Dutch front in chip war

The West’s ongoing chip war with China has also been joined by the Netherlands. Following the news of a $40 billion facility in the US, it was reported that the Netherlands is considering restricting inputs used in chip production to China. The Netherlands plans to impose new restrictions on the export of certain products used in chip production to China. Sources speaking to Bloomberg shared information that such a decision could be made as of next month. With this potential step, the Netherlands will have legalized and expanded its informal ban on the sale of certain technology products to China. The Netherlands and Japan are the world’s largest suppliers of the machinery and know-how required to produce advanced semiconductors after the US. The US, which has been trying to limit China’s access to chip production and military technology for some time, has not yet been able to fully win these two allies over. There is a risk that the export restriction will negatively affect Dutch semiconductor manufacturer ASML Holdings, which received approximately 15 percent of its revenues from China last year. However, the US also has an trump card against ASML, which uses American-made parts. US officials have been threatening since early October to ban the sale to China of foreign equipment containing even the smallest amount of US technology if their allies fail to comply with new export control measures. The sources also said the Netherlands could reach an agreement with the US on technology restrictions for China.