries. The company was referring only to a statement it issued Tuesday in response to the new measures. It said the impact on financial results would be limited due to the loss of orders from China. Customers in other countries will absorb the lost Chinese orders, the company said.

Also Read | ASML sees sharp decline in orders

ASML released its quarterly figures this week: orders fell sharply last quarter, leading to a slight drop in net profit. According to CEO Peter Wennink, the semiconductor industry is currently at the 'bottom of the cycle'. The company expects a turnover comparable to 2023 next year: according to Wennink, 2024 is a transition year: 'an important year to prepare for the significant growth we expect for 2025'.

Ask more | A New Chapter in the Chip War?