Amid US-China chip war, the Netherlands imposes restrictions on certain tech exports

(image credit: bbc.com)

The Dutch government has announced restrictions on the export of the country's "most advanced" microchip technology, following similar moves by the US, to protect national security. The restrictions will include products by ASML, a key firm in the global microchip supply chain. China has launched a formal complaint against the move, calling the Netherlands to not "follow the abuse of export control measures by certain countries". Semiconductors, which power everything from mobile phones to military hardware, are at the centre of a bitter dispute between the US and China.

Under the new rules, companies would have to apply for licences to export technology including "the most advanced Deep Ultra Violet (DUV) immersion lithography and deposition". ASML, a chip equipment maker, expects the restrictions to apply to its "most advanced immersion DUV systems". The Dutch government had stopped ASML from selling its most advanced lithography machines to China since 2019.

China has frequently called the US a "tech hegemony" in response to export controls imposed by Washington. A spokeswoman for the Chinese Foreign Ministry, Mao Ning, said the Dutch move aimed to deprive China of its right to develop. Dexter Roberts, a senior fellow at the Atlantic Council think tank, said the decision by the Netherlands was "a real step forward, a real victory for the US and also very bad news for China".

The US has been pushing the Netherlands and Japan to adopt similar restrictions. Meanwhile, South Korea's trade ministry raised concerns over the US policy on semiconductors earlier this week. "The South Korean government will make it clear that the conditions of the Chips Act could deepen business uncertainties, violate companies' management and technology rights as well as make the United States less attractive as an investment option," the ministry said. South Korea is home to major microprocessor manufacturers including the world's biggest memory chip maker Samsung.