Dutch Government Weighs ASML's Economic Interests Amid China Export Restrictions

The Dutch government, considering further export restrictions on ASML's chip-making equipment to China, is emphasizing the company's economic importance, according to Prime Minister Dick Schoof. ASML, a critical and innovative industry for the Netherlands, faces possible additional curbs despite its significant market in China, Taiwan, and South Korea.

The Dutch government will consider the economic interests of ASML when deciding on future regulations restricting the export of its computer chip-making equipment to China, Dutch Prime Minister Dick Schoof stated on Friday.

"We are in good talks, and we are also specifically watching out for the economic interests of ASML; those need to be weighed against other risks, and these interests are extremely important," Schoof said, addressing questions about potential stricter measures on ASML exports to China. "ASML is an extremely important, innovative industry for the Netherlands, and it should not suffer under any circumstances as it would affect ASML's global standing," he added.

Schoof declined to comment on Bloomberg News reports indicating the Netherlands might impose more limitations on ASML's China chip business. China is ASML's third-largest market after Taiwan and South Korea, with Chinese companies accounting for around 20% of its existing order backlog. Following earlier restrictions, Chinese chipmakers have been acquiring older ASML equipment not covered by export restrictions, crucial for global industrial manufacturing.

Previous regulations required a license to export ASML's high-end products. In October 2023, the United States began unilaterally restricting ASML from exporting mid-range tools, sparking questions in Dutch parliament. The Dutch government, a strong U.S. ally and NATO supporter, remains discontented with China's backing of Russia amid the Ukraine conflict.

(With inputs from agencies.)