China’s ruling communist party has expressed discontent after the Netherlands updated its export control rules to include two more advanced chipmaking machines by Dutch company ASML. The photolithography machines, ASML’s TWINSCAN NXT:1970i and 1980i DUV immersion lithography systems, have already been subject to U.S. export control for almost a year.
The Dutch government added them onto its own export control list on Friday, aligning its rules with those imposed by the United States last year. The Netherlands cited safety and security risks related to the “current geopolitical context.”
ASML stated that it will now need to apply for export licenses with the Dutch government instead of the U.S. government to export the systems.
The Dutch government announced that these machines can be used in combination with technologies from other countries to produce semiconductors that “can in turn play an important role in advanced military applications.” It emphasized that uncontrolled exports of this equipment would have consequences for Dutch security interests.
In response to these new restrictions, a spokesperson for China’s Ministry of Commerce expressed dissatisfaction and accused the United States of coercing countries into tightening their export controls on advanced semiconductors and related equipment. The ministry asserted that the United States continuously expanded the concept of national security in order to maintain its global hegemony.
During the Trump administration, the United States lobbied Japan and the Netherlands to stop sales of high-end chipmaking equipment to Chinese firms. It also added Huawei and SMIC (Semiconductor Manufacturing International Corporation) to its Entity List.
In 2022, under President Biden’s administration, more curbs were enacted through legislation called CHIPS (Creating Helpful Incentives To Produce Semiconductors) and Science Act. These curbs aimed at restricting exports of advanced chips further tightened in 2023.
ASML holds an effective monopoly on extreme ultraviolet lithography (EUV), a technology used for producing transistors for advanced microchips. The company is also leading in deep ultraviolet immersion lithography (DUV).
Under pressure from the United States, ASML has never been allowed by the Dutch government to ship its best EUV tools to China-based customers. Since September 2023, ASML has been required by regulations from outside European Union sales if it wants customers outside Europe using their most advanced DUV equipment.
The two systems recently added onto Friday’s export control list are within ASML’s product range but were already listed under U.S. rules announced in October 2023 due partly because they contain some U.S.-made parts.
China-based firms like SMIC have shown interest in these machines as they have successfully made advanced chips using DUV tools through multipatterning techniques—running silicon wafers multiple times under such tools.
At an event held on Wednesday in New York City, ASML CEO Christophe Fouquet mentioned that China-based chipmakers will be able produce chips at technology levels such as 7nm, 5nm, eventually reaching 3nm using DUV tools—better than what Washington allows.
However he noted that chipmakers utilizing this technique will face increasingly worse yields making it economically unviable despite being a demonstration of engineering prowess.
