According to Global Times reporters, Bloomberg quoted sources in March as saying that the U.S. government was pressuring allies including the Netherlands, Germany, South Korea, and Japan to further tighten restrictions on China's access to semiconductor technology, in an effort to plug loopholes in export controls implemented over the past two years. Sources cited examples of the U.S. urging the Netherlands to prevent asml holding from servicing sensitive semiconductor manufacturing equipment, even though these equipment were purchased by Chinese customers before the relevant restrictions were put in place.
On August 29, Bloomberg reported, citing anonymous sources, that the Dutch government plans to restrict ASML's provision of repair and maintenance services for semiconductor equipment to Chinese customers, which may result in some equipment being unable to operate as early as next year. This move could impact China's ability to develop a world-class chip industry. ASML and the Dutch government have both declined to comment.
According to reports, certain licenses for ASML to provide services and spare parts to China will expire by the end of this year, and the Dutch government led by Prime Minister Schoff, who took office in July, is unlikely to renew the relevant licenses, which is expected to involve the company's high-end deep ultraviolet lithography machines (DUV). This Dutch company produces the most advanced semiconductor manufacturing equipment in the industry, and the sale of equipment also includes essential maintenance agreements to ensure its normal operation. Revoking this service support may result in some equipment being unable to operate as early as next year.
Bloomberg reported that the Dutch government's decision was made under pressure from the United States. A senior U.S. official in the Biden administration stated that if these allies are not consistent with the U.S. in terms of measures to restrict China, there may be certain unilateral measures implemented against them, including the "Foreign Direct Product Rule" (FDPR) - even if a small amount of foreign products manufactured using U.S. technology are used, U.S. officials can control their flow.
In March, Bloomberg reported, citing insiders, that the U.S. government was pressuring allies including the Netherlands, Germany, South Korea, and Japan to further tighten restrictions on China's access to semiconductor technology in order to plug loopholes in export controls implemented over the past two years. Insiders cited the example of the U.S. urging the Netherlands to prevent ASML from repairing sensitive semiconductor manufacturing equipment, even though these equipment were purchased by Chinese customers before the relevant restrictive measures were introduced.
Bloomberg further reported that the Dutch government, led by former Prime Minister Rutte, resisted pressure from the United States and asked for more time to evaluate the impact of export restrictions on advanced semiconductor manufacturing equipment. However, current Prime Minister Schoff has sent cautious signals. In an interview with Bloomberg this month, he stated that discussions with China on national security issues must be "very cautious." When asked if the Dutch government is considering implementing new export restrictions this year, Schoff said that the Dutch government has had "smooth consultations" with the United States and Japan and expects "good results in the end."
According to Bloomberg, without ASML's DUV equipment, Chinese companies such as Huawei and its partner Semiconductor Manufacturing International Corporation (SMIC) will increasingly struggle to make breakthroughs in their existing capabilities; at the same time, the new restrictions in the Netherlands may also affect ASML's sales, as nearly half of the company's sales come from China. The media mentioned in a report in July that the restrictions on chip exports to China have put the U.S. government in an awkward position. U.S. companies believe that these restrictions actually harm their interests and are pushing for changes, and as the U.S. presidential election is only a few months away, U.S. allies also believe that there is no reason to change policies.
Xiang Ligang, Chairman of the China Information Consumption Alliance in Zhongguancun, told Global Times reporters on the 30th that the United States is pressuring the Netherlands step by step to take more targeted measures to restrict China's development of the semiconductor industry. This may bring new challenges to China's high-tech industry, but it will also inspire Chinese companies and research institutions to be determined and confident in core technology development. Xiang Ligang said that China's semiconductor industry is developing rapidly and has a strong demand for related production equipment, which is an important market for Western companies such as ASML. The United States, under the pretext of security, is indiscriminately cutting off the global production supply chain, which will inevitably harm the interests of Western companies themselves.
Editor/ping