ASML, a Dutch company engaged in supplying equipment for semiconductor manufacturing, is facing more stringent controls over its ties with Chinese clients, reported Bloomberg, citing sources.

Under the Dutch export control regulations, ASML will not be permitted to service, repair, or provide spare parts for regulated equipment without prior government authorisation, the sources said.

These curbs are part of the new rules that The Netherlands government released last month prohibiting ASML from exporting the immersion deep ultraviolet (DUV) lithography machines to China without a permit.

The law is due to come into effect on 1 September 2023.

According to the sources, in addition to Dutch controls, the US is anticipated to prevent ASML from selling even older DUV lithography equipment to approximately half-dozen Chinese plants without prior clearance from Washington.

The additional curbs are in addition to the extensive export restrictions President Joe Biden’s administration put on China last year.

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These restrictions are said to pose a long-term danger to the competitiveness of Chinese semiconductor companies.

In response, Beijing has filed a complaint with the World Trade Organization.

Lithography equipment produced by ASML is used for producing chips that power smartphones, computers and other technology products.

One of the sources said that the US may also prohibit ASML from delivering spare parts and performing maintenance and repairs on the restricted equipment that is installed at the six targeted factories without a permit.

The US Department of Commerce, ASML, and the Dutch government all declined to comment on the development.