US secures Netherlands for Pax Silica chip alliance; ASML tensions persist over MATCH Act export restrictions

The Netherlands formally signed onto the Pax Silica initiative this week, a US-led coalition to reduce reliance on China for semiconductor manufacturing and raw materials. Dutch Trade Minister Sjoerd Sjoerdsma traveled to Washington to sign the agreement with US Commerce Secretary Howard Lutnick. The move is a strategic win for the US: the Netherlands is home to ASML, Europe's most advanced semiconductor equipment manufacturer and the sole producer of cutting-edge extreme ultraviolet (EUV) photolithography systems. Pax Silica, launched by the US State Department in December 2025, now counts 18 countries including Australia, Israel, Japan, South Korea, Singapore, UK, Greece, Qatar, UAE, India, Sweden, Finland, Philippines, and Norway.

However, tensions simmered during the signing. Dutch officials raised concerns over the US MATCH Act, bipartisan legislation that would restrict companies like ASML from servicing machines and selling less advanced chip-making tools already deployed to China. Under MATCH, foreign companies that do not comply with China restrictions face penalties including loss of access to US components, software, and customers. Sjoerdsma stated that 'every country is responsible for its own laws' and expressed reservations about the bill's reach. The Netherlands effectively joined Pax Silica in December 2025 as a 'non-signing partner,' but formalized the commitment this week.

For the US, Pax Silica's goal is to create a Western-aligned supply chain that can operate independently of China and prevent sensitive semiconductor technologies from reaching Beijing. For the Netherlands and other Pax Silica members, the calculus is more complex: they gain security alignment and input into shared tech standards, but also face pressure to restrict business with a major customer. ASML's leverage is real—it remains a critical bottleneck in the global chip supply chain—but its room to negotiate may be limited if MATCH Act enforcement tightens. Architects and CIOs tracking supply chain resilience should monitor whether the US-Netherlands disputes over tooling restrictions resolve in favor of tighter controls or softer enforcement.