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Home » Dutch to Restrict Chip Equipment Exports Amid U.S. Pressure

Dutch to Restrict Chip Equipment Exports Amid U.S. Pressure

A SEMICONDUCTOR CHIP COLORED AS THE FLAG OF THE NETHERLANDS SITS AT THE CENTER OF A CIRCUIT BOARD

Image: iStock.com/Dragon Claws

July 3, 2023
SupplyChainBrain

The Netherlands has announced new rules restricting exports of certain semiconductor manufacturing equipment. While the news comes on the heels of pressure from the U.S. to curb the sale of computer chip technology to China, the Dutch government said it had taken the step on national security grounds.
BBC News reported the Chinese government responded that the decision was "not in the interests of any party," and would impact chip production and supply chains.

Mao Ning, China's foreign ministry spokesperson, said China opposed the U.S.'s "abuse of export controls" and its "use of various pretexts to win over and coerce other countries into imposing a technological blockade against China".

The U.S. is engaged in an arms race with China over control of the supply of semiconductors, especially certain computer chips used for super-computing and artificial intelligence.

Such chips have created a $500 billion industry that is expected to double by 2030, and it is thought that whoever controls the supply chains — the network of companies and countries that make the chips — holds the key to being an unrivalled superpower.

In October 2022, the U.S. imposed sweeping export restrictions on shipments of American chipmaking tools to China to prevent its technology from being used to strengthen Beijing's military. But for the U.S. restrictions to be effective it needs other key suppliers, such as the Netherlands, to join forces.

The Dutch government said that from September 1, the export of "certain advanced semiconductor manufacturing equipment" would have to be authorized.

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