China’s semiconductor ambitions dealt fresh blow by new Dutch export rules on ASML chip-making machines

The Netherlands government just dealt a fresh blow to China’s semiconductor industry with further restrictions on shipments of ASML’s chip-making equipment to the country, but it may not be the last word as the US is reportedly seeking to further tighten the choke hold on China’s chip ambitions.

ASML said in a statement on Friday that effective September 1, it will be required to apply for a license from The Hague to ship its most advanced immersion deep ultraviolet (DUV) lithography systems, including the TWINSCAN NXT: 2000i, and more sophisticated models.

In response, the Chinese government condemned the US for “coercing” other countries into imposing technological blockades on China and “undermining market rules and international trade” as well as the stability of the global supply chain.

“China will pay close attention to relevant developments and resolutely safeguard its legitimate rights and interests,” Mao Ning, spokeswoman for the Chinese Foreign Ministry, said at a press conference on Friday.

The impact of the updated export controls could initially be limited, as the NXT: 2000i and higher-end tools are used for the more advanced 7-nanometre and 5-nm process nodes, which are already difficult for Chinese chip makers to tackle given broader US export controls.

ASML’s lower-end NXT1980i, which can be used for 10-nm node chips, is still allowed for sale to China.