US to put pressure on Netherlands to stop ASML's servicing contracts in China

In a concerted effort to curb China’s technological advancement, the Biden administration is set to exert pressure on the Netherlands to halt its leading chipmaking equipment manufacturer ASML from servicing certain tools in China, according to two sources familiar with the matter.

Alan Estevez, the chief of U.S. export policy, is slated to hold discussions with Dutch government officials and ASML Holding NV representatives in the Netherlands next Monday to address the issue of servicing contracts, the sources revealed.

Additionally, Washington may contemplate expanding the list of Chinese chip manufacturing facilities barred from acquiring Dutch equipment as part of the deliberations, one of the sources disclosed.

More from World

This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal Zohran Mamdani says he would arrest Netanyahu if he is elected as NYC mayor, calls Israeli PM 'war criminal'

While the Dutch Foreign Ministry confirmed the forthcoming meeting, it refrained from providing specific details regarding the agenda.

“The Netherlands always values constructive discussions with our partners. Monday’s meeting is a testament to that,” the Ministry stated in response to queries from Reuters.

Both the Commerce Department and ASML declined to offer comments on the matter, and there was no immediate response from the Chinese Embassy in Washington to requests for comment.

ASML shares briefly turned negative after the news.

The meeting is the latest move by Washington to convince allies to join its efforts to further crackdown on Beijing’s ability to produce cutting-edge chips, after sanctioned Chinese telecoms giant Huawei shocked the world last year with a new phone powered by a sophisticated chip.

Impact Shorts

More Shorts

‘The cries of this widow will echo’: In first public remarks, Erika Kirk warns Charlie’s killers they’ve ‘unleashed a fire’

Trump urges Nato to back sanctions on Russia, calls for 50–100% tariffs on China

The Huawei Mate 60 Pro is seen as a symbol of the China’s technological resurgence despite Washington’s ongoing efforts to cripple its capacity to produce advanced semiconductors.

Chip-related exports to China are vital for its economy. Chinese President Xi Jinping complained to President Joe Biden this week about U.S. efforts to block certain U.S. technologies, including advanced semiconductors, saying it hindered China’s development.

Restrictions on servicing ASML machines could be particularly painful given the large and expensive tools require constant maintenance. China was ASML’s second-largest market by sales last year (29%), after Taiwan.

With inputs from Reuters