Photo: ASML‘We have made it very clear to the Dutch,’ the paper quotes Pete Hoestra as saying.
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ASML has been waiting since June 2019 for an export licence to send a next-generation chip maker to China, which uses technology based on extreme ultraviolet (euv) wavelengths. But China has made catching up to those companies in chip-making technology a key national priority and is investing tens of billions of dollars in the effort.Netherlands Foreign Ministry spokeswoman Irene Gerritsen said the Dutch government has sovereign discretion to grant licenses of dual-use technology and would not comment on specific cases.Six weeks later, during his visit to the White House, Rutte was given a copy of the intelligence report.
But China cannot get the equipment from anywhere else: after spending around €10 billion on their development, ASML is the only company capable of making the hugely complex €100 million-plus pieces of equipment. The request is still being dealt with by the foreign affairs ministry. This means that ASML needs a permit from the Dutch Ministry of Foreign Affairs to export the machines. ‘We believe that this is extremely sensitive technology which does not belong in certain places.’
That in turn makes it possible to create faster and more powerful microprocessors, memory chips and other advanced components, which are critical for consumer electronics and military applications alike.That drive has run head-on into the Trump administration’s efforts to block the flow of sensitive technology to China on national security grounds. Shortly after the White House visit, the Dutch government decided not to renew ASML’s export license, and the $150 million machine has not been shipped.ASML’s export license expired unused on June 30, 2019, and no new license was granted in the following eight-week period during which a renewal request would normally be considered, according to a public database of licenses published by the Dutch Ministry of Foreign Affairs.
Meetings took place at the Netherlands embassy in Washington in late 2018 and January 2019, two separate sources said.WASHINGTON/AMSTERDAM/SAN FRANCISCO (Reuters) - The Trump administration mounted an extensive campaign to block the sale of Dutch chip manufacturing technology to China, with Secretary of State Mike Pompeo lobbying the Netherlands government and White House officials sharing a classified intelligence report with the country’s Prime Minister, people familiar with the effort told Reuters.With a market value of more than 110 billion euros, ASML has grown to dominate the lithography market over the last two decades and is the pride of Dutch industry.The U.S. Department of State did not reply to a request for comment.Over the following months, U.S officials examined whether they could block the sale outright and held at least four rounds of talks with Dutch officials, three sources told Reuters.ASML has never publicly disclosed the identity of the Chinese customer, but Nikkei and others have reported that it is Semiconductor Manufacturing International Corp (SMIC), China’s biggest chip-making specialist.
Companies selling U.S.-made goods are now barred from shipping them to blacklisted Chinese firms including telecoms giant Huawei Technologies [HWT.UL] and surveillance vendor Hikvision without a special license.The high-level push, which has not previously been reported, demonstrates the importance the White House places on preventing China from getting hold of a machine required to make the world’s fastest microprocessors. Kupperman did not reply to a request for comment.With or without the EUV license, ASML expects its Chinese sales to increase in 2020 as it continues to ship earlier-generation equipment.Pompeo urged Rutte himself to block the sale, despite commercial pressures to let ASML proceed, during a visit to the Netherlands last June, three sources said.“Our ask is that our allies and our partners and friends don’t do anything that would endanger our shared security interest,” Pompeo told reporters in The Hague on June 3. ASML said only that it is still waiting on approval on a new license request.
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