Dutch resent US pressure on chip sales

The head of Europe’s second-largest semiconductor equipment maker has accused the United States government of putting pressure on companies in friendly countries to help enact its tough export policies against China.

ASMI is second only to another Dutch company ASML in terms of chip production in Europe, and around 16 percent of its overall revenue comes from China.

The Netherlands’ tech sector has long been of particular interest to China, and for that reason, the US as well. In July 2021, The Wall Street Journal reported that China was keen to buy machines produced by ASML, which were used by the likes of Intel and Samsung to make chips.

But WSJ reported that the White House had asked the Dutch government to limit sales on the grounds of national security, which it said was the continuation of a policy stance first adopted by former US president Donald Trump.

ASMI has a production facility in Arizona, which makes it vulnerable to the interests of US lobbying. And ahead of a visit by US commerce export chief Alan Estevez and White House National Security Council senior director Tarun Chhabra to the Netherlands this week, ASMI’s chief executive Benjamin Loh has spoken out on the issue.

He said Washington wants everybody to stop supplying hi-tech equipment to China and was “putting a lot of pressure … to make sure that the Dutch government and the Japanese government follow as well”.

In October, ASMI announced a third-quarter revenue increase of 33 percent year-on-year to 610 million euros ($633 million), somewhat ahead of its own forecast.

In a statement, the company spoke of the importance of the Chinese market. “Our equipment sales in China, at 16 percent of our total revenue in the first nine months of 2022, have been a growing part of our business with a strong contribution to group profitability,” it said. But it warned that the new restrictions being brought in by US President Joe Biden could affect this situation in the future.

Ahead of the upcoming trade talks, Dutch Foreign Trade Minister Liesje Schreinemacher has indicated that her country will not necessarily bow to US wishes, telling parliament that the Netherlands had to “defend our own interests”.