Netherlands Expands Export Control Rules for Some ASML Equipment

By Mauro Orru

The Dutch government said it would expand export control rules that will require ASML Holding to seek licenses with Amsterdam rather than Washington to ship some chip-making machinery outside the European Union.

The Ministry for Foreign Trade and Development said the new requirements would apply to deep ultraviolet lithography equipment, building on existing export control rules that have been in force since September last year. The updated requirements come into force on Sept. 7.

"I've made this decision for reasons of security," Minister for Foreign Trade and Development, Reinette Klever, said in a statement. "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."

The move comes as Washington and its allies seek to curb China's access to advanced semiconductors that could be used for military applications. ASML makes highly complex machines that chip makers need to produce increasingly sophisticated semiconductors to power artificial-intelligence features in smartphones, laptops, electric vehicles and data centers.

Sophisticated semiconductors can also play a key role in advanced military applications, and the Dutch government said the uncontrolled export of manufacturing equipment can have implications for its own security interests.

ASML said it doesn't expect the requirements to affect its guidance for the year and its longer term targets.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

September 06, 2024 05:38 ET (09:38 GMT)

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