The Dutch government will not allow ASML to renew licenses and provide spare parts to some of its machine customers in China according to a Bloomberg report. ASML, as one of the world's largest suppliers of chip-making machines, has previously been barred from exporting EUV equipment to China at the behest of the United States. This is an effort by the United States to curb China's semiconductor industry which is seen as capable of providing competition to their economy.
The deep ultraviolet lithography (DUV) machine operating license and spare parts to the company in China will expire at the end of 2024. As a result, the existing machine will no longer be able to operate in 2025. Previously it was reported that SMIC modified their DUV machine to produce 5nm chips like Kirin 9006C for Huawei.
The use of software to disable ASML machines is not a secret. Last May they confirmed that if Taiwan was attacked, all ASML machines used by TSMC could be shut down and no longer usable.
Without an alternative, it is not known how chip manufacturers in China will produce their chips after this. Tokyo Electron and Nikon also confirmed they will no longer sell their chip-making machines to China. China is trying to develop its semiconductor industry to allow it to operate without dependence on foreign technology but it is becoming more difficult with the Netherlands also screening semiconductor students from China.