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Dutch government says China seeks military advantage with ASML tools

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AMSTERDAM (Reuters) – Concerns that ASML’s computer chip equipment could be used for Chinese military purposes were at the root of a recent decision to deny the company an export license, the Dutch trade minister said in response to a parliamentary question. He said that there is.

Netherlands-based ASML, Europe’s largest technology company, dominates the global market for lithography systems needed by computer chip makers to create circuits.

“China is focusing on foreign expertise, including Dutch expertise in the field of lithography, to promote self-sufficiency in military technology development,” Trade Minister Geoffrey van Leeuwen said in a statement obtained by Reuters. I am writing this in a memo dated May 5th.

Van Leeuwen said ASML tools are used to manufacture advanced semiconductors that can be used in “high-value weapons systems and weapons of mass destruction,” and that the Dutch government would consider them “undesirable” when reviewing export licensing decisions. The focus is on end-use risks.

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Following pressure from the US, the Dutch government last year introduced licensing requirements for ASML’s mid-range DUV machines. The company’s cutting-edge tools are not sold in China.

The question, posed by lawmaker Femke Zedijk of the reformist NSC party, asked why the government initially granted and then quickly withdrew a license to ASML to export some tools to an undisclosed customer in China. . The company has sold hundreds of millions of euros worth of such tools to Chinese customers in recent years.

Van Leeuwen’s answer dodged that question, adding that since the licensing requirements were introduced in September, “several licenses have been granted for the export of advanced semiconductor equipment to China” and that this year It added that it expects to receive about 20 such requests.

This is in line with predictions from industry group SEMI, which said about 18 Chinese chip factories would open this year, more than in any other region.

Some of Zeedijk’s questions remained unanswered, including whether the Netherlands had revoked its license at the request of the U.S. government.

“I’m not saying there aren’t security concerns or that this decision was wrong, but I would like to know more information,” Zeedijk told Reuters on Monday.

“Besides the security risks, there is also a recognition that there are economic reasons behind it.”

Following a report from Bloomberg News, ASML confirmed on New Year’s Day that the Dutch government had revoked its license.

While the resulting cancellation did not impact ASML’s fourth quarter earnings, the deep ultraviolet (DUV) tools in question cost approximately $60 million each and will be a key part of customer plans.

(Reporting by Toby Starling; Editing by Susan Fenton)

Copyright 2024 Thomson Reuters.



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