THE HAGUE – The Dutch government will take the economic interests of ASML (NASDAQ: ASML) into account when deciding on further tightening the rules governing the export of ASML computer chip-making equipment to China, Dutch Prime Minister Dick Schoof said on Friday.
“We are in talks, good talks and we are also watching out very specifically for the economic interests of ASML, those need to be weighed against other risks and the economic interests are extremely important,” Schoof said, in response to questions about possible further restrictions on ASML exports to China.
“ASML is for the Netherlands an extremely important, innovative industry that should not suffer under any circumstances because that would damage ASML’s global position,” he added.
Schoof would not comment on reports from Bloomberg News on Thursday that the Netherlands would put more curbs on ASML’s (NASDAQ: ASML) China chip business.
China is ASML’s third largest market after Taiwan and South Korea, and Chinese companies represent around 20% of its current order backlog. After previous rounds of restrictions, Chinese chipmakers are buying mostly older ASML equipment that does not fall under export restrictions and is used to make “legacy” chips important in industrial manufacturing around the globe.
Previous rules imposed by the Dutch government had required a license for the upper end of ASML’s product range. Separately in October 2023 The United States began unilaterally restricting ASML from exporting some tools near the middle of its product range — a move that prompted questions in Dutch parliament.
The Dutch government is closely aligned with the U.S. and a strong supporter of NATO, and it is unhappy with China’s support for Russia in the Ukraine war.
(Source: ReutersReuters)
