ASML's booth at China International Import Expo on November 4, 2021 Photo: VCG

The Netherlands is planning to limit ASML Holding NV's ability to repair and maintain its semiconductor equipment in China, Bloomberg reported on Thursday, noting that the move came as a result of political pressure from the US. Chinese experts said on Friday that the move, which violates market norms, will further disrupt the global semiconductor industrial and supply chain and predicted that the US pressure on its allies to join its technology crackdown campaign against China will backfire. 

The Dutch government of Prime Minister Dick Schoof will likely not renew certain ASML licenses to service and provide spare parts in China when they expire at the end of this year, Bloomberg reported, citing unnamed sources. The decision is expected to cover the company's top-of-the-line deep ultraviolet lithography machines, said the source.

The Dutch government's decision comes following US pressure, including potentially imposing certain unilateral measures on partner countries if they choose not to abide with the US' controls on China, the report pointed out.

A Chinese industry expert slammed the US' reckless move to coerce its allies to target China, and warned that if the Dutch government moves ahead with the plan, bilateral ties with China will be hampered and ASML's business will be undermined.

Ma Jihua, a veteran telecom industry observer, told the Global Times on Friday that the US has almost run out of its means in its crackdown on Chinese chips sector, having already restricted chip production investment in China and banned the exports of certain chipmaking equipment.

However, market forces are not in favor of the US' pressure, and the strong demand for mature chips has driven the growth of China's semiconductor sector, helping it mitigate the impacts of US crackdowns and maintain a rapid growth momentum featuring big strides in self-reliance and increasing market share in the global semiconductor industry, Ma said.

"As such, the US is increasingly relying on pushing its allies to do the job of containing China's tech rise while its allies are being pushed to its their limits, prompting the US to activate more of its tools in coercing its allies," said Ma.

Analysts noted the move by The Hague will risk damage to ASML's business, as about half of that comes from China, and warned that Chinese engineers may be forced to learn how to service machines and hone their skills if maintenance service is suspended as reported.