Netherlands lobbies US to oppose tighter chip equipment limits on China

In short: The Netherlands is urging US lawmakers to drop a bill that would further limit China’s access to some Western chipmaking machines, including equipment made by ASML.

What happened

Dutch Trade Minister Sjoerd Sjoerdsma visited Washington this week and met with US Commerce Secretary Howard Lutnick and members of Congress. He said he wanted to explain the Netherlands’ concerns about the proposed MATCH Act.

The MATCH Act is a US bill that would block Chinese chipmakers from buying more types of semiconductor equipment from Western companies. Semiconductor equipment is the specialized machinery used to make computer chips, like the factory tools needed to build tiny electronics.

ASML, a Dutch company, is central to the dispute. ASML is the only company that makes certain high-end lithography machines, which are used to print extremely small patterns onto chips (like a super-precise stamp used during manufacturing). The US already restricts ASML’s most advanced “EUV” machines from being sold to China.

According to the report, the MATCH Act would go further by also restricting some ASML deep ultraviolet immersion machines. These are less advanced than EUV machines and China can still buy them today, even though they are older designs first shipped about a decade ago.

China made up about 19% of ASML’s net system sales, which helps explain why the Netherlands says the stakes are high.

Why it matters

AI systems, phones, cars, and many household devices all rely on chips, and chips depend on a global supply chain. If the US tightens rules and Europe pushes back, it could affect chip supply, business revenues, and how quickly new technology is produced and shipped. The bill has not yet had a full vote in the US House or Senate, and it may need to be included in a larger package to pass.

Source: TechCrunch AI