The US again limits exports of chips to China, consequences for ASML still uncertain

This article was last updated on December 3, 2024

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The US again limits exports of chips to China, consequences for ASML still uncertain

The US is taking measures for the third time to prevent China from acquiring advanced computer chips. In this way, Washington hopes to slow down China’s advance in the field of AI (artificial intelligence) as much as possible and thus prevent China from gaining a more powerful position in the military field.

The new measures target 24 types of chip machine equipment that were not subject to the restrictions until now. The US will use a special measure to force non-American companies that have American software or hardware in their machines to cooperate.

140 Chinese parties are also added to a blacklist. Chip companies that want to trade with parties on this list must apply for a license. In practice it is expected that this will not be issued.

The Dutch chip machine maker ASML has also had to deal with restrictions in recent times. Normally, such rules also have consequences for non-American companies, via the so-called foreign direct product rule. Through this rule, Washington has something to say about machines from foreign companies if they contain American hardware or software.

Backing from The Hague

In this case, the American sanctions have no direct consequences for the high-tech giant from Veldhoven. An exception has been made, the Financial Times reports, among others. In a statement, ASML said that if the Dutch government comes to the same analysis as the Americans now, the export of certain types of chip machines to specified locations could be affected.

This means that ASML receives a certain form of support from the Dutch government. Instead of the company having to apply for a license in Washington, business must be done in The Hague. That is ASML’s preference.

There is no answer to the question whether the Netherlands will follow the Americans. Foreign Trade does not want to “anticipate” this. Although it is emphasized that the Netherlands “shares American concerns about uncontrolled exports of advanced semiconductor equipment”.

ASML expects that the latest restrictions will have no direct financial consequences and that for next year the impact will fall within the margins it previously mentioned. This means that the company still expects a turnover of between 30 and 35 billion euros. The turnover from China is expected to be 6 to 7 billion.

The measures could also have consequences for another Dutch chip company, ASM from Almere, the Reuters news agency wrote earlier. The company says it is still examining the new measures and cannot yet respond substantively.