United States to Grant Exemptions to Chip Export Regulations for Select Allies, Including Netherlands

The United States is set to provide exemptions to some allies from the upcoming stricter regulations on chip exports to China, according to a report by Reuters. The Netherlands, along with other countries like Japan and South Korea, will be among those exempt from the new export rules, due to their significant roles in the chip sector. Sources cited by Reuters state that the impact of the restrictions will be minimal for these countries. The new law is expected to be unveiled in August.

These exemptions will ensure that companies like ASML, a chip machine manufacturer based in Veldhoven, will not be affected by the stricter regulations, along with other manufacturers like Tokyo Electron. However, companies from countries such as Israel, Taiwan, Singapore, and Malaysia will be impacted by the rules. The U.S. Commerce Department, which oversees export policies, has not provided any comments on the matter.

A recent report by Bloomberg revealed that the United States is considering implementing tougher trade rules against companies involved in the chip industry in China. This would involve expanding the foreign direct product rule to restrict the export of machines utilizing American technology, even if produced by foreign entities. The expansion could potentially block several advanced chip factories in China from importing machinery from various countries.

The United States has been imposing restrictions on chip exports to China and its allies for some time. In October 2022, the country introduced extensive restrictions on the export of advanced chips and chip production equipment to China, which were later revised to address certain loopholes. The Netherlands also implemented a licensing requirement for semiconductor equipment exports to China under U.S. pressure, affecting companies like ASML. ASML has been barred from supplying its most advanced EUV machines to Chinese customers for a while now.