“ASML faces more restrictions in China as Dutch government gives in to US pressure”

The Dutch government will go ahead with issuing curbs on the servicing of ASML’s gear in Chinese fabs, Bloomberg reports citing anonymous sources. The measures are thought to target ASML’s top-of-the-line DUV immersion machines, for which current licenses to perform maintenance operations and to supply spare parts allegedly won’t be renewed after they expire at the end of the year. US equipment makers are already barred from servicing their most advanced offerings in China.

The move follows diplomatic pressure from the US. Washington reportedly threatened to halt service operations through unilateral actions if the Netherlands and Japan, home of Tokyo Electron, wouldn’t ‘voluntarily’ put a stop to them. The US legal framework used to gain control over the flow of foreign technology, known as the Foreign-Direct Product Rule (FDPR), has been used before to restrict ASML’s business in China.