Double whammy: Dutch curb chipmaking gear sales to China, U.S. to follow soon
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The Netherlands on Friday announced a new rule to curb exports of certain advanced chipmaking equipment to China, under which companies will need to apply for an export license for such gear. 
The new rule will be effective on September 1. The Dutch government expects 24 permits to be applied for once and 20 permits on an annual basis. 
"We've taken this step on national security grounds," said Dutch Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher. "It's good for the companies that will be impacted to know what they can expect. This will give them time to adapt to the new rules."
The U.S. is also expected to slap new restrictions on equipment sales to Chinese chipmakers, Reuters reported. ASML's (NASDAQ:ASML) older DUV models may be restricted from six Chinese facilities in a new rule that would curb exports of foreign equipment that have even a small percentage of U.S. parts to those plants. 
This will likely include a fab operated by China's largest chipmaker SMIC (OTCQX:SIUIF). The new rule, which could be published late July, will apply to ASML (ASML) as its systems contain U.S. components.
The U.S. will issue updates to its export control rules announced in October as it ramps up efforts to isolate China from one of the most important technologies of the future. Last year, the U.S. curbed the sale of certain Nvidia (NVDA) and Advanced Micro Devices (AMD) chips to China and Russia.
The Netherlands had earlier caved in to a U.S. request to impose export restrictions on China. Japan also joined in the chip war, and will restrict exports of 23 types of chipmaking equipment, effective July 23.
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