Dutch government irritated by U.S. plans for new ASML export restrictions

For the second time in a short period, Dutch Cabinet members are in Washington for consultations about an American bill that would impose draconian export restrictions on ASML, among other chip sector companies. After consultations with his American counterpart, Minister Sjeord Sjoerdsa of Foreign Trade seemed mainly irritated by this new move to try to force countries not to export to China.

“Export control simply works best when countries cooperate out of conviction, rather than when policy is imposed across the border,” Sjoerdsma told ANP after consultations in Washington.

The bill in question is the MATCH Act. It would give the United States the power to determine for partner countries what their chip sector is allowed to ship to China. It can also ban companies from maintaining machines already sold to China. The bill states that if Washington cannot reach an agreement with allies on the matter, the United States will impose export restrictions on these allies.

“What makes us unhappy is that the bill seems to suggest that the United States could then impose measures on us,” Sjoerdsma told the news wire. “We are not in favor of that. Cross-border cooperation must be on a voluntary basis, but coercion makes that very difficult. This also concerns the core of our economy and our earning capacity. That is a matter for us to decide.”

The Netherlands is a major player in the global chip industry, with ASML as the largest supplier of chip manufacturing equipment. In consultation with the Netherlands, the United States has already severely restricted which chip-making machines ASML can sell to China.

Last week, Bloomberg reported that U.S. Commerce Secretary Howard Lutnick had accused ASML of circumventing the export restrictions, saying that one of the company's most sophisticated chipmaking machines had found its way to China. ASML denied this.

Further restrictions would hit ASML, and the Netherlands by extension, hard. ASML earns a great deal of money in China from the sale of chip manufacturing machines and maintenance contracts. Over the past three years, this amounted to €27 billion, or between 26 and 36 percent of the company’s total revenue, NOS reported.

“We have major concerns, because we are already working closely with the U.S. to prevent technology from ending up in places where it shouldn’t be. However, that currently does not rely on coercion, and that is what this law seems to suggest,” Sjoerdsma told the broadcaster. “It is very unfortunate that this could potentially put our national security in American hands.”

To ANP, Sjoerdsma said that the Netherlands would opt for “highly targeted proportionate measures” when it comes to export restrictions. “Without disrupting international value chains.” The Netherlands intends to examine the export of high-tech chip technology on a case-by-case basis. The MATCH Act indicates that that Amercia does “not share the same goal.”

He still described the talks on Tuesday as productive and constructive. He expects more visits to follow to convey Dutch concerns.