(Bloomberg) -- The Netherlands, home to ASML Holding NV, is preparing restrictions on certain chipmaking machines amid pressure from the U.S. to clamp down on China’s access to critical semiconductor technology.  

A new proposal would rein in exports of so-called immersion DUV lithography products, adding to restrictions that already exist for the most cutting-edge lithography machines, which are critical to producing the world’s most advanced chips. The rules are expected to be published before the summer, according to a letter sent by the government’s minister of foreign trade to lawmakers on Wednesday.

“The Netherlands considers it necessary on national and international security grounds that this technology is brought under control as soon as possible,” Minister Liesje Schreinemacher said in the letter. 

ASML is the largest European tech firm by market valuation and the world’s only manufacturer of certain lithography systems, which are needed to print patterns of transistors onto silicon wafers. While ASML has long been prevented from selling its most advanced technology — known as extreme ultraviolet lithography — to Chinese companies, the latest proposal would also bar machines that are one notch below that level.

ASML said in a separate statement Wednesday that the measures will “not have a material effect on our financial outlook” for 2023 or in the longer term. But the company said it will need to apply for export licenses for shipment of the most advanced DUV systems.

“It is important to consider that the additional export controls do not pertain to all immersion lithography tools but only to what is called ‘most advanced,’” the company said. However, ASML noted that it hasn’t received guidance on the exact definition of “most advanced.” 

If ASML’s assertion is correct, the new rules may fall short of matching the restrictions imposed by the US on its own chip equipment industry. ASML’s US counterparts are operating under constraints that also cover what products their machines are allowed to make and whether they can send people to work in China.

The Biden administration is counting on the Netherlands to help stop China from further developing its own chip industry and advancing its military capabilities. In October, the US rolled out sweeping export curbs, blocking a host of technology from being sent to any Chinese company.

In January, Dutch and Japanese officials agreed in principle to join the US campaign. Together, the three countries are the world’s top sources of machinery and have the expertise needed to make the world’s most advanced semiconductors. Weaker restrictions in the Netherlands would undermine that global accord and cast a shadow over a pledge by senior US officials such as Secretary of Commerce Gina Raimondo to create a level playing field for American equipment companies.

The US rules banned some supply from American gear vendors Applied Materials Inc., Lam Research Corp. and KLA Corp. from getting shipped to China. Japan’s Tokyo Electron Ltd. and ASML are the two other critical suppliers that the US needs to be on the same page to make the sanctions effective.

--With assistance from Ian King, Debby Wu and Jillian Deutsch.

(Updates with more on US efforts to restrict exports starting in seventh paragraph.)

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