Dutch Government Weighs ASML Economic Interests

The Dutch government will carefully consider the economic interests of ASML, the country’s leading computer chip-making equipment manufacturer, when deciding on any further tightening of export rules to China, according to Dutch Prime Minister Dick Schoof.

Balancing Economic Interests and Security Risks:

Prime Minister Schoof emphasized ASML’s importance to the Dutch economy, stating, “We are in talks, good talks, and we are also watching out very specifically for the economic interests of ASML.

These must be weighed against other risks, and the economic interests are extremely important.” Schoof clarified that new restrictions should not jeopardize ASML’s global position, reflecting the company’s critical role in the Netherlands’ innovative industrial sector.

Potential for Further Restrictions:

Schoof declined to comment directly on reports from Bloomberg News that the Netherlands might impose further curbs on ASML’s ability to export to China.

China is ASML’s third-largest market, following Taiwan and South Korea, and Chinese companies account for about 20% of its current order backlog.

Despite earlier restrictions, Chinese chipmakers continue to purchase older ASML equipment that does not fall under existing export controls. This equipment is essential for manufacturing legacy chips used globally in industrial applications.

International and Political Context:

The Dutch government’s decisions are influenced by its close alignment with the United States and its strong support for NATO.

As of October 2023, the U.S. has already unilaterally restricted ASML from exporting certain tools to China, a move that sparked debate in the Dutch parliament.

Additionally, the Netherlands has expressed dissatisfaction with China’s support for Russia in the ongoing conflict in Ukraine, which further complicates the geopolitical landscape surrounding these export controls.