Dutch government blocks ASML exports of some chip-making machines to China: Here’s why

Veldhoven-based ASML Holding, a manufacturer of chip-making equipment, announced on Monday that the Dutch government has partially revoked an export license for the shipment of some chip-making equipment to China following US export restrictions.

“A license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023 has recently been partially revoked by the Dutch government, impacting a small number of customers in China,” says the company in its official post. 

The company did not anticipate any significant impact on its financial outlook in 2023 due to the revocation of its export license or the latest US export control restrictions.

Last year, the US announced new rules giving Washington the right to restrict the export of ASML‘s “Twinscan NXT1930Di” machine if it contains any US parts.

“In recent discussions with the US government, ASML has obtained further clarification of the scope and impact of the US export control regulations. The latest US export rules (published October 17, 2023) impose restrictions on certain mid-critical DUV immersion lithography systems for a limited number of advanced production facilities,” says the Dutch company. 

In Q3 2023, China became ASML’s biggest market with 46 per cent of sales, surpassing Taiwan and South Korea as the company’s third-largest market, reports Reuter. 

ASML’s previous accusations

Last year, ASML accused a former employee in China of stealing data about its technology. 

According to the reports, a male employee committed a data breach involving technological data (not hardware). Dutch and US authorities have been notified regarding the same, adds the person. 

The details about the data breach surfaced after the Netherlands and Japan agreed to restrict exports of some advanced chipmaking machinery to China. 

In 2019, ASML accused Chinese spies of stealing trade secrets in its US unit, causing millions of euros worth of damage. 

According to the report, confidential information including source code, software, and other details have been deciphered by senior Research and Development staff who allegedly have ties with the Chinese Ministry of Science and Technology.