The Dutch government is expanding export restrictions on ASML's advanced semiconductor equipment, requiring new licenses for two more DUV lithography tools, aligning with US sanctions against China.
The Dutch government has announced an expansion of export restrictions on advanced semiconductor manufacturing equipment produced by ASML, aligning with U.S.-imposed curbs aimed at restricting China's access to cutting-edge technology. The new measures, effective from September 6, 2024, will require ASML to obtain export licenses for two additional models in its range of deep ultraviolet (DUV) lithography systems, the TWINSCAN NXT:1970i and 1980i. This decision marks a significant shift in regulatory oversight from the U.S. to Dutch authorities for these specific semiconductor tools.
Dutch Trade Minister Reinette Klever justified the decision on grounds of national security, emphasizing the heightened risks associated with technological advancements and their potential military applications. "We see that technological advances have given rise to increased security risks associated with the export of this specific manufacturing equipment, especially in the current geopolitical context," Klever stated. The Dutch policy mirrors similar restrictive measures recently reinforced by the U.S., which also introduced broader controls on quantum computing and semiconductor technologies to hamper China's military technology development.
ASML, a critical player in the global semiconductor supply chain, had previously been compelled to comply with U.S. export controls for equipment incorporating American components. The new Dutch regulations will relieve some of the administrative burdens by centralizing the licensing process within the Netherlands. Despite the regulatory changes, ASML maintains that these adjustments will not impact its financial outlook for 2024 or its long-term strategic objectives.
Reactions to these regulatory developments have been mixed. Shares of ASML dipped by 1.5% on the Amsterdam stock exchange following the announcement. Moreover, the new regulations have sparked diplomatic tensions, with the Chinese government denouncing the move as a politicization of economic and trade relations. The Chinese Ministry of Foreign Affairs has criticized the technological blockade, arguing that it will harm global supply chain stability and negatively impact involved parties' interests.
The Dutch government’s stance underscores the intricacies of international tech trade amidst escalating U.S.-China trade tensions. Both the Netherlands and Japan had previously aligned with the U.S. to restrict the sale of advanced chip-making tools. These tools, including ASML's high-end EUV lithography machines, are indispensable for manufacturing cutting-edge semiconductors used in AI and other advanced technological applications.
While Chinese semiconductor manufacturers such as SMIC have made strides using older DUV tools, producing chips at advanced nodes like 7nm and 5nm, the high cost and reduced economic viability of this approach remain significant hurdles. ASML CEO Christophe Fouquet highlighted that although Chinese firms can technically produce advanced chips using DUV technology, the economic feasibility remains questionable due to worsening production yields.
The U.S. Commerce Department's recent update echoes the Dutch measure by emphasizing the extraterritorial reach of U.S. export controls, directly impacting ASML and similar entities worldwide. This ongoing international policy alignment aims to balance national security interests with the broader implications for global tech trade and innovation. As the geopolitical landscape evolves, further regulatory adjustments from countries with prominent roles in the semiconductor industry are anticipated.
In summary, the Dutch government’s expanded export curbs on ASML tools, coerced by U.S. pressure, represent a strategic maneuver to maintain control over essential semiconductor technologies amidst growing international geopolitical and economic uncertainties.
Iraq's oil production in September was below its OPEC+ quota, producing 3.94 million barrels per day, as the country aims to comply with its output targets.
The German trade union Verdi has expressed strong opposition to a potential cross-border merger involving Commerzbank, citing concerns over job losses and economic stability.
Google has requested a California federal judge to delay a court order that mandates opening its Play Store to more competition, citing potential risks to the Android ecosystem.
Chinese electric carmaker BYD plans to increase its sales in Germany within six months, despite facing new EU tariffs on China-made electric vehicles.
Tesla's unveiling of a two-seater robotaxi, dubbed Cybercab, has left investors and experts puzzled due to its unconventional design and lack of details, causing Tesla's stock to tumble.
Bain Capital has made a binding offer to acquire Fuji Soft, outbidding rival KKR by 7% with a proposal of 9,450 yen per share, valuing the company at $4 billion.
China's largest state-owned banks are set to lower existing mortgage rates starting October 25, following a directive from the central bank to stimulate the economy.
A U.S. appeals court has temporarily halted permits for Kinder Morgan's Tennessee pipeline project following environmental groups' concerns about potential ecological harm.
The FDA has agreed to revisit its decision to bar compounded versions of Eli Lilly's weight loss and diabetes drugs, following a lawsuit by the Outsourcing Facilities Association. This move allows continued access to cheaper drug alternatives amid ingredient shortages.