Lead

The Dutch government has lodged an official objection to a proposed US law that would further restrict semiconductor equipment maker ASML from selling to China and servicing customers there, according to the South China Morning Post. The Netherlands' Trade Minister, Sjoerd Sjoerdsma, expressed concerns about the potential impact on his country, especially the extraterritorial reach of the legislation.

Coverage Comparison

The South China Morning Post reported that the Dutch government communicated its objections to both members of Congress and the US government. The report highlights the proposed Multilateral Alignment of Technology Controls on Hardware (Match) Act, introduced last month by a bipartisan group of US lawmakers, which would ban ASML from shipping lower-end deep ultraviolet lithography machines to Chinese buyers and prevent it from servicing existing customers in China.

A separate SCMP report detailed Sjoerdsma's upcoming visit to China in early July, leading a business delegation with stops in Beijing and Shanghai. The visit is seen as an effort to address bilateral issues, including US export curbs on ASML and the ongoing dispute over the Dutch chipmaker Nexperia's ownership. Sjoerdsma was previously sanctioned by Beijing in 2021 over his criticism of alleged human rights abuses in Xinjiang, but those restrictions have reportedly been lifted in recent months.

Key Claims

  • Dutch Objection: The Netherlands has formally objected to the proposed Match Act, specifically its extraterritorial provisions, as stated by Trade Minister Sjoerd Sjoerdsma in written answers to lawmakers published on Tuesday.
  • Impact on ASML: The proposed law would extend existing restrictions, which already ban ASML from selling its most advanced extreme ultraviolet machines to China, to include lower-end deep ultraviolet lithography machines and servicing of existing customers.
  • Sjoerdsma's Delegation: The trade minister will lead a business delegation to China starting July 6, with meetings planned with Chinese officials, including Commerce Minister Wang Wentao and Shanghai party secretary Chen Jining, according to an anonymous source familiar with the planning.
  • Bilateral Tensions: The visit comes amid friction over US efforts to tighten technology curbs on China, affecting both ASML's exports and the ownership of Nexperia, a semiconductor manufacturer with Dutch and Chinese ties.

Perspectives

  • Dutch Government: Views the proposed US law as an overreach that could harm Dutch economic interests, particularly ASML's significant business in China. The government is actively seeking to protect its companies from extraterritorial US legislation.
  • US Lawmakers: Proponents of the Match Act argue that restricting ASML's less advanced machines is necessary to prevent China from using them to advance its chipmaking capabilities, potentially undermining US national security.
  • China: Has not officially commented on the Match Act or Sjoerdsma's visit. However, Beijing has consistently opposed US export controls, viewing them as an unfair attempt to hinder its technological development. The lifting of sanctions on Sjoerdsma may signal a willingness to engage diplomatically.
  • ASML: The company has not publicly commented on the proposed law, but its business operations are directly affected. Expanding restrictions could significantly reduce its revenue from China, its third-largest market, and complicate its maintenance and service commitments.
As of now, the Match Act has not been passed into law. The Dutch response to the proposal highlights the growing transatlantic tensions over semiconductor export controls, with Europe caught between its economic interests in China and the security concerns raised by the United States. The outcome of Sjoerdsma's visit and continued diplomatic efforts will be crucial in determining the future of ASML's operations in China.