Although the Dutch government banned exports of some of ASML's most advanced deep ultraviolet (DUV) lithography tools to China, the company still ships lithographic systems worth tens of billions of dollars to its Chinese customers. But a recent note from the Dutch trade minister highlights fears that ASML's tools could be used to advance Chinese military, reports Reuters.
"China focuses on foreign expertise, including Dutch expertise in the field of lithography, to promote self-sufficiency in its military-technical development," wrote Geoffrey Van Leeuwen, trade minister of the Netherlands, in a note seen by Reuters. "[Advanced chips made using ASML's tools can be used for] high-value weapons systems and weapons of mass destruction."
As a result, the Dutch government should center its attention on "the risk of undesirable end use" when reviewing export licensing decisions said Van Leeuwen. This may indicate that the country is reassessing its stance about China and may further restrict sales of chipmaking tools to the People's Republic.
Despite the licensing requirement introduced in September, the Dutch government has approved several licenses for exporting advanced semiconductor equipment to China (and revoked some others). It is anticipated that around 20 such requests will be made this year, although it is unclear how many will be from China.
Recently ASML warned that further restrictions against China's chipmakers will have an impact on its business.
It is noteworthy that some of the Dutch politicians question economic risks associated with ASML's business with Chinese chipmakers.
