Dutch chip sector faces high risk of Chinese interference, study warns
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A government-funded study by The Hague Centre for Strategic Studies rates the Dutch semiconductor industry at very high risk of Chinese foreign interference, citing years of espionage against ASML and NXP. The report calls for stricter personnel vetting at sensitive chip sites and a public-private fund to replace high-risk foreign hardware. The findings come as ASML denied U.S. concerns that one of its EUV machines reached China in breach of export controls.
The Study's Findings
The Hague Centre for Strategic Studies (HCSS) report, written by Benedetta Girardi and Hans Horan for the China Knowledge Network, ranks the semiconductor sector above maritime and aerospace in risk of Chinese interference. It categorizes Beijing's methods into five types: economic statecraft, digital operations, physical interference, legal pressure, and talent-based espionage. ASML confirmed in 2023 that a former China-based employee stole data on lithography tools, one of several insider theft cases since 2015.
Proposed Countermeasures
The study proposes a tiered screening system that avoids targeting only Chinese nationals, as Dutch anti-discrimination law prohibits such policies. A resilience fund, built with the EU and NATO, would replace foreign equipment like server motherboards and baseboard management controllers with European-made alternatives. This would complement the €2.5 billion Project Beethoven, which expands domestic semiconductor production capacity.
Export Control Tensions
China restricted rare earth exports through 2025, materials critical for ASML's optical systems. The EU's anti-coercion instrument, designed with China in mind, remains a last resort. ASML denied U.S. claims in June that an EUV machine reached China illegally, calling the allegations baseless.
What's Next
The Dutch government is expected to review the report's recommendations in the coming months. It remains unclear whether the proposed resilience fund will gain EU and NATO backing, or whether stricter vetting can be implemented without legal challenges.
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Dutch chip sector faces high risk of Chinese interference, study warns
