High-tech export restriction preventing ASML from selling to China begins in September

Dutch manufacturer ASML will no longer be allowed to export certain microchip-producing machines to China starting in September. The export restrictions announced in March will take effect beginning that month, said Foreign Trade Minister Liesje Schreinemacher.

The regulation was published on Friday in the Staatscourant, the official government publication where new laws are formally announced. A national licensing requirement was announced more than three months ago that will specifically apply to certain machines, including the most advanced Deep Ultraviolet (DUV) immersion lithography and deposition.

"We have taken this step in the interest of our national security. It is good that the companies involved now know where they stand. This way they can adapt to the new regulations in time," said Schreinemacher.

ASML will also have to apply for a permit for the maintenance of machines already in use. "Every time, we will consider case by case whether maintenance can be carried out," said the minister. There are already hundreds of ASML DUV machines in use in China.

The export restriction came following years of pressure from the government of the United States. It announced last October that it would limit the export of its own chip technology to China for fear that the chips would be used for military purposes. In addition to the Netherlands, Japan also decided to restrict the export of certain chip technology.

ASML, which is based in Veldhoven, is a world leader in the development of chipmaking machines. According to Schreinemacher, the scheme addresses the "most important vulnerabilities" under current policy, "without unnecessarily disrupting global chip production."

When the measure became known in March, ASML stated that it did not expect it to have a major effect on the company's financial results. Exports by ASML have been limited for some time. The more modern machines using extreme ultraviolet lithography have not been allowed to be exported to China for a few years now.

When the export restriction came out, China expressed its displeasure, but has not yet announced any countermeasures. Foreign Affairs Minister Wopke Hoekstra said in May after a visit to Beijing that the Chinese government understands why this step has been taken.

"My observation is that people do not applaud it, do not like it, but also understand why the Netherlands is doing it. In addition, they also want to continue the technical dialogue, and I think that is a realistic question from the Chinese side," Hoekstra said at the time.