The Dutch chip machine manufacturer ASML is temporarily not allowed to deliver its most advanced machines to China. Earlier permits to sell strategic technology to China have expired. The ban may be a result of concerns within the European Union about the increasing Chinese economic influence in Europe. Additionally, the Netherlands is currently preparing a new China policy.
The technology giant is awaiting approval to resume deliveries. The company confirmed this following questions from the Dutch economic television channel RTL Z. The blocked sale concerns the expensive EUV machines for which ASML is the global market leader, and which are used to make the most powerful computer chips.
The advanced technology falls under the Wassenaar Arrangement. In this agreement, 42 countries have established a list of technology that cannot be freely supplied to other countries. It concerns strategic technology that can also be used for military purposes. China is not a participant in the agreement and therefore requires a permit.
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ASML is now waiting for a new license to be issued by the Dutch Ministry of Foreign Affairs. Other less advanced machines may be delivered to Chinese companies without a permit.
In addition to lacking the necessary license, ASML is also reportedly a victim of the trade war between the United States and China, according to the Japanese Nikkei Asian Review. The company allegedly fears American sanctions if it supplies goods and equipment to Chinese companies.
President Trump has also been putting pressure on foreign companies that supply Chinese businesses cooperating with the Chinese tech company Huawei. ASML has multiple customers that make chips for Huawei.
Huawei has been placed on a blacklist by the US. American companies may only do business with Huawei with explicit permission. ASML could also be affected by this, as the chip machine maker also has an American branch. The United States has urged EU countries not to supply products to Huawei or buy telecom equipment from the Chinese company.
The EU is currently preparing to introduce 5G technology. Several EU countries are about to purchase Huawei equipment for 5G. Several ICT researchers and security services have warned that the Chinese authorities could use such equipment to spy within the EU. Similar concerns exist about equipment from the Russian company Kaspersky.
The Dutch company does not wish to comment on orders and deliveries to individual customers, as this is strategically sensitive information.