FME: The Netherlands must seek European support for the export of chip technology
The Netherlands must seek support from the European Commission (EC) and other summaries of the European Union (EU) for the export of Dutch chip technology to China, advocates FME. The employers’ organization for the strong industry wants the Netherlands to take a European decision on the export restrictions announced by the United States (US) regarding machines for chip production to China.
The US wants access to advanced chips in China. The countries have been engaged in a battle known as a chip war for a long time. The Americans have therefore been imposing various chip-related export restrictions on Western parties that trade with China for some time now. This is a major hindrance to China, which is still heavily dependent on foreign parties for chip technology. In the meantime, this specifically concerns advanced chips, aimed at artificial intelligence, supercomputers and defense purposes, among other things.
ASML also affected
The restriction also affects the Dutch ASML, which machines for the production of chips are minimal and supplied. For example, the Dutch company has not been allowed to make progress in supplying extreme ultraviolet lithography (EUV) machines to China for some time. However, the Americans also want to restrict the export of older technology for the production of chips. In the meantime, this specifically concerns deep ultraviolet lithography (DUV) machines.
The US wants the Netherlands and Japan to support the export restrictions. limited restrictions, ASML could suffer a lot of damage. China is an important sales market for the Dutch company. The company saw its sales in China increase by 19% in the first half of 2022 to nearly $1.3 billion. China is an important market for DUV systems.
‘The Netherlands does not just sign at the cross’
The Dutch government is also not eager to embrace the export restrictions proposed by the US. Prime Minister Mark Rutte and Minister of Foreign Affairs Wopke Hoekstra spoke with US President Joe Biden last week. The FD reported that Rutte and Hoekstra made no promises in this conversation about export restrictions to China regarding chip technology and production. Rutte expected that the Netherlands would not just ‘sign at the cross’. Minister Liesje Schreinemacher for Foreign Trade and Development Cooperation was shared during an interview with Buitenhof.
In the talks, therefore, no final decision was made about the possible adoption of export restrictions that the US imposes on China. The government does report that it has taken ‘steps forward’ in this area. What this means exactly is not clear.
Japan also shielded
The US not only wants the Netherlands to impose far-reaching export restrictions on China regarding chips, but also asks Japan – with Canon and Nikon an independent player in the field of chip production – to do the same. Like the Dutch government, the Japanese government is therefore limited. Japanese Prime Minister Fumio Kishida and Biden recently spoke on the subject. As a result of this conversation, Kishida has stated that Japan has still not taken a decision on tightening the export restrictions on chip technology to China.
FME is now calling for the Netherlands to seek support from the EC and EU member states. The EU should take over a European parliament around export restrictions of chip technology to China. FME points to the leading position of the Netherlands in this field as one of the most important suppliers of machines used in the production of chips. “In this time of rapid technological developments, digitization and geopolitical tensions, national and European strategic autonomy is of great importance,” says FME chairman Theo Henrar. “The Netherlands benefits from a more united and strong action by the EU.”
‘Clear path for Dutch digital champions’
Henrar: “Over the past fifteen years, the digital economy has grown 2.5 times faster than the analog one. Semiconductor and chip technology are at the basis of this growth. To ensure our future earning capacity, it is important as a nation to excel in the global digital economy. So there must be plenty of room for our Dutch digital champions, within the door of the EU.
FME wants the Netherlands to seek much more cooperation with secured semiconductor nations surrounding China. Think of South Korea, Taiwan and Japan.
Author: Wouter Hoeffnagel
Image: brookhaven via Pixabay