A senior Dutch government official has travelled to Washington this week to voice strong opposition to a proposed US bill that aims to further restrict China's access to Western semiconductor technology. Dutch Trade Minister Sjoerd Sjoerdsma met with US Commerce Secretary Howard Lutnick and members of Congress to outline concerns regarding the 'MATCH Act', legislation that could significantly impact European companies, particularly the Netherlands-based ASML.
ASML, recognised as Europe's most valuable company, is the world's sole manufacturer of sophisticated lithography machines essential for producing cutting-edge AI chips. While its most advanced extreme ultraviolet (EUV) tools are already prohibited from export to China, the proposed MATCH Act would extend these curbs to include older-generation deep ultraviolet (DUV) immersion machines. These DUV tools, first shipped about a decade ago, currently represent a significant portion of ASML's sales to China, which accounts for 19% of the company's net system sales.
Minister Sjoerdsma described his visit to Congress as 'exceptional', underscoring the high stakes involved for the Netherlands. The potential expansion of export controls could have substantial economic repercussions for ASML and, by extension, the Dutch economy. The proposed bill, introduced in April, has not yet faced a full vote in either the House or Senate and would likely need to be integrated into a broader legislative package to pass.
This pushback from a key European ally highlights a growing divergence in approach between some European nations and the United States regarding technology trade with China. While the US aims to limit China's technological advancements, particularly in areas critical to national security, European countries are increasingly concerned about the economic impact of such broad restrictions on their own industries. For the UK, while not directly manufacturing such equipment, the stability of global supply chains and the economic health of key European trading partners like the Netherlands are important considerations, potentially affecting broader trade relationships and the availability of advanced components.
The UK government has generally aligned with allies on strategic export controls, but the specifics of this situation could prompt further discussions on balancing security concerns with economic interests. British businesses that rely on a stable global semiconductor market, from electronics manufacturers to automotive companies, will be observing these developments closely. Any significant disruption to the supply or cost of chips could have ripple effects across various sectors within the UK economy.