Dutch PM weighs ASML's economic interests amid potential tightening of China export rules

The Dutch government will consider the economic interests of ASML when deciding on further tightening export rules for the company's chipmaking equipment to China, Dutch Prime Minister Dick Schoof said on Friday.

"We are in talks, good talks and we are also watching out very specifically for the economic interests of ASML, those need to be weighed against other risks and the economic interests are extremely important," Schoof said, responding to questions about potential new restrictions on ASML exports to China.

"ASML is for the Netherlands an extremely important, innovative industry that should not suffer under any circumstances, because that would damage ASML's global position," he added.

Schoof declined to comment on Bloomberg News reports from Thursday that suggested the Netherlands would impose further curbs on ASML's chip business with China.

China is ASML's third-largest market after Taiwan and South Korea, with Chinese companies accounting for about 20 per cent of its current order backlog. Following earlier restrictions, Chinese chipmakers are primarily buying older ASML equipment that isn't subject to export restrictions and is used to produce "legacy" chips vital to industrial manufacturing worldwide.

Previous Dutch rules mandated a licence for ASML's high-end products. In October 2023, the US began independently restricting ASML from exporting some mid-range tools—a move that stirred debate in the Dutch parliament.

The Dutch government, closely aligned with the US and a staunch NATO supporter, is also displeased with China's backing of Russia in the Ukraine war.